----- Forwarded by Jeff Dasovich/NA/Enron on 04/04/2001 10:59 PM -----

	Jean Munoz <jmunoz@mcnallytemple.com>
	04/04/2001 08:51 PM
		 
		 To: "'Andy Brown (E-mail)'" <ABB@eslawfirm.com>, "'B Brown Andy (E-mail)'" 
<andybrwn@earthlink.net>, "'Baker Carolyn (E-mail)'" 
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Katie Kaplan <kaplan@iepa.com>, <tcwillia@duke-energy.com>, 
<rwhyde@duke-energy.com>
		 cc: 
		 Subject: Davis Press Conference


As you may have heard, Governor Davis intends to hold a press conference 
Thursday evening at 6:05 PST to deliver "an important live address on energy 
... will speak in detail about California's energy emergency and make an 
important announcement." ?He has requested five minutes during evening 
newscasts to make his remarks. 

While there is no way to know specifics, we've heard rumor that his remarks 
will include the following:

1. Discussion of rate increases
2. State's conservation efforts
3. Blame FERC for crisis
4. Point out what a great job he is doing 

IEP is prepared to react immediately to the Governor's remarks if needed. ?

Below are two Dow Jones stories on the press conference, and a memo that was 
released by Davis' top financial adviser, Joe Fichera.

We'll keep you posted -- but please alert me or Katie if you hear anything.

Thanks,
Jean


-- 
Jean Munoz
McNally Temple Associates, Inc.
916-447-8186
916-447-6326 (fx)



Calif Gov To Make 'Important' Energy Announcement Thurs  ????
Updated: Wednesday, April 4, 2001 08:17 AM?ET ????
?
(This article was originally published Wednesday) 

By Jason Leopold 

OF DOW JONES NEWSWIRES 

LOS ANGELES (Dow Jones)--In a highly unusual move, California Gov. Gray Davis 
Tuesday requested radio and television stations in the state to clear five 
minutes of time Thursday evening so he can make an important announcement 
regarding the state's energy crisis. 

Davis is expected to deliver a speech at 6:05 p.m. PST and will likely talk 
about the state's conservation efforts, a 4,000 megawatt shortfall expected 
next month, the need to bring new generation online, recent rate hikes 
ordered by the California Public Utilities Commission, and the possibility 
for further rate increases this summer to keep the state's three 
investor-owned utilities solvent, sources close to Davis told Dow Jones 
Newswires. 


The source said Davis is not expected to discuss a final agreement to buy the 
power lines owned by PG&E Corp. (PCG, news, msgs), unit Pacific Gas & 
Electric, Edison International's (EIX, news, msgs) unit, Southern California 
Edison, and Sempra Energy's (SRE, news, msgs) unit, San Diego Gas & Electric. 

Davis' press secretary, Steve Maviglio, would not comment on Davis' speech. 

In a memo to the media, Davis' office said the governor will "deliver an 
important live address on energy from his office in Sacramento. During this 
historic address to the people of California, the governor will speak in 
detail about California's energy emergency and make an important 
announcement." 

The last time a California governor interrupted a broadcast schedules was in 
1992, when Republican Gov. Pete Wilson delivered a speech about the state's 
budget problems, a spokesman in Davis' office said. 

But Davis' staff said "this is the first time in recent memory that a 
Governor has asked for time statewide to deliver a live address to the people 
of California." 

-By Jason Leopold; Dow Jones Newswires; 323-658-3874; 
jason.leopold@dowjones.com



Calif Gov Staff To Speak To Analysts About Energy Crisis ?? ??
Updated: Wednesday, April 4, 2001 05:37 PM?ET ???
?
LOS ANGELES (Dow Jones)--California Gov. Gray Davis' advisers will speak to 
Wall Street analysts Thursday following a live state address on the state's 
energy crisis, according to an email sent to the financial community and 
obtained by Dow Jones Newswires. 

Daivs' staff, in a highly unusual move, asked radio and television 
broadcasters to clear five minutes of air time Thursday night so Davis can 
make an "important announcement" about the state's months-long energy crisis. 

