2 e-mails attached
---------------------- Forwarded by Richard Shapiro/NA/Enron on 07/06/2001 
03:37 PM ---------------------------


Pat Shortridge
07/06/2001 01:18 PM
To: John Shelk/NA/Enron@Enron, Linda Robertson/NA/Enron@ENRON, Chris 
Long/Corp/Enron@ENRON, Richard Shapiro/NA/Enron@Enron, Mark 
Palmer/Corp/Enron@ENRON, Carolyn Cooney/Corp/Enron@ENRON
cc:  

Subject: Davis & Company -- incompetence personified

You hate to say that someone can't do anything right, but THESE GUYS CAN'T DO 
ANYTHING RIGHT.



California Power-Buying Data Disclosed in Misdirected E-Mail
By Daniel Taub 
Sacramento, California, July 6 (Bloomberg) -- California Governor Gray 
Davis's office released data on the state's purchases in the spot electricity 
market -- information Davis has been trying to keep secret -- through a 
misdirected e-mail. 
The e-mail, containing data on California's power purchases yesterday, was 
intended for members of the governor's staff, said Davis spokesman Steve 
Maviglio. It was accidentally sent to some reporters on the office's press 
list, he said. 
Davis is fighting disclosure of state power purchases, saying it would 
compromise negotiations for future contracts. This week, Davis appealed a 
state judge's order to release spot-market invoices, purchase orders and 
confirmation sheets for power contracts signed through June 27. The state is 
buying electricity on behalf of utilities, which are burdened by debt. 
``It's an internal document,'' Maviglio said of the e-mail. ``We have a 
meeting every morning where we discuss issues of the day.'' The e-mail 
contained minutes of today's meeting, he said. 
According to the e-mail, the state bought 283,000 megawatt- hours of 
electricity for $37.4 million yesterday. One megawatt- hour is enough 
electricity to light 750 typical California homes for an hour. Prices ranged 
from $25 to $149.99 a megawatt-hour. Maviglio said the information in the 
e-mail is accurate. 
Power for next-day delivery during peak-use hours averaged $79.67 a 
megawatt-hour on the California-Oregon border yesterday, according to 
Bloomberg Energy Service. California paid an average of $132 on the spot 
market, according to the e-mail. Prices on the spot market tend to be higher 
than on the day-ahead market. 
The governor has proposed releasing data on spot-market purchases once a 
quarter, arguing that the state uses power-buying strategies tailored to each 
season. Lawyers for the media and Republican legislators say state law 
requires disclosure of contracts within seven days after they are signed. 


---------------------- Forwarded by Richard Shapiro/NA/Enron on 07/06/2001 
03:37 PM ---------------------------


Ban Sharma@ENRON_DEVELOPMENT
07/06/2001 01:27 PM
To: Mark Palmer@ENRON
cc: Richard Shapiro@Enron 

Subject: DWR Contracts Summary Website

Mark,

Your site is finally activated. Real interesting. Worth a look

Link to the DWR Contracts. 

http://www.sco.ca.gov/power_page/contract_info.htm

Ban


An interesting article too:

Connell: Power cost twice Davis' figure 
July 6, 2001 
By JOHN HOWARD
The Orange County Register 
SACRAMENTO -- The average cost of electricity purchased under $43 billion of 
worth of state contracts is actually more than double the amount reported by 
Gov. Gray Davis' administration, state Controller Kathleen Connell said 
Thursday. 
Connell said her staff's analysis put the per-megawatt average at $170, 
compared with $69 to $79 estimated by Davis. 
Connell stopped short of suggesting that the higher cost could drive another 
increase in rates, although consumer groups said the higher amount likely 
would require some future increase. 
The controller, who writes the state's checks, said her figures assume fixed 
prices for natural gas over the duration of the contracts, which range from a 
few months to 20 years. 
The administration, noting that nearly half its contracts are pegged to the 
fluctuating market price of natural gas, said costs on many of the contracts 
would decline over time. 
Consumer groups were skeptical of the administration's numbers. 
"You could cut these numbers in various ways and make different averages, 
long-range or short-range contracts, peak power or nonpeak, and probably 
either average could be defended mathematically," said Nettie Hoge of The 
Utility Reform Network. "We can't tell you whether it's $69 or $170 - the 
contracts are very convoluted and complex."