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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: gamesmistress who wrote (3302)	4/13/2001 10:44:01 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 23153

Damage control!! That article puzzled me because it was so "out of whack" with what is happening out there. Here is the other side of the story and IMHO SDG&E now has egg on their face. Someone at SDG&E should lose their job over this one, probably Debra Reed. Dynegy was clearly within their rights and SDG&E wasn't. biz.yahoo.com Letter From Dynegy President and COO Steve Bergstrom to San Diego Gas & Electric Chairman Stephen Baum HOUSTON--(BUSINESS WIRE)--April 12, 2001--Following is the full-text (not excerpted) version of a letter sent today to San Diego Gas & Electric (SDG&E) by Dynegy Inc. President and Chief Operating Officer Stephen W. Bergstrom: Mr. Stephen Baum Chairman and CEO San Diego Gas & Electric 8330 Century Park Court San Diego, CA 92123-1530 Dear Steve: I am disappointed by the letter I just received from San Diego Gas & Electric ("SDG&E") President Debra Reed. That letter seriously mischaracterizes the conversation you and I had yesterday. It also incorrectly references language from a letter Dynegy sent to SDG&E today. To make matters worse, SDG&E simultaneously issued a news release selectively quoting from Ms. Reed's letter before I even had an opportunity to read it. First, contrary to the assertion in Ms. Reed's letter, Dynegy Power Marketing Inc. (as scheduling coordinator for Cabrillo II LLC, "Dynegy") has not asked SDG&E to ignore lawful ISO orders. As you know, last week, both the U.S. Court of Appeals for the 9th Circuit and the Federal Energy Regulatory Commission clarified, in no uncertain terms, that the ISO may not compel generators to provide energy to the ISO unless the ISO can provide a creditworthy buyer. After requesting, and not receiving, credit assurances from the ISO, and in accordance with the FERC order, Dynegy has restricted sales through the ISO to transactions which involve a creditworthy purchaser. The ISO cannot lawfully compel Dynegy or any other market participant to sell without providing a creditworthy buyer. Second, Dynegy did not instruct SDG&E to shut down generating units, nor did we suggest that we would not make power available to creditworthy buyers. It has always been Dynegy's practice to make the output of its California generation facilities available for sale to meet the State's electricity needs. In fact, last month, Dynegy executed a long-term agreement with the California Department of Water Resources to sell up to 2,300 MW of electricity (substantially all of West Coast Power's(a) generating capacity) to California over the next three-and-a-half years. Contrary to your press release, the full output of the Cabrillo units is available to any creditworthy buyer, including SDG&E. We have reaffirmed this point with both the ISO and the California Department of Water Resources. Finally, I will gladly discuss any concerns that you may have. We continue to believe the best way to address California's energy situation is to resist the urge to sensationalize normal business proceedings. Such actions only serve to generate unnecessary controversy and misinterpretation, and thwart the efforts of all parties to work together to ensure the State's long-term energy needs are met. Cordially, Stephen W. Bergstrom President and Chief Operating Officer