Sources close to the governor said Davis will discuss the state's 
conservation efforts, a 4,000 megawatt supply shortfall expected this summer, 
recent rate increases ordered by state regulators and the possibility for 
further rate increases to replenish the state's budget surplus. 

Davis is expected to discuss plans for keeping the state's three 
investor-owned utilities, PG&E Corp. (PCG, news, msgs) unit Pacific Gas & 
Electric, Edison International (EIX, news, msgs) unit Southern California 
Edison and Sempra Energy (SRE, news, msgs) unit San Diego Gas & Electric, 
solvent but he isn't expected to discuss a proposal to buy the utilities' 
power lines. 

Davis spokesman, Steve Maviglio, said he couldn't comment on the governor's 
speech. He said, however, Davis has received the financial data regarding the 
state's spending on wholesale electricity and what it expects to spend in the 
months ahead. 

In the email sent to Wall Street analysts, Davis' top financial adviser, Joe 
Fichera, said the governor's advisers will hold a conference call at 9:45 
p.m. EDT (0145 GMT) with analysts followed by a question-and-answer session. 

Regarding Davis' speech Thursday, Fichera wrote in his email that "while 
everyone will wish to speculate on what (Davis) will or will not say, I can 
point out that the governor has been consistent in his goals to achieve: 
significant demand side management, increased generation supply and 
restoration of the financial health of the investor-owned utilities. 

"All three components are important elements to resolving the energy 
situation in California and will be addressed by the governor," Fichera wrote 
in the email. 

In addition, "it may go without saying, but the situation in California 
involves many moving parts, many constituencies and independent players that 
need to be brought together to resolve a problem that is of a size and scope 
that no one anticipated," Fichera's email says. 

"It certainly appears confusing and chaotic. The governor and his team 
recognize the complexity of the problem and are rigorously attempting to move 
the process to closure," the email says. "He is addressing all open issues so 
that consumers, investors and others can achieve some certainty and move on. 
We cannot make all the moving parts stop, nevertheless, the governor will 
provide the leadership needed for a resolution." 

-By Jason Leopold, Dow Jones Newswires; 323-658-3874; 
jason.leopold@dowjones.com ????? ???



To: Members of the Financial Community
> 
> Governor Gray Davis will make an important announcement about the energy
> crisis in California on Thursday at 6:05 PM PST.
> 
> There will be a Financial Analyst conference call/presentation/Q&A with
> the Governor's advisors at 6:45 pm PST/9:45 pm EST. ?Details about the
> call-in number etc. will follow.
> 
> While everyone will wish to speculate on what he will or will not say, I
> can point out that the Governor has been consistent in his goals to
> achieve:
> ?
> 1) significant demand side management (which reduces the State's need for
> expensive power and influences the spot market for power ),
> 2) increased generation supply (to provide reliability and stable prices)
> and 
> 3) restoration of the financial health of the investor-owned utilities.
> 
> All three components are important elements to resolving the energy
> situation in California and will be addressed by the Governor.
> 
> It may go without saying but the situation in California involves many
> moving parts, many constituencies and independent players that need to be
> brought together to resolve a problem that is of a size and scope that no
> one anticipated. ?It certainly appears confusing and chaotic. ?The
> Governor and his team recognize the complexity of the problem and are
> rigorously attempting to move the process to closure. ?He is addressing
> all open issues so that consumers, investors and others can achieve some
> certainty and move on. ?We cannot make all the moving parts stop
> nevertheless, the Governor will provide the leadership needed for a
> resolution. ?
> 
> We look forward to speaking with you tomorrow after the Governor's
> address.
> 
> In the meantime, if you would like to speak to me or have any other
> questions, contact me at the numbers below.
> 
> J 
> 
> Joseph S. Fichera
> Senior Managing Director & CEO
> Saber Partners, LLC
> 
> Banker-Advisor
> Office of Governor Gray Davis
> State of California
> Sacramento, CA ?
> 
> Tel: 916-324-3628
> Cel: 917-862-0619
> 

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