
Date: Mon, 21 May 2001 07:53:00 -0700 (PDT)
From: steve.hall@enron.com
To: christian.yoder@enron.com, christopher.calger@enron.com,
tim.belden@enron.com, robert.badeer@enron.com,
jeff.richter@enron.com, elizabeth.sager@enron.com,
alan.comnes@enron.com
Subject: $13.4 billion won't cover California power purchases according to
state controller---$4 billion more needed

Calif Controller:State Behind On Long Term Contract Buys Updated: Monday, May
21, 2001 02:59 PM ET
LOS ANGELES (Dow Jones)--California State Controller Kathleen Connell said
Monday that she anticipates the state will need to issue $4 billion in
revenue anticipation notes in February, because a $13.4 billion revenue bond
issue in mid-August will not be enough to cover power purchases.
The state is likely to spend more on spot market purchases than the
administration has anticipated because the price of summer power will be
higher than expected and because the state has secured fewer long-term
contracts than expected, she said.
"The administration projected we'd spend $925 million for long-term contracts
in the first six months (of 2001). We've now spent only $36.4 million on
long-term contracts of a total $5.1 billion spent on energy purchases - less
than 1%," Connell said.
It is unlikely that an additional $890 million in long-term contracts will
flow through her office in the next five weeks, Connell said.
