Please add Shelley Corman in GPG  to distribution lists on all California 
issues related to crisis. Thanks.


From: Gavin Dillingham@ENRON_DEVELOPMENT on 09/06/2000 10:01 PM
To: joe Hartsoe@ENRON, Sandra McCubbin@EES, Susan Mara@EES, Paul Kaufman@ECT, 
Karen Denne@ENRON, Jeff Dasovich@EES, Mark Palmer@ENRON, James D Steffes@EES, 
Richard Shapiro@EES, Elizabeth Linnell@EES, Jeannie Mandelker@ECT, 
filuntz@aol.com, Mark Schroeder@ECT, Peter Styles@ECT, Liz@luntz.com, Mona L 
Petrochko@EES, Peggy Mahoney@EES, Nicholas O'Day/AP/Enron@Enron, Mike 
Dahlke/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rob Bradley@ENRON
cc:  
Subject: California governor signs 2 measures to deal with power crisis 


California governor signs 2 measures to deal with power crisis 
By SCOTT LINDLAW 
Associated Press Writer 
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09/06/2000 
Associated Press Newswires 



Copyright 2000. The Associated Press. All Rights Reserved. 
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SACRAMENTO, Calif. (AP) - Legislation meant to ease the burden of power rate 
spikes in Southern California and help avert future energy shortages in the 
state were signed into law Wednesday by Gov. Gray Davis. 
One measure spreads energy price increases over several years, and the other 
speeds the approval process for new power plants. Davis deferred action on a 
third, politically delicate bill, which would use taxpayer money to defray 
the costs of rate increases in excess of 10 percent. 
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"This is not the last step we have to take to solve this problem, but it's a 
very important first step," the Democrat said. 
Opponents said the governor was approving merely a stop-gap solution for the 
state's energy crisis. 
"It is a quick political fix that puts on layaway today's high energy costs 
until 2003 or 2004," said Doug Kline, a spokesman for San Diego Gas and 
Electric. "The law is designed to get the politicians past the next 
election." 
Both measures would take effect immediately if they receive endorsement from 
the Public Utilities Commission, which meets Thursday, the governor's office 
said. 
San Diego residents have seen their electric bills soar since rates were 
deregulated in June. Deregulation was meant to lower prices, but demand for 
electricity has outstripped supply because of a growing population, a booming 
high-tech economy, and less power available from neighboring states that 
haven't deregulated. 
The utility commission last month cut rates for most San Diego residents by 
43 percent in response to outcry over rising prices. 
Under the first measure, rates for residential users would be capped at 6.5 
cents per kilowatt hour, dropping the average monthly residential utility 
bill from $120 to $68. Customers would receive rebates for energy use for 
which they were charged more than 6.5 cents per kilowatt hour after June 1. 
The measure seeks to avert causing San Diego Gas and Electric losses, but the 
company said customers would face rate hikes in 2003 or 2004 to make up for 
projected losses of $839 million stemming from the new law. 

AP Photos SC103-104