Message-ID: <18786694.1075860422667.JavaMail.evans@thyme>
Date: Mon, 9 Apr 2001 09:15:00 -0700 (PDT)
From: susan.mara@enron.com
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Subject: Governor to announce deal with Edison
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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, 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, Steve C Hall, David Leboe, Jay Zoellner, Fatimata Liamidi, Sonia Perez
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Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 04/09/2001 04:09 PM -----

=09Jean Munoz <jmunoz@mcnallytemple.com>
=0904/09/2001 04:48 PM
=09=09=20
=09=09 To: "'Andy Brown (E-mail)'" <ABB@eslawfirm.com>, "'B Brown Andy (E-m=
ail)'"=20
<andybrwn@earthlink.net>, "'Baker Carolyn (E-mail)'"=20
<cabaker@duke-energy.com>, "'Bob Escalante (E-mail)'"=20
<rescalante@riobravo-gm.com>, "'Bob Weisenmiller (E-mail)'"=20
<rbw@mrwassoc.com>, "'Curtis Kebler (E-mail)'"=20
<curtis_l_kebler@reliantenergy.com>, "Dean. Nistetter (E-mail)"=20
<Dean.Nistetter@dynegy.com>, "'Douglas Kerner (E-mail)'" <DKK@eslawfirm.com=
>,=20
"'Greg Blue (E-mail)'" <gtbl@dynegy.com>, "'Jan Smutny-Jones (E-mail)'"=20
<smutny@iepa.com>, "'Jeff Dasovich (E-mail)'" <Jeff.Dasovich@enron.com>,=20
"'Joe Ronan (E-mail)'" <joer@calpine.com>, "'John Larrea (E-mail)'"=20
<john.g.larrea@williams.com>, "'John Stout (E-mail)'"=20
<John_H_Stout@reliantenergy.com>, "'Julee Malinowski-Ball (E-mail)'"=20
<jmball@ns.net>, "'Kassandra Gough (E-mail)'" <kgough@calpine.com>, "'kent=
=20
Palmerton (E-mail)'" <kent.palmerton@williams.com>, "'Lynn Lednicky=20
(E-mail)'" <lale@dynegy.com>, "Marie Moretti (E-mail 2)"=20
<mmoretti@mccabeandcompany.net>, "'Marty Wilson (E-mail)'"=20
<mwilson@pstrategies.com>, "'McNally Ray (E-mail)'"=20
<rmcnally@mcnallytemple.com>, "''Nam Nguyen' (E-mail)'"=20
<nam.nguyen@powersrc.com>, "'Norton Kelli (E-mail)'"=20
<knorton@mcnallytemple.com>, "'Paula Hall-Collins (E-mail)'"=20
<paula.hall-collins@williams.com>, "'Pigott Jack (E-mail)'"=20
<jackp@calpine.com>, "'Richard Hyde (E-mail)'" <rwhyde@duke-energy.com>,=20
"'Roger Pelote (E-mail)'" <roger.pelote@williams.com>, "'Stephanie-Newell=
=20
(E-mail)'" <stephanie-newell@reliantenergy.com>, "'Sue Mara (E-mail)'"=20
<smara@enron.com>, "'Tom Ross (E-mail)'" <tross@mcnallytemple.com>, "Tom=20
Williams (E-mail)" <tcwillia@duke-energy.com>, "'Alex Sugaoka (E-mail)'"=20
<alex.sugaoka@uaecorp.com>, "'Bill Carlson (E-mail)'"=20
<william_carlson@wastemanagement.com>, "'Bill Woods (E-mail)'"=20
<billw@calpine.com>, "'Bob Ellery (E-mail)'" <bellery@spi-ind.com>, "'Bob=
=20
Gates (E-mail)'" <bob.gates@enron.com>, "'Cody Carter (E-mail)'"=20
<cody.carter@williams.com>, "'Curt Hatton (E-mail)'"=20
<Curt.Hatton@gen.pge.com>, "'David Parquet'" <david.parquet@enron.com>,=20
"'Dean Gosselin (E-mail)'" <dean_gosselin@fpl.com>, "'Doug Fernley (E-mail)=
'"=20
<fernley.doug@epenergy.com>, "'Duane Nelsen (E-mail)'"=20
<dnelsen@gwfpower.com>, "'Ed Tomeo (E-mail)'" <ed.tomeo@uaecorp.com>,=20
"'Eileen Koch (E-mail)'" <eileenk@calpine.com>, "'Eric Eisenman (E-mail)'"=
=20
<eric.eisenman@gen.pge.com>, "'Frank DeRosa (E-mail)'"=20
<frank.derosa@gen.pge.com>, "Frazier Blaylock (E-mail)"=20
<frazier_blaylock@ogden-energy.com>, "'Hap Boyd (E-mail)'"=20
<Hap_Boyd@enron.com>, "'Hawks Jack (E-mail)'" <jack.hawks@gen.pge.com>, "'J=
im=20
Willey (E-mail)'" <elliottsa@earthlink.net>, "'Joe Greco (E-mail)'"=20
<jgreco@caithnessenergy.com>, "'Jonathan Weisgall (E-mail)'"=20
<jweisgall@aol.com>, "'Kate Castillo (E-mail)'" <CCastillo@riobravo-gm.com>=
,=20
"'Kelly Lloyd (E-mail)'" <kellyl@enxco.com>, "'Ken Hoffman (E-mail)'"=20
<khoffman@caithnessenergy.com>, "'Kent Fickett (E-mail)'"=20
<kfickett@usgen.com>, "'Lynn Lednicky (E-mail)'"=20
<lynn.a.lednicky@dynegy.com>, "'Marty McFadden (E-mail)'"=20
<marty_mcfadden@ogden-energy.com>, "'Paula Soos'"=20
<paula_soos@ogden-energy.com>, "'Randy Hickok (E-mail)'"=20
<rjhickok@duke-energy.com>, "Rick S. Koebbe (E-mail)"=20
<rskoebbe@powerworksinc.com>, "'Rob Lamkin (E-mail)'"=20
<rllamkin@seiworldwide.com>, "'Ross Ain (E-mail)'" <ain@worldnet.att.net>,=
=20
"'Steve Iliff'" <siliff@riobravo-gm.com>, "'Steve Ponder (E-mail)'"=20
<steve_ponder@fpl.com>, "'Tony Wetzel (E-mail)'" <twetzel@thermoecotek.com>=
,=20
"'William Hall (E-mail)'" <wfhall2@duke-energy.com>,=20
<trusso@mcnallytemple.com>, <sadlersa@earthlink.net>, <mstultz@epsa.org>,=
=20
<rtemple@mcnallytemple.com>, <tracy.fairchild@edelman.com>,=20
<megan.beiser@edelman.com>, <deborah.fiorito@dynegy.com>, <lchurch@epsa.org=
>,=20
Katie Kaplan <kaplan@iepa.com>, <tcwillia@duke-energy.com>,=20
<rwhyde@duke-energy.com>, <tmcmorrow@manatt.com>
=09=09 cc:=20
=09=09 Subject: Governor to announce deal with Edison

