----- Forwarded by Jeff Dasovich/NA/Enron on 03/13/2001 11:43 AM -----

	"Ronald Carroll" <rcarroll@bracepatt.com>
	03/13/2001 08:44 AM
		 
		 To: <mmilner@coral-energy.com>, <rreilley@coral-energy.com>, 
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		 cc: 
		 Subject: Fwd: Gov. Davis and Western U.S. governors ask FERC for temporary 
price caps


----- Message from "Tracey Bradley" <tbradley@bracepatt.com> on Tue, 13 Mar 
2001 08:31:55 -0600 -----
To:	"Paul Fox" <pfox@bracepatt.com>
cc:	"Andrea Settanni" <asettanni@bracepatt.com>, "Charles Ingebretson" 
<cingebretson@bracepatt.com>, "Charles Shoneman" <cshoneman@bracepatt.com>, 
"Deanna King" <dking@bracepatt.com>, "Jeffrey Watkiss" 
<dwatkiss@bracepatt.com>, "Gene Godley" <ggodley@bracepatt.com>, "Kimberly 
Curry" <kcurry@bracepatt.com>, "Michael Pate" <mpate@bracepatt.com>, "Ronald 
Carroll" <rcarroll@bracepatt.com>
Subject:	Gov. Davis and Western U.S. governors ask FERC for temporary price 
caps
Press Release 
OFFICE OF THE GOVERNOR 
------------------------------------------------------------------------------
--

PR01:089
FOR IMMEDIATE RELEASE
03/12/2001 4:45 PM 



GOVERNOR DAVIS, WESTERN GOVERNORS ASK FERC 
FOR CAPS ON WHOLESALE POWER COSTS


SACRAMENTO 

Governor Gray Davis, joined by Governor Gary Locke of Washington and Governor 
John Kitzhaber of Oregon, today wrote the Federal Energy Regulatory 
Commission (FERC) to request a temporary price cap on the cost of power 
charged by generators in the western states.

The three governors suggested a "cost-based" price cap for power purchased in 
the spot market. Under the proposal, generators would be allowed to recover 
all of their costs and provide a small level of profit of approximately 
$25/Mwh. A similar proposal was offered by FERC Commissioner William Masey.

"While we fully recognize the benefits of a free market, our problem is that 
we have a shortage of electricity," wrote the governors. "In spite of our 
aggressive and urgent efforts, the problem will only get worse throughout the 
year and particularly this summer. This shortage has enabled generators to 
receive 'unjust and unreasonable' charges for their wholesale energy.

"A substantial portion of the power necessary to serve load will still be 
required to be purchased in the more expensive hour/ahead and spot markets. 
The relief we are requesting will be necessary only in the event of a 
shortage and only for this year," said the governors.

Under the proposal, bilateral contracts and long term contracts would be 
exempt. Federal power marketing agencies not controlled by FERC (such as the 
Bonneville Power Administration) would be requested to voluntarily adhere to 
such a plan.

The governors asked for prompt action on their request.
 

###