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She is the state's top regulator, in charge of regulating utilities, telecommunications, commercial transportation and water companies.
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Before her appointment to the PUC, Lynch was head of Davis's office of Planning and Research.
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The letter says the PUC had a number of opportunities last summer to keep the electricity crisis from spiraling out of control by allowing Edison International (EIX, news, msgs) unit Southern California Edison, PG&E Corp. (PCG, news, msgs) unit Pacific Gas & Electric and Sempra Energy (SRE, news, msgs) unit San Diego Gas & Electric to sign long-term power supply contracts for about $50 a megawatt-hour, nearly $30 lower than the new long-term contracts Davis said the state entered into recently with generators.
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Lynch's failure to "ensure that the commission's Aug. 3, 2000, emergency order on long-term contracts was quickly implemented has placed the state budget at risk for costs now at least 40% higher," the letter said.
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"This hesitancy in a crisis will cost California's economy tens of billions of dollars during the next 20 years."
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The state has spent more than $3 billion since January buying power in the spot market.
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Davis has asked lawmakers for another $500 million from the general fund to continue buying power.
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If the $500 million is granted, the state's commitment to power purchases will surpass $4 billion.
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State Sen. Steve Peace, D-El Cajon, however, said last week that the Senate Budget Committee will deny further requests for funding unless the PUC carves out a revenue stream for the state's Department of Water Resources, the agency that is now buying the bulk of the state's power on behalf of the cash-strapped utilities.
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The PUC was expected to release guidelines last week on rates the DWR can receive from utilities to pay back the general fund and to issue revenue bonds to pay for long-term contracts.
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But the guidelines haven't yet been released.
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Last year, the PUC said the utilities could enter into limited long-term supply contracts to hedge their positions against price spikes.
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But the commission also said it feared if the utilities signed long-term deals with generators, liquidity in the wholesale market would be reduced.
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The Republican lawmakers said the commission is responsible for nearly forcing the utilities into bankruptcy.
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"We have no confidence that Loretta Lynch will play a constructive role in solving the energy crisis in the weeks and months ahead," the letter said.
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"With Wall Street nervous about repayment of the $10 billion in revenue bonds needed to cover the state's energy purchases, the CPUC has been unable to perform an adequate assessment of the investor-owned utilities' financial situation."
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-By Jason Leopold; Dow Jones Newswires;
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Call Hedy at 916.448.8240.
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Best, Jeff
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Thursday and Friday at 10:30 AM.
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Best, Jeff
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Greetings Mr. Newlywed and Ms Bride-to-be!
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(Shewt, I'm gettin' all choked up.) I think I'll need to protest TURN's proposal.
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You folks aware of this?
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Care?
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Best, Jeff
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Yes.
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Dan may we get copy of both Stormin' Norman's initial and TURN's response.
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Thanks alot.
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Best, Jeff
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Thank you very much.
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Thanks (as usual).
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Best, Jeff
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Good deal.
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If there's anything else, just give a holler.
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Best, Jeff
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That's a very funny note.
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I think we ought to "share it" with folks.
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Bill Gang, do you have any objections?
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Jeff
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Here it is darlin'.
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It's an attachment to the main text of the document.
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If you have any questions, or need anything else.
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Don't hesitate.
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Best, Jeff
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Hi David: Could you give me a call to discuss the project when you get a minute.
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I'm starting to move it along.
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Thanks.
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Best, Jeff
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I saw a picture today, and now i know who you remind me of!
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Sue Landwehr: talks like marge, looks like elle mcpherson.
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Hey babe.
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I called you last nite re: ROI model, but only got the answering machine.
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Forward along to me and I'll take a peek and get back to you.
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How's the face doing?
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When do you leave on travel?
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Thanks.
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Let me try to rally the troops.
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Get them to submit something and then maybe you and I can simply sign on.
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Your humble servant, Jeff
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Will do.
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Thanks very much to you both.
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Best, Jeff
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Professor Tasker: I have the distinct (and sinking) feeling that you may not be getting emails that I've sent to you, since over the last 3 weeks I've sent a few and haven't heard back.
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Is the haas account the correct address?
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Best, Jeff
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the voices of dissent have started....
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Did she respond back?
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Did you respond to the Haas address?
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(Man, now I'm REALLY getting paranoid.)
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you get the message class was cancelled last nite before heading over to
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FYI.
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As part of the computer deal Enron bought me for home, I get these ads.
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If there's anything you want (I think the prices are supposed to begood) let me know.
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If it looks like complete crap, please let me know thattoo.
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Wow.
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Very gorgeous, indeed.
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FYI.
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Looks like Peace is rattling the CPUC's cage pretty well.
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Let me knoif you'd like to respond and we can get Jeanne Bennet to throw something together.
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FYI.
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Some more info on the issue from Jeanne.
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I'm in the same boat.
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Somewhat messy.
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Might be useful for everyone to taka look and we can discuss tomorrow morning and determine if we want to fileand what we'd say.
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Best, Jeff To: Jeff Dasovich/Na/Enron@ENRON cc: Christian Yoder/HOU/ECT@ECT Subject: Re: FYI Re Rate Stabilization Hearings---Getting rates secured for I think we should respond, but I am not quite sure what we should say...Iwill read it.
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We're getting a lot of inquiries about Enron's role in California's de-reg history, with a lot of misinformation arising out of Peace's handywork.
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I spent about 3 hours on Friday with a Sac Bee reporter (Dale Kasler).
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He'll be interviewing Skilling on the same topic in a week or so, and he'd like to talk to Steve, too.
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Sue spent time with a NYT reporter discussing the same.
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Some common themes are arising in the questions.
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Thought it would be a good idea to spend 30 minutes discussing those themes and developing our messages to ensure consistency.
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If folks think it would be useful, is there a time this week that we could squeeze in 30 minutes?
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Thanks.
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Best, Jeff
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Greetings: Saw your QF story.
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You were right.
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One never know what the "story du jour" will be.
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You still interested in talking to Steve Kean?
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If you are, when do you talk to Skilling, and would you want to schedule something around that, or sooner?
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