----- Forwarded by Jeff Dasovich/NA/Enron on 06/22/2001 07:10 PM -----


	Tom Ross <tross@mcnallytemple.com> 06/22/2001 05:02 PM 	   To: Jean Munoz <jmunoz@mcnallytemple.com>, "'Andy Brown (E-mail)'" <ABB@eslawfirm.com>, "'B Brown Andy (E-mail)'" <andybrwn@earthlink.net>, "'Baker Carolyn (E-mail)'" <cabaker@duke-energy.com>, "'Bob Escalante (E-mail)'" <rescalante@riobravo-gm.com>, "'Bob Weisenmiller (E-mail)'" <rbw@mrwassoc.com>, "'Curtis Kebler (E-mail)'" <curtis_l_kebler@reliantenergy.com>, "Dean. Nistetter (E-mail)" <Dean.Nistetter@dynegy.com>, "'Douglas Kerner (E-mail)'" <DKK@eslawfirm.com>, "'Greg Blue (E-mail)'" <gtbl@dynegy.com>, "'Jan Smutny-Jones (E-mail)'" <smutny@iepa.com>, "'Jeff Dasovich (E-mail)'" <Jeff.Dasovich@enron.com>, "'Joe Ronan (E-mail)'" <joer@calpine.com>, "'John Larrea (E-mail)'" <john.g.larrea@williams.com>, "'Julee Malinowski-Ball (E-mail)'" <jmball@ns.net>, "'Kassandra Gough (E-mail)'" <kgough@calpine.com>, "'kent Palmerton (E-mail)'" <kent.palmerton@williams.com>, "'Lynn Lednicky (E-mail)'" <lale@dynegy.com>, dpeters@mccabeandcompany.net, "'Marty Wilson (E-mail)'" <mwilson@pstrategies.com>, "'McNally Ray (E-mail)'" <rmcnally@mcnallytemple.com>, "''Nam Nguyen' (E-mail)'" <nam.nguyen@powersrc.com>, "'Norton Kelli (E-mail)'" <knorton@mcnallytemple.com>, "'Paula Hall-Collins (E-mail)'" <paula.hall-collins@williams.com>, "'Pigott Jack (E-mail)'" <jackp@calpine.com>, "'Richard Hyde (E-mail)'" <rwhyde@duke-energy.com>, "'Roger Pelote (E-mail)'" <roger.pelote@williams.com>, "'Stephanie-Newell (E-mail)'" <stephanie-newell@reliantenergy.com>, "'Sue Mara (E-mail)'" <smara@enron.com>, "Tom Williams (E-mail)" <tcwillia@duke-energy.com>, "'Alex Sugaoka (E-mail)'" <alex.sugaoka@uaecorp.com>, "'Bill Carlson (E-mail)'" <william_carlson@wastemanagement.com>, "'Bill Woods (E-mail)'" <billw@calpine.com>, "'Bob Ellery (E-mail)'" <bellery@spi-ind.com>, "'Bob Gates (E-mail)'" <bob.gates@enron.com>, "'Cody Carter (E-mail)'" <cody.carter@williams.com>, "'Curt Hatton (E-mail)'" <Curt.Hatton@gen.pge.com>, "'David Parquet'" <david.parquet@enron.com>, "'Dean Gosselin (E-mail)'" <dean_gosselin@fpl.com>, "'Doug Fernley (E-mail)'" <fernley.doug@epenergy.com>, "'Duane Nelsen (E-mail)'" <dnelsen@gwfpower.com>, "'Ed Tomeo (E-mail)'" <ed.tomeo@uaecorp.com>, "'Eileen Koch (E-mail)'" <eileenk@calpine.com>, "'Eric Eisenman (E-mail)'" <eric.eisenman@gen.pge.com>, "'Frank DeRosa (E-mail)'" <frank.derosa@gen.pge.com>, "Frazier Blaylock (E-mail)" <frazier_blaylock@ogden-energy.com>, "'Hap Boyd (E-mail)'" <Hap_Boyd@enron.com>, "'Hawks Jack (E-mail)'" <jack.hawks@gen.pge.com>, "'Jim Willey (E-mail)'" <elliottsa@earthlink.net>, "'Joe Greco (E-mail)'" <jgreco@caithnessenergy.com>, "'Jonathan Weisgall (E-mail)'" <jweisgall@aol.com>, "'Kate Castillo (E-mail)'" <CCastillo@riobravo-gm.com>, "'Kelly Lloyd (E-mail)'" <kellyl@enxco.com>, "'Ken Hoffman (E-mail)'" <khoffman@caithnessenergy.com>, "'Kent Fickett (E-mail)'" <kfickett@usgen.com>, "'Lynn Lednicky (E-mail)'" <lynn.a.lednicky@dynegy.com>, "'Marty McFadden (E-mail)'" <marty_mcfadden@ogden-energy.com>, "'Paula Soos'" <paula_soos@ogden-energy.com>, "'Randy Hickok (E-mail)'" <rjhickok@duke-energy.com>, "Rick S. Koebbe (E-mail)" <rskoebbe@powerworksinc.com>, "'Rob Lamkin (E-mail)'" <rllamkin@seiworldwide.com>, "'Ross Ain (E-mail)'" <ain@worldnet.att.net>, "'Steve Iliff'" <siliff@riobravo-gm.com>, "'Steve Ponder (E-mail)'" <steve_ponder@fpl.com>, "'Tony Wetzel (E-mail)'" <twetzel@thermoecotek.com>, "'William Hall (E-mail)'" <wfhall2@duke-energy.com>, trusso@mcnallytemple.com, sadlersa@earthlink.net, mstultz@epsa.org, rtemple@mcnallytemple.com, tracy.fairchild@edelman.com, megan.beiser@edelman.com, deborah.fiorito@dynegy.com, lchurch@epsa.org, Katie Kaplan <kaplan@iepa.com>, tcwillia@duke-energy.com, rwhyde@duke-energy.com, tmcmorrow@manatt.com, Suzy.L.Rodriguez@dynegy.com, ppitts@wiredworld1.com, mnobili@cal-lobby.com, sscsus@aol.com, kvellandi@pstrategies.com, kelly@hnks.com, kirk@cea.com, jbkinney@duke-energy.com  cc:   Subject: Smutny Letter to Senator Dunn	




