Message-ID: <368142.1075860360468.JavaMail.evans@thyme>
Date: Wed, 21 Mar 2001 08:12:00 -0800 (PST)
From: susan.mara@enron.com
To: alan.comnes@enron.com, angela.schwarz@enron.com, beverly.aden@enron.com, 
	bill.votaw@enron.com, brenda.barreda@enron.com, 
	carol.moffett@enron.com, cathy.corbin@enron.com, 
	chris.foster@enron.com, christina.liscano@enron.com, 
	christopher.calger@enron.com, craig.sutter@enron.com, 
	dan.leff@enron.com, debora.whitehead@enron.com, 
	dennis.benevides@enron.com, don.black@enron.com, 
	douglas.huth@enron.com, edward.sacks@enron.com, 
	eric.melvin@enron.com, erika.dupre@enron.com, evan.hughes@enron.com, 
	fran.deltoro@enron.com, gayle.muench@enron.com, 
	ginger.dernehl@enron.com, gordon.savage@enron.com, 
	harold.buchanan@enron.com, harry.kingerski@enron.com, 
	iris.waser@enron.com, james.steffes@enron.com, james.lewis@enron.com, 
	james.wright@enron.com, jeff.messina@enron.com, 
	jeremy.blachman@enron.com, jess.hewitt@enron.com, 
	joe.hartsoe@enron.com, karen.denne@enron.com, kathy.bass@enron.com, 
	kathy.dodgen@enron.com, ken.gustafson@enron.com, 
	kevin.hughes@enron.com, leasa.lopez@enron.com, 
	leticia.botello@enron.com, mark.muller@enron.com, 
	marsha.suggs@enron.com, marty.sunde@enron.com, 
	meredith.eggleston@enron.com, michael.etringer@enron.com, 
	michael.mann@enron.com, michelle.cisneros@enron.com, 
	mpalmer@enron.com, neil.bresnan@enron.com, neil.hong@enron.com, 
	paul.kaufman@enron.com, richard.zdunkewicz@enron.com, 
	richard.leibert@enron.com, richard.shapiro@enron.com, 
	rita.hennessy@enron.com, robert.badeer@enron.com, 
	rosalinda.tijerina@enron.com, sandra.mccubbin@enron.com, 
	sarah.novosel@enron.com, scott.gahn@enron.com, 
	scott.stoness@enron.com, sharon.dick@enron.com, skean@enron.com, 
	susan.mara@enron.com, tanya.leslie@enron.com, tasha.lair@enron.com, 
	ted.murphy@enron.com, terri.greenlee@enron.com, tim.belden@enron.com, 
	tony.spruiell@enron.com, vicki.sharp@enron.com, 
	vladimir.gorny@enron.com, wanda.curry@enron.com, 
	william.bradford@enron.com, jubran.whalan@enron.com, 
	triley@enron.com, richard.sanders@enron.com, 
	robert.williams@enron.com, dwatkiss@bracepatt.com, 
	rcarroll@bracepatt.com, donna.fulton@enron.com, gfergus@brobeck.com, 
	kathryn.corbally@enron.com, bruno.gaillard@enron.com, 
	linda.robertson@enron.com, ren@enron.com, lazure@enron.com, 
	michael.tribolet@enron.com, phillip.allen@enron.com, 
	christian.yoder@enron.com, jklauber@llgm.com, 
	tamara.johnson@enron.com, mary.hain@enron.com, greg.wolfe@enron.com, 