The Governor is currently holding a press conference to announce deal with=
=20
Edison.   We will keep you posted with details.  IEP will be responding.

Thanks,
Jean


--=20
Jean Munoz
McNally Temple Associates
916-447-8186
916-447-6326 (fx)

________________
Calif Gov. To Announce Deal With SoCal Ed-Spokesman    =20
Updated: Monday, April 9, 2001 05:37 PM=01;ET   =20

=01;
NEW YORK (Dow Jones)--California Gov. Gray Davis will announce a final deal=
=20
with Edison International (EIX, news, msgs) unit Southern California Edison=
=20
to buy the utility's power lines, Davis' spokesman said Monday afternoon.=
=20

Monday's deal will include four elements of Davis' speech delivered live=20
statewide Thursday, said Davis spokesman Steve Maviglio.=20


Davis spoke about an alternative rate hike plan Thursday to the one ordered=
=20
by state regulators two weeks ago. Although Davis' rate increase is lower=
=20
than the overal 27% increase ordered by the California Public Utilities=20
Commission, the governor's plan allows the utility to collect a portion of=
=20
the rate increase that will be used to restructure $5 billion in=20
undercollected power costs.=20


Davis said in his five-minute statewide address Thursday that if the state=
=20
were to buy SoCal Ed's transmission lines, the utility would have to agree =
to=20
drop its federal lawsuit against the PUC, where it sought to recoup the=20
billions of dollars in undercollected power costs from ratepayers retroacti=
ve=20
to August 2000, and sell the state power from its hydroelectric plants at=
=20
cost for 10 years.=20

Davis announced an agreement in principle with SoCal Ed seven weeks ago to=
=20
buy the utility's transmission lines for $2.76 billion and the two have=20
negotiated during that time to reach a final agreement.=20

A spokesman at the utility would not comment.=20

A day after Davis' five-minute address, PG&E Corp. (PCG, news, msgs) Pacifi=
c=20
Gas & Electric filed for Chapter 11 bankruptcy protection because=20
negotiations with the state over a similar deal were "going nowhere."=20

Harvey Rosenfield, executive director of consumer group Foundation for=20
Taxpayer and Consumer Rights in Santa Monica, said Davis' announcement is a=
=20
massive "bailout" for SoCal Ed.=20

Rosenfield said he will push for a ballot initiative next year to undo the=
=20
state's six-year-old deregulation debacle.=20

-By Jason Leopold; Dow Jones Newswires; 201-938-5905;=20
jason.leopold@dowjonews.com=20



Monday April 9, 6:06 pm Eastern Time

Calif. Gov. Davis, SoCal Edison to announce deal

(Adds background,

LOS ANGELES, April 9 (Reuters) - California Governor Gray Davis and Souther=
n=20
California Edison have reached an agreement after a weekend of harried talk=
s=20
aimed at a deal that would provide state money to the cash-strapped utility=
=20
in exchange for its transmission lines, a spokesman for the governor said.
ADVERTISEMENT

Davis and John Bryson, the chairman of Southern California Edison parent=20
Edison International (NYSE:EIX - news), scheduled a news conference from 3=
=20
p.m. PDT (6 p.n. EDT) in Los Angeles to discuss the agreement, the governor=
's=20
office said. No further details were immediately available.

The announcement came as bankruptcy proceedings began for the state's large=
st=20
utility, Pacific Gas & Electric, a unit of PG&E Corp. (NYSE:PCG - news),=20
which on Friday sought protection for creditors after declaring that it had=
=20
been unable to reach an accord with Davis.

Shares in Edison International closed up 8 percent on Monday on expectation=
s=20
that the two sides were close to reaching a deal under which the state woul=
d=20
reportedly pay billions for the company's transmission lines.

Southern California Edison power transmission grid is a 12,000-mile (19,200=
=20
km) web of high voltage lines covering much of the southern region of the=
=20
state.

The lines carry electricity from power plants to substations, where the=20
voltage is reduced to a level that can be moved safely into neighborhood=20
distribution lines to homes and businesses.

The utility's 88,000-miles (105,600 km) of distribution lines serve about 1=
1=20
million Southern Californians.

The utility has carried the lines at a book value of $1.2 billion. Under a=
=20
the terms of a preliminary deal, the state had proposed buying the lines fo=
r=20
$2.76 billion, or 2.3 times the book value.