June 22, 2001


The Honorable Joseph Dunn
Chair, Senate Select Committee
California State Senate
Room 2080
California State Capitol
Sacramento, CA 95814

Dear Senator Dunn:

Earlier this year, you met individually with IEP and various other parties to explain the purpose of the Senate Select Committee?s hearing and the process under which they were to be conducted.  You made it very clear that you were planning to have fact-finding hearings based upon fundamental fairness and due process.  You made a further commitment that there would be no surprises.  Prior to today, the hearings have been conducted consistent with that representation.

Unfortunately, today it appears that the Committee has set a new course that radically departs from these previous commitments.  Today, the Committee is hearing testimony from several surprise witnesses.  These witnesses are former employees of San Diego Gas and Electric (SDG&E) under contract with Duke Energy for an interim period during which Duke Energy operated the facilities in San Diego.   It is our understanding that these former contract employees are alleging that the company failed to properly maintain these facilities, and they are alleging that Duke Energy cycled these facilities differently than the former owner, SDG&E.  It is also our understanding that Duke Energy will not be afforded the opportunity to contemporaneously challenge these allegations and/or provide an explanation as to the operational behavior of the facilities.  In short, the hearings are being reduced to a media event, giving credence to the unsustainable allegations of disgruntled ex-employees.

Respectfully, it would appear that the Committee has wandered far afield of its stated goals.  These hearings have the potential of identifying what went wrong with California?s energy policy and how to fix it.  However, this will only occur if this inquiry is based on informal facts and complete information, not innuendo and unsubstantiated allegations.  It is the pursuit of facts, not headlines, which will solve California?s energy crisis.  These facts will be revealed only in a fair process, where allegations made are subject to contemporaneous response.  

It is our hope that today?s process is an aberration, and not a departure from your commitments.  The Committee is at a crossroads.  It can choose to engage in fact-finding and analysis, or it can be reduced to a witch-hunt in pursuit of headlines.  For the benefit of all Californian?s, the Committee should focus on fact-finding and analysis.

Sincerely,



Jan Smutny-Jones
Executive Director