How about $1 billion to build some new pipelines in California? 



	Jeffery Fawcett
	11/22/2000 10:08 AM
		 
		 To: Jeff Dasovich/NA/Enron@Enron
		 cc: Susan Scott/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON
		 Subject: A chicken in every pot

Hey,
Wouldn't this fix everything?   What a great idea-  a govenment owned 
utility.  Who in their right mind would want to give the money back to 
taxpayers?  I think Enron should cast aside its dependency on free markets, 
and throw its support behind this well thought out public initiative.  Let us 
know how Transwestern can help!

Calif. lawmaker pushes for state energy reserve
California State Sen. Steve Peace called for the state to set aside $2 
billion of a projected $10
billion budget surplus to create a reserve account to serve the state,s 
energy needs.
A representative at Peace,s office said the senator planned the fund as a 
&cushion8 to help
the state bounce back from energy price shocks like those that hit it last 
summer.
Peace, speaking Monday at a briefing on the upcoming state budget, suggested 
that the
California Legislature set aside $2 billion to use at a later date.  The 
funds could be included in
the budget that Gov. Gray Davis is scheduled to announce Jan. 10.  
Ostensibly, the government
could use the funds to purchase some of the state,s transmission grid and 
generation assets, or
to build new assets.
In his remarks, Peace said some of the $2 billion could be used to build a 
500-MW generation
facility, which he estimates at $300 million, a peaker that could be set up 
for $16 million,
or a transmission grid such as the $200 million system a California utility 
has proposed for the
southern part of the state.
&The use of public dollars to finance development, private-public 
partnerships, or to capitalize
publicly owned utilities are all options which California policymakers may 
have to consider
if [FERC] is unable to bring wholesale energy markets under control,8 he said.
Still, representatives at the senator,s office stressed that Peace was not 
making any policy
decisions in his statement. Rather, a representative said, Peace was acting 
in his capacity as
chairman of the Senate Budget and Fiscal Committee and setting aside funds 
that can be available
for future use.
Peace,s initiative comes on the heels of a report by the Legislature,s 
Legislative Analysis
Office forecasting a $10.3 billion surplus for fiscal years 2000-2002 (a $6.9 
billion surplus for
2000-2001 and a $3.4 billion surplus for 2001-2002).