*  from Govt Affairs 


---------------------- Forwarded by Jennifer Rudolph/HOU/EES on 05/08/2001 
12:48 PM ---------------------------


Susan J Mara@ENRON
05/08/2001 11:52 AM


This bill now goes to the Assembly.  The Assembly has its own bill -- 128X, 
which is working its way through Committee.  The Senate bill has an $80 
benchmark (above which the 100% tax applies) and the Assembly bill has a $60 
benchmark

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 05/08/2001 09:48 AM -----

	"Chris Micheli" <cmicheli@carpentersnodgrass.com>
	05/07/2001 07:16 PM
		 
		 To: 

SB 1x passed the State Senate late this afternoon by a vote of 25-12.
Senator Soto spoke in support arguing that the money should be returned to 
taxpayers.  The flate rate of the refundable tax credit will be determined by 
the FTB.  Senator Scott said that FERC has failed to act.  This bill will 
regulate the price of electricity in CA.  He said that the PUC will be 
allowed to review and adjust the base price for the tax, and that the PUC 
could allow additional exemptions (is this an unconstitutional delegation of 
authority?).  Also, a long-term contract arrangements are exempt from the 
bill.
Senator Morrow spoke in opposition.  He said that the bill is not about 
relief.  Rather, it redistributes wealth and should be changed to refund the 
money to consumers.
Senator Battin spoke in opposition.  He cited the planned Intergent plant in 
North Palm Springs.  THis bill does not solve the crisis.  It just 
discourages generators from building in this state.
Senator Dunn said that emergency steps must be taken and that he supports 
this bill.  Otherwise, CA's wealth will go out of the state, primarily to 
Texas.
Senator Polanco spoke in support and said that ratepayers are being gouged.  
Billions in profits have been reaped by generators.
Senator McClintock spoke in opposition and said that power plants are not 
being built here and that this bill will stop the construction of plants in 
CA.
Senator Peace spoke in support and said that FERC has failed to enforce the 
law.
Senator Perata spoke in support and said that generators have gotten caught 
red-handed and now need to pay a penalty.
Senator Haynes spoke in opposition and said that the constitution will be 
violated by this bill and that companies will sell to other states, rather 
than California.
Senator Bowen spoke in support of the bill.  She asked why we should have the 
welcome mat our to CA when these companies are charging 300% more in their 
prices then just a year or two ago.  She also indicated that the Legislative 
Counsel has given them an opinion that this bill is constitutional because it 
only applies to the electrons flowing into the state.  Whatever that means?
No Republicans voted for the bill.  No Democrats voted against it.  FInal 
vote was 25-12.
However, if the Assembly or Senate adjourns the Special Session without 
passing this bill and/or AB 128x, then both measures will die.

Chris Micheli, Esq.
Carpenter Snodgrass & Associates
1201 K Street, Suite 710
Sacramento, CA  95814
(916) 447-2251
FAX: (916) 445-5624
EMAIL: cmicheli@carpentersnodgrass.com