----- Forwarded by Jeff Dasovich/NA/Enron on 03/14/2001 10:52 AM -----

	Jean Munoz <jmunoz@mcnallytemple.com>
	03/14/2001 10:32 AM
		 
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		 cc: 
		 Subject: Senate to investigate market power/price manipulation

Senator Burton and Senator Joe Dunn will "Make an announcement regarding 
potential manipulation in the wholesale energy market" today at 11am in room 
1190 at the state capitol." (See article below for details).

We will keep you posted.

Thanks,
Jean


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


State Senate panel will probe power pricing 

March 14, 2001

By KIMBERLY KINDY
The Orange County Register 


SACRAMENTO A newly formed Senate committee will investigate whether power 
producers manipulated the electricity market and overcharged the state for 
energy.

State Sen. Joe Dunn, D-Santa Ana, will chair the committee, which will 
immediately request records from the power merchants and next month will 
interview employees in an attempt to determine whether allegations of 
collusion among energy producers are true.

"What has really caused me to push for this investigation is their behavior 
mirrors one another,'' Dunn said. "I don't know how that could occur. They 
seem to be clones of each other."

The power producers said the investigation is a waste of time, that they have 
done nothing to manipulate the marketplace.

"They can look all they want,'' said Gary Ackerman, executive director of the 
Western Power Trading Forum, a trade group representing power merchants. 
"They aren't going to find evidence."

Dunn said hearings will be held to review the documents and to conduct the 
interviews in public. The investigation is expected to be completed within 
two months. 

The aim is to identify problems with the structure of the market that may 
have allowed generators to manipulate prices, and to determine whether there 
was any illegal activity.

In the case of market structure flaws, Dunn said senators would work to make 
necessary changes through legislation or by working with federal regulatory 
officials. Any proof of illegal activity would be forwarded to state Attorney 
General Bill Lockyer, whose office is conducting its own investigation.