SILICON VALLEY "ENERGY (fortnight) IN REVIEW"
JULY 2-15
Justin  Bradley, SVMG


ENERGY POLICY ACTIVITIES
Met with strategic partners CMTA/CLECA in Sacramento regarding Direct Access
and the Hertzberg/Edison negotiation which led to joint policy white paper
(draft) of desired policy objectives.  See attached.

Submittal of Real Time Pricing (RTP) support letter to Loretta Lynch and the
Public Utilities Commission - Participated in PUC RTP workshop on July 8 at
10 am.  SVMG was well represented with Energy Committee members from HP,
Infotility, Cargill Salt, Oracle and myself.  Our partnership with the CEC
has been very fruitful on this issue with John Wilson and the Commission
responding positively to each of our major concerns.  We are seeking PUC
approval of this CEC proposed tariff.  See attached letter.

Projections 2001 Conference - On September 28, SVMG and ABAG host a
conference and present a document that provides the forward analysis
foundation for our policy vectors.  With the help of a subcommittee of the
Energy Committee and Energy coordinator Alex Leupp we submitted an outline
and information package to Kathleen Cha of ABAG for the energy section.
Some excellent analysis from Peter Evans is attached.

Annual Bar-be-que - Last Thursday evening SVMG CEOs and over 50 members of
the State Legislature were in attendance the annual SVMG Board BBQ including
Governor Davis, Speaker pro tem Sen. John Burton, Assembly Minority leader
Dave Cox, Majority Speaker of the Assembly Robert Hertzberg, and Secretary
of State Bill Jones.  We were fortunate to be able to have a 90-minute
pre-meeting with Speaker Hertzberg and Speaker Pro Tem Keeley with a select
group of leaders focusing on several topics including energy.  Dr. Woody
ably represented SVMG on the topic.  Had discussion with many of our
representatives on the energy topic including Sen. John Vasconcellos (who
related that Sen. Bowen wants to meet again with our leadership on SB27XX
Direct Access on Friday the 20th), Sen. Bruce McPherson, Speaker Hertzberg,
and Assy. Elaine Alquist to name a few.

Deregulation Restructuring - Legislation is being written that attempts to
integrate all of the energy issues (direct access, distributed generation,
securitize 13.4 billion in energy bonds, proportional distribution of
financial burden, purchase of Edison transmission lines in order to prevent
Southern California Edison bankruptcy).  I am working with our team (Derek
Naten of Roche, John Redding of GE, Joe Desmond of Infotility, and the
addition of our lobbying firm Noteware and Shannon) to make sure Silicon
valley employers and employees are strongly represented.

Telephone conversations with Sen. Bowen on Direct Access- Thanks to Joe
Desmond of Infotility and with John Redding of GE, we had the opportunity to
have speak with Senate Energy and Utilities Committee chair Sen. Debra Bowen
to focus on Direct Access so that energy customers have a choice in the
future and  vital market with services that meet the diversity of our needs
from lowest cost to highest reliability and quality of power.  We have a
follow up meeting with Senator Bowen on the 20th, time to be determined.

CONSERVATION/DEMAND MANAGEMENT
SVMG/NRDC partnership - Planned demand management conference in Cupertino on
August 24 (with Ralph Cavanagh of NRDC, Leslie Hummel Silicon Energy and
Mayor Sandy James of Cupertino) to help us "Lock In" our energy conservation
gains.  Commissioner Art Rosenfeld and Sen. Byron Sher are featured.  See
attached SAVE THE DATE.  We are very honored to have Adrian Ionel, former
President and CEO of eOnline now on personal sabbatical, who has agreed to
coordinate this effort on SVMG's team.

In partnership with Deloitte & Touche and Infotility, submitted to CEC a
propsal entitled "Customer Decision and Risk Models for Demand Response
Strategies - Phase I  Economic Risk Model for Real Time Pricing.  The
partnership is attempting to create an interactive decision tool to help as
many companies decide based on objective financial gain.

ENERGY INFRASTRUCTURE REVIEW
Working Council approved a streamlined approach for Energy Infrastructure
project review.  Thanks to Leslie O'Rourke Garrett of Incite Genomics for a
persuasive presentation and for strategic planning to come up with a more
efficient way to reach conclusions on potential project.  We are working on
two more potential projects, one in San Jose, one in Milpitas brough to us
by Jason Danapoli and Spartan Energy.

ENERGY COMMITTEE
On July 9 at EPRI - Welcomed a Japanese delegation of energy experts seeking
our input to help them avoid the pitfalls California has experienced.
Special thanks to Don Hall of PG&E and Peter Evans for their willingness to
share our wisdom.  Continued thanks to Paul Radcliff and EPRI for their
generosity in hosting SVMG meetings.

Our Energy Expert Barbara Barkovich - had served us with great skill and
distinction over the past 6 months.  With the first phase of our contract
up, it is crucial for us to have her on our side to finish well on our major
issues, particularly the restructuring legislation.  Please review the
attached Return on Investment and call or email your companies renewed
financial support.


LEGISLATIVE SUBCOMMITTEE
Took oppose position on SB85XX which  would sunset the 10% rate discount for
small customers granted under AB 1890.  The 10% discount represents nearly
$400 million in revenue for each of Pacific Gas and Electric (PG&E) and
Southern California Edison (SCE).  Given the current financial distress of
both utilities, removal of this sunset would greatly exacerbate the current
undercollection of the IOUs and would have to be backfilled by other
customer groups.

SPEECHES
Spoke to about 30 members of the Livermore Rotary Club from a Silicon Valley
perspective (filling in for Carl due to illness).

MEDIA RELATIONS
Direct Access - Was interviewed by Channel 2 about black-out notification
that must occur prior to any rolling black-out in the future.  Kudos, once
again, to our Energy Committee for their leadership in developing this
policy.




 - SB85xx.doc 
 - Energy Infrastructure SWAT Team slides WC.doc 
 - Save the Date Energy Conference in Cupertino 1.doc 
 - Industrial White Paper 7-5-011(dot commentsCLEAN).doc 
 - RTP support letter to PUC Lynch.doc 
 - Projections 2001- Evans.doc 
 - Activities Return on Investment of Dr Barkovich 1st half of 2001.doc