Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 03/21/2001 12:01 PM -----

	smara@enron.com
	Sent by: "Report mailer problems to http://www.quicken.com/support" 
<nobody@nowhere.com>
	03/21/2001 11:55 AM
	Please respond to smara
		 
		 To: undisclosed-recipients:;
		 cc: 
		 Subject: Calif State Controller:General Fund Surplus Dn To

I thought you might find this story interesting.
 
------------------------- Article -------------------------

Wednesday, March 21, 2001 02:21 PM
 
<!--TEXT-->
 
LOS ANGELES (Dow Jones)--California State Controller Kathleen Connell 
Wednesday 
said the state's general fund surplus has dropped to $3.2 billion from $8.5 
billion in January, mostly because of electricity purchases made by the 
state's 
Department of Water Resources, a press release said.

Connell also denied Gov. Gray Davis' request to transfer an additional $5.6 
billion from the general fund to the Special Fund for Economic Uncertainties, 
the release said.

Connell noted that, given the rapid depletion of the general fund on power 
purchases, the state would need to borrow $2.4 billion in order to tranfer 
the 
$5.6 billion from the general fund to the special fund.

"We started this year with a generous budget surplus. The energy crisis has 
taken much of that away, and this transfer on top of the electricity 
purchases 
would put the fund at risk," Connell said.
 
Connell called on Davis to ensure that the CDWR completes by the end of May 
2001 
the revenue bond sales that will be used to buy power and repay the general 
fund.

She also asked that the CDWR notify her of all power purchases made and 
contracts negotiated thus far and requested that she be told within 7 days of 
any purchases and contracts negotiated in the future.

Connell also said she wanted to be told within 24 hours of any power buys 
that 
exceed $55 million and asked that the Department of Finance be directed to 
prepare new general fund cash flow estimates for the next 30 and 60 days, and 
for the end of the fiscal year.

The state's Department of Water Resources has been buying power since January 
in 
lieu of Edison International (EIX) utility Southern California Edison and 
PG&E 
Corp (PCG) utility Pacific Gas and Electric Co, because suppliers refused to 
sell to the nearly-bankrupt utilities.

-By Jessica Berthold; Dow Jones Newswires; 323-658-3872; 
jessicaberthold@dowjones.com
 
Gov. Davis' office said, in response to Connell's comments, that the state 
budget was solid and the economy remained strong.

"We will be getting the money back we've paid for energy and it should have 
no 
significant effect on the state's finances from the Wall Street perspective," 
said Davis press secretary Steve Maviglio.

-By Jessica Berthold; Dow Jones Newswires; 323-658-3872; 
jessicaberthold@dowjones.com
 
  
2001 Dow Jones & Company, Inc. All Rights Reserved.
 
-----------------------------------------------------------
This article on the Excite Money and Investing Channel is produced by
Quicken.com, the objective source for making the most of your money.
Visit Excite Money and Investing at http://quicken.excite.com next time
you need financial news, stock quotes, portfolio services, or information
about taxes, mortgages, and insurance.