Message-ID: <4924005.1075858691315.JavaMail.evans@thyme>
Date: Thu, 19 Jul 2001 07:58:39 -0700 (PDT)
From: b..sanders@enron.com
To: twanda.sweet@enron.com
Subject: FW: California Update 7-18-2001
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: quoted-printable
X-From: Sanders, Richard B. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=RSANDER>
X-To: Sweet, Twanda </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Tsweet>
X-cc: 
X-bcc: 
X-Folder: \Sanders, Richard B (Non-Privileged)\Sanders, Richard B.\Sent Items
X-Origin: Sanders-R
X-FileName: Sanders, Richard B (Non-Privileged).pst



 -----Original Message-----
From: =09Whitman, Britt =20
Sent:=09Wednesday, July 18, 2001 3:48 PM
To:=09Sanders, Richard B.; Edison, Andrew
Cc:=09Walsh, Kristin
Subject:=09California Update 7-18-2001
Importance:=09High

If you have any questions, please feel free to contact Kristin Walsh at (71=
3) 853-9510 or G. Britt Whitman at (713) 345-4014.

EXECUTIVE SUMMARY
Multiple MOU Plans Debated
California State Budget Faces One Last Hurdle

Budget=20
There is a small possibility that Sen. Burton will not recess the Senate on=
 Thursday unless the Senate passes the budget that the Assembly passed last=
 night (7-17). However a key Democrat, Sen. Sheila Kuehl, has been is in It=
aly and is on a 16 hour return flight. No one knows if she has been told to=
 return and without her presence, two Republican votes are still needed to =
pass any urgency measure for the budget.  Kuehl's vote is crucial if they t=
ake the bill up on Thursday.=20
MOU Mayhem
There are currently three leading MOU plans being resuscitated by the Calif=
ornia House and Senate deliberations.  Senator Burton is hoping to keep the=
 published schedule and adjourn for a month's recess on Thursday evening.  =
Speaker Hertzberg is reportedly not thrilled with leaving until the Edison =
issue is resolved.  However, rumor is that whether or not they recess on Th=
ursday, their adjournment will mark the end of the Second Extraordinary ses=
sion and all XX  bills passed and signed will go into effect in 90 days (al=
l others will be dead).  Although Davis has stressed the urgency of passing=
 a comprehensive "bail-out" plan and even threatened to call an emergency s=
ession to prevent legislators from taking a 30-day recess on Friday, there =
is no clear indication that legislators will comply with this request.     =
=20
Hertzberg's bill 82XX - Of the more obvious differences from Davis MOU,  82=
XX proposes to offer SoCal $300 M less for its transmission lines in additi=
on to penalizing Edison if it fails to act in good faith in closing the dea=
l.  It comes as no surprise that during bill deliberations, SoCal raised ob=
jections to the bill and warned of impending difficulties (bankruptcy) for =
So Cal were the bill left unamended.
The Wright-Richman bill 83XX - We reported last week that 83XX remains the =
only measure fueled by bipartisan support.  AB 83XX was heard in an "inform=
ational" hearing yesterday (7-17) and will be heard again today in the Asse=
mbly Energy Committee.  Assemblyman Rod Wright, the Chairman of the Committ=
ee, presented AB 83xx with Dr. Keith Richman, a Republican Assemblyman from=
 Southern California. They offered 83XX as an Edison bail-out, pure and sim=
ple. Wright was clear to distinguish his bill from 82XX, which he said has =
conservation easements and land requisitions, a renewable portfolio which w=
ill add an additional fee on ratepayers, and reasonable review for long ter=
m contracts. While the chances of the Richman bill being successful appear =
slim, reports that that Hertzberg will try to negotiate elements of his own=
 bill (82XX) as amendments to the Wright/Richman measure suggest that at le=
ast Hertzberg feels Richman's 83XX stands a chance.=20

The Byron Sher bill, SB 78XX (Polanco) - Previously presented by Sen. Polan=
co on behalf of Governor Davis, SB 78XX has received special attention from=
 Senate President, John Burton.  Although it has never been heard by a comm=
ittee, SB 78XX is currently on the Senate floor and ready for a vote. The S=
enate Energy Committee and Senate Appropriations Committee are both schedul=
ed to have informational hearings on this bill today.  Note, the meetings a=
re informational because neither committee has possession of the bill.  The=
se hearings will provide information to committee members, avoid a formal v=
ote, and simultaneously shield Burton/Polanco from claims that the details =
of SB78XX were never released.  The Senate is scheduled to be in session to=
morrow, ostensibly to vote on the state budget and SB 78XX. Given Burton's =
penchant for wanting to keep on schedule to recess tomorrow, there is no gu=
arantee that he will hold the Senate in session once they hear SB 78XX. Thu=
s, the Senate may never even see AB 82XX and AB 83XX unless either or both =
bills are passed out of the Assembly today and get special treatment by Bur=
ton to be heard tomorrow. Burton has previously adjourned the Senate to kee=
p on schedule once they finish their business, even if the Assembly is behi=
nd them.