Senator Ray Haynes (R) held a press conference this morning to discuss a
report his office produced regarding municipal utility energy charges.
Twelve reporters attended the press conference.  According to Senator
Haynes, none of municipal utilities provided him with documentation or
assistance with his report.  Senator Haynes delivered the report to Senator
Dunn and has requested that he open an investigation into municipal utility
practices.  He also expressed continued disappointment over the Senate's
unwillingness to adopt his legislative amendment which would establish a
windfall profit's tax for municipal utilities.

Senator Haynes referenced Enron several times by comparing Enron's rates to
those rates charged by LADWP and SMUD.

In developing the report, Senator Haynes' office did not analyze peak versus
off peak energy prices, what percentage of power was being sold by municipal
utilities, or, what the cost for producing or procuring power was for the
municipal utilities.  These items were raised by a reporter.  After the
press conference, reporters met privately with SMUD and other municipal
utilities who defended their actions and refuted Senator Haynes' claims.

I was able to obtain one copy of the report and will FedEx it to Karen in
Houston.