Some AReM members met with the SJ Mercury News Editorial Board and the 
editorial below is the result

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 06/27/2001 01:28 PM -----

	"Fairchild, Tracy" <tracy.fairchild@edelman.com>
	06/27/2001 12:27 PM
		 
		 To: "Allen, Stevan" <stevan.allen@edelman.com>, AReM <arem@electric.com>, 
"Douglas Oglesby (E-mail) (E-mail)" <doao@chevron.com>, "Erica Manuel 
(E-mail)" <erica.manuel@edelman.com>, "Fairchild, Tracy" 
<tracy.fairchild@edelman.com>, "Jeffrey Hanson (E-mail) (E-mail)" 
<jeff.hanson@phaser.com>, "Joseph Alamo (E-mail) (E-mail)" 
<jalamo@enron.com>, Megan Beiser <megan.beiser@edelman.com>, "'Robert Morgan' 
(E-mail)" <rmorgan@newenergy.com>, "Warner, Jami" <jami.warner@edelman.com>
		 cc: "Warner, Jami" <jami.warner@edelman.com>
		 Subject: Media Coverage of Direct Access News Conference


Hello AReMers:

Below you will find the list of media outlets that covered our news
conference yesterday.  In addition to media present at the conference, we
also had 12 reporters listening in via teleconference (only six asked
questions).  I am attaching the stories that we have already found; we'll
send more as they are published today and throughout the week.

The SJ Merc editorial also ran today (it's excellent) and we're keeping an
eye out for the Bee editorial and the possibility that Bill Stall of the LA
Times may write on this issue.  He was at the conference but has made only
neutral comments about whether he'll write anything.


Orange County Register--Kate Berry
Wall Street Journal--Rebecca Smith, John Emshwiller and Mitchel Benson
Associated Press--Karen Gaudette
San Jose Mercury News--John Woolfork, Mike Bazeley
North County Times--Dennis Devine
San Diego Union Tribune--Ed Mendel
San Francisco Chronicle--Greg Lucas, Bernadette Tansey (this story will
probably run on Friday)
Los Angeles Times--Bill Stall
Bloomberg News--Daniel Taub
California Energy Markets--JA Savage
Electric Power Daily--Ethan Howland
Restructuring Today--George Spencer
Natural Gas Intelligence--Richard Nemec
Capitol Public Radio (NPR)
KFBK Radio--Mike Ward
PacSat News Satellite

 <<NGI Daily 2001June27.pdf>>  <<rt010627.pdf>>


Even better than expected ....
Published Wednesday, June 27, 2001, in the San Jose Mercury News
EDITORIAL

The opinion of the Mercury News
PUC should keep consumers plugged in to power choices
AT the beginning, the restructured California electricity market was
supposed to include competition among sellers of electricity -- offering
green power or cheaper power -- not just competition among generators.
As things played out, retail competition was nearly smothered. Now, with the
state buying electricity on behalf of utilities, it could take a further
blow.
State officials are leery of letting customers go to other suppliers now
that the state will buy huge amounts of electricity over the next decade.
The Public Utilities Commission Thursday might suspend ``direct access,''
the ability of consumers large and small to cut their own deals with
electricity suppliers, instead of being forced to buy through the
state/utilities.
The PUC should leave it alone. Instead, the Legislature should continue
discussing ways of revitalizing direct access without leaving the state with
long-term contracts and not enough customers.
Ultimately, the state should get out of the electricity business. Keeping
retail competition alive is one avenue of escape.

********************************************************
There's a slightly negative zinger at the very end, but overall a balanced
story.
Published Wednesday, June 27, 2001, in the San Jose Mercury News
CALIFORNIA'S ENERGY CRISIS
PUC likely to call a halt to shopping for power
BY MICHAEL BAZELEY <mailto:mbazeley@sjmercury.com>

AND JOHN WOOLFOLK <mailto:jwoolfolk@sjmercury.com>
Mercury News
State regulators Thursday are expected to pull the plug on electricity
deregulation's core feature: the ability of customers to shop around for
alternative power.
After July 1, residential and business customers would no longer be allowed
to shop for a new electricity provider under a measure expected to be
approved by the California Public Utilities Commission.
State leaders fear that after stepping in and buying premium-priced power to
avoid blackouts this year, big businesses will flee for a better deal,
sticking small consumers with the government's energy bill. Those consumers
would then face higher rates, causing even more to flee.
``You create a death spiral,'' said Sen. Debra Bowen, D-Redondo Beach.
Business leaders, alternative energy providers and some state officials are
desperately trying to head off the move, saying they've saved a bundle on
energy through the ``direct access'' option of bypassing the major
utilities.
``While we're coping with the rate increase, we think direct access is the
best way for us to manage the cost of energy,'' said Dominic DiMare,
legislative advocate of the California Chamber of Commerce.
``It leads to market discipline as well as innovation,'' DiMare said.
Supporters argue the state, which approved a record $13.4 billion in bonds
to cover power costs, can guarantee payment without killing off customer
choice.
They backed an alternative proposal Tuesday by utilities Commissioner
Richard Bilas in which customers would pay a charge to cover the state's
energy bonds, regardless of their electricity provider. Customers already
pay similar charges to cover an array of costs from nuclear decommissioning
to conservation programs.
``It still gives people the opportunity to buy energy that might not
necessarily be cheaper, but that meets their needs more,'' said Rick
Counihan, spokesman for Green Mountain Energy, which markets power from
renewable sources such as solar and wind.
But even Bilas gives his proposal long odds of approval, saying ``If I were
a betting man'' he'd say his plan ``would go down.''
The ability to shop for power was the impetus for the state's 1996
deregulation bill. The architects of deregulation -- led by business groups
-- believed that if customers could buy power directly from producers, it
would promote competition and drive down prices.
It never happened.
Wholesale power costs soared, and that, along with a host of other issues,
drove companies out of the state, forcing tens of thousands of consumers
back into the arms of utilities.
Now, though, with significantly higher electric rates going into effect this
month, choice is looking more attractive than ever to big businesses. Joined
by alternative power companies, they are trying to push a bill through the
Legislature that would set up a framework for continued choice.
``Manufacturers live and die by the ability to cut costs,'' said Gino
DiCaro, spokesman for the California Manufacturers and Technology
Association. ``If they have an opportunity to save money, we don't feel
there's any reason that should be taken away.''
That type of freedom raises a host of thorny issues. The state is now buying
power on behalf of utilities and entering into dozens of long-term power
contracts. If businesses and residential users flee the system, the state
could be left with a surplus of costly power and fewer users to pay for it.
That, in turn, could mean higher rates for the remaining users.
Bowen is trying to address these issues in a bill that would make customers
pay when they leave the system. Her bill also would allow users to go into
the market only during annual enrollment periods, and it would limit the
amount of power that could be bought on the open market.
Business groups are fighting those provisions.

Contact Michael Bazeley at mbazeley@sjmercury.com
<mailto:mbazeley@sjmercury.com> or (415) 434-1018.



Tracy Fairchild
Senior Account Supervisor
Edelman Public Relations Worldwide
(916) 442-2331
tracy.fairchild@edelman.com



 - NGI Daily 2001June27.pdf
 - rt010627.pdf