Message-ID: <54727.1075853237547.JavaMail.evans@thyme>
Date: Sat, 7 Apr 2001 14:50:00 -0700 (PDT)
From: jeff.dasovich@enron.com
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Subject: Outrageous Statement by CA's Attorney General
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----- Message from "Cathy Mar" <Cathy.Mar@DOJ.CA.GOV> on Fri, 6 Apr 2001 
16:24:29 -0700 -----
To:	PRESSLIST@JUSTICE.hdcdojnet.state.ca.us
Subject:	[PRESSLIST] ATTORNEY GENERAL BILL LOCKYER ISSUES STATEMENT IN 
RESPONSE TO PG&E DECISION TO FILE FOR BANKRUPTCY
ATTORNEY GENERAL BILL LOCKYER ISSUES STATEMENT IN RESPONSE TO PG&E DECISION 
TO FILE FOR BANKRUPTCY

(SACRAMENTO) - Attorney General Bill Locker today released the following 
statement regarding Pacific Gas & Electric's decision to file for bankruptcy:

"The uncontrolled increase in electricity prices by generators and marketers 
has claimed another victim with the bankruptcy of one of California's oldest 
businesses. While this is a significant and unwelcome development, our team 
of bankruptcy litigators has been
preparing for several months to defend California taxpayers in the event of a 
utility bankruptcy. This morning, I spoke with a PG&E executive, and he 
personally assured me that the utility will honor its legal obligation to pay 
the state for its purchase of energy and
to repay its renewable energy supplier-creditors ("qualified facilities"). I 
am prepared to enforce those assurances in the courts to the extent 
necessary. Over the last several months, our state attorneys have fought hard 
in the courts to ensure that out-of-state
generators continue to deliver adequate electricity and natural gas supplies 
to Californians in spite of the precarious financial condition of the state's 
two major utilities. The health and safety of Californians and the future of 
our economy require that our state not be left holding the bag for greedy 
business decisions of generators, marketers and utilities. Justice requires 
that those who have reaped unconscionable profits at the expense of 
Californians must pay back what they owe. I will use all the considerable 
resources of the law to help our policymakers keep the lights on and the 
bills affordable for every California home and business, to recover 
California tax and ratepayer dollars that have been illegally or unfairly 
taken, and to punish wrongdoers."

AWARD TO INFORMANTS

"It is possible that one or more members of the public can help with 
information, and if so, the financial reward to such a person or persons 
could be enormous. My office is conducting an aggressive investigation into 
whether energy providers have violated any laws. Over the last four years, 
state and local government agencies have spent billions of dollars in state 
and local taxpayer money to purchase electricity and natural gas. Under 
California false claims law, any person or corporation who obtains state 
taxpayer money by fraud or illegal acts is liable for financial penalties 
that can be as high as three times the actual losses. And anyone who provides 
information leading to the successful prosecution of a false claim action may 
be entitled to a percentage share in that award. Since billions of state 
dollars may be recovered, the award to an informant could potentially range 
from $50 million to the
hundreds of millions of dollars. I am asking any member of the public with 
personal knowledge of any wrongful act which may have resulted in reduction 
in the California supplies or increase in the price of natural gas or 
electricity to contact my office immediately by calling: 1-800-952-5225 (w/in 
CA) or (916) 322-3360 (local or out of state), or e-mail the Attorney 
General's Energy Emergency Task Force at energywhistleblower@doj.ca.gov."

                                                                              
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