	jeff.dasovich@enron.com, dirk.vanulden@enron.com, 
	steve.walker@enron.com, james.wright@enron.com, mike.smith@enron.com, 
	richard.shapiro@enron.com, leslie.lawner@enron.com, 
	robert.neustaedter@enron.com, steve.walton@enron.com, 
	psmith3@enron.com, mjackso7@enron.com, janel.guerrero@enron.com, 
	mark.fillinger@enron.com, jennifer.rudolph@enron.com, 
	martin.wenzel@enron.com, wgang@enron.com, joseph.alamo@enron.com, 
	tracy.ngo@enron.com, ray.alvarez@enron.com
Subject: State Controller Kathleen Connell Press Conference
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
X-From: Susan J Mara
X-To: Alan Comnes, Angela Schwarz, Beverly Aden, Bill Votaw, Brenda Barreda, Carol Moffett, Cathy Corbin, Chris H Foster, Christina Liscano, Christopher F Calger, Craig H Sutter, Dan Leff, Debora Whitehead, Dennis Benevides, Don Black, Douglas Huth, Edward Sacks, Eric Melvin, Erika Dupre, Evan Hughes, Fran Deltoro, Gayle W Muench, Ginger Dernehl, Gordon Savage, Harold G Buchanan, Harry Kingerski, Iris Waser, James D Steffes, James W Lewis, James Wright, Jeff Messina, Jeremy Blachman, Jess Hewitt, Joe Hartsoe, Karen Denne, Kathy Bass, Kathy Dodgen, Ken Gustafson, Kevin Hughes, Leasa Lopez, Leticia Botello, Mark S Muller, Marsha Suggs, Marty Sunde, Meredith M Eggleston, Michael Etringer, Michael Mann, Michelle D Cisneros, mpalmer@enron.com, Neil Bresnan, Neil Hong, Paul Kaufman, Richard L Zdunkewicz, Richard Leibert, Richard Shapiro, Rita Hennessy, Robert Badeer, Rosalinda Tijerina, Sandra McCubbin, Sarah Novosel, Scott Gahn, Scott Stoness, Sharon Dick, skean@enron.com, Susan J Mara, Tanya Leslie, Tasha Lair, Ted Murphy, Terri Greenlee, Tim Belden, Tony Spruiell, Vicki Sharp, Vladimir Gorny, Wanda Curry, William S Bradford, Jubran Whalan, triley@enron.com, Richard B Sanders, Robert C Williams, dwatkiss@bracepatt.com, rcarroll@bracepatt.com, Donna Fulton, gfergus@brobeck.com, Kathryn Corbally, Bruno Gaillard, Linda Robertson, Ren, Lazure, Michael Tribolet, Phillip K Allen, Christian Yoder, jklauber@llgm.com, Tamara Johnson, Mary Hain, Greg Wolfe, Jeff Dasovich, Dirk vanUlden, Steve Walker, James Wright, Mike D Smith, Richard Shapiro, Leslie Lawner, Robert Neustaedter, Steve Walton, psmith3@enron.com, mjackso7@enron.com, Janel Guerrero, Mark Fillinger, Jennifer Rudolph, Martin Wenzel, wgang@enron.com, Joseph Alamo, Tracy Ngo, Ray Alvarez
X-cc: 
X-bcc: 
X-Folder: \Mary_Hain_Aug2000_Jul2001\Notes Folders\All documents
X-Origin: Hain-M
X-FileName: mary-hain.nsf

A report from ARM's PR firm to the ARM members.

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 03/21/2001 04:12 PM -----

	"Beiser, Megan" <Megan.Beiser@edelman.com>
	03/21/2001 03:00 PM
		 
		 To: "Aaron Thomas (E-mail) (E-mail)" <athomas@newenergy.com>, "Andrea Weller 
(E-mail) (E-mail)" <aweller@sel.com>, "andrew Chau (E-mail) (E-mail)" 
<anchau@shellus.com>, "Bill Chen (E-mail) (E-mail)" <bchen@newenergy.com>, 
"Douglas Oglesby (E-mail) (E-mail)" <doao@chevron.com>, "Fairchild, Tracy" 
<tracy.fairchild@edelman.com>, "Jeffrey Hanson (E-mail) (E-mail)" 
<jeff.hanson@phaser.com>, "jennifer Chamberlin (E-mail) (E-mail)" 
<jnnc@chevron.com>, "john Barthrop (E-mail) (E-mail)" 
<jbarthrop@electric.com>, "John Leslie (E-mail) (E-mail)" <jleslie@luce.com>, 
"Joseph Alamo (E-mail) (E-mail)" <jalamo@enron.com>, "Manuel, Erica" 
<Erica.Manuel@edelman.com>, "'Michael Nelson' (E-mail)" 
<mnelson@electric.com>, "Peter Bray (E-mail) (E-mail)" <pbray@newpower.com>, 
"Rebecca Schlanert (E-mail) (E-mail)" <rschlanert@electric.com>, "Richard 
Counihan (E-mail) (E-mail)" <rick.counihan@greenmountain.com>, "'Robert 
Morgan' (E-mail)" <rmorgan@newenergy.com>, "Sue Mara (E-mail) (E-mail)" 
<smara@enron.com>, "Allen, Stevan" <stevan.allen@edelman.com>, 
arm@phaser.com, "brbarkovich@earthlink.net" <bbarkovich@earthlink.net'>, 
cra@calretailers.com, dennis.flatt@kp.org, dhunter@smithandkempton.com, 
djsmith@smithandkempton.com, Dominic.DiMare@calchamber.com, 
drothrock@cmta.net, gharrison@calstate.edu, hgovenar@govadv.com, 
jackson_gualco@gualcogroup.com, ken_pietrelli@ocli.com, kgough@calpine.com, 
kmccrea@sablaw.com, kmills@cfbf.com, lhastings@cagrocers.com, mday@gmssr.com, 
mmoretti@calhealth.org, nplotkin@tfglobby.com, randy_britt@robinsonsmay.com, 
richard.seguin@kp.org, RochmanM@spurr.org, rrichter@calhealth.org, 
sgovenar@govadv.com, smccubbi@enron.com, spahnn@hnks.com, theo@ppallc.com, 
vincent.stewart@ucop.edu, vjw@ceert.org, "Warner, Jami" 
<jami.warner@edelman.com>, wbooth@booth-law.com, wbrown@lhom.com, 
wlarson@calstate.edu
		 cc: 
		 Subject: State Controller Kathleen Connell Press Conference



> State Controller Kathleen Connell held a press conference today to voice
> her concerns over electricity power purchases' effect on the State's
> general fund and in response to a letter received March 12 from Department
> of Finance Director Tim Gage and Chief Legislative Analyst Elizabeth Hill
> requesting a transfer of money from the General Fund.
> 
> Connell stated that Current financial information related to the purchase
> of electricity and the general fund is as follows:
> *State's general fund surplus has dropped from $8.5 billion in January to
> a current estimated level of $3.2 billion
> *Receipt of a letter from the Department of Finance Director and the Chief
> Legislative Analyst requesting an additional transfer of $5.6 billion to
> the Special Fund for Economic Uncertainties to cover power purchases
> *To cover this transfer, Connell said the state would have to borrow $2.4
> billion
> *Connell: "We started this year with a generous budget surplus; the energy
> crisis has taken much of that away, and this transfer on top of the
> electricity purchases would put the [General] fund at risk."
> *Debt issuance has not occurred to reimburse the General Fund for power
> purchases, while disbursements from the General Fund increase daily
> 
> Controller Connell sent a letter to the Governor today, calling for the
> following steps to be taken:
> 1. DWR to notify the Controller's office of any purchases made and any
> contracts negotiated to date
> 2. DWR to notify the Controller's office of any future purchases and
> contracts within 7 days, regardless of when the invoices are submitted
> 3. Information on purchases in excess of $55 million  should be submitted
> within 24 hours
> 4. DWR should prepare new General Fund cash flow estimates for the next 30
> and 60 days, and for the end of the fiscal year
> 5. DWR should take action to ensure that bond sales are completed by the
> end of May 2001
> 
> The Controller is also ordering an audit of the DWR resources to determine
> the amount of money being spent by the Department.  Currently, Connell
> said, "I have to rely on press reports as valid to determine the amount of
> money spent in power purchases."  She said she needs "acknowledgement of
> the total amount of liabilities made" by DWR. 
> 
> Megan Beiser
> Assistant Account Executive
> Edelman Public Relations Worldwide, Sacramento
> Phone: (916) 442-2331
> Fax: (916) 447-8509
> 
