alliance info alert dear generation power marketing executive following week alliance express newsletter special announcement regarding proposed action financial accounting standards board fasb fasb 133 fasb considering exception statement financial accounting standards sfas 133 exempt energy companies requirement account capacity contracts derivatives vote exception would result significant increase earnings volatility raises important concerns energy suppliers attached summary issue board expected vote issue may 2001 eei taking steps appraise fasb concerns company cfo would like information effort please contact richard mcmahon executive director alliance energy suppliers rmcmahon eei org 202 508 5571 alliance energy suppliers express april 25 2001 inside washington federal affairs bill repealing puhca approved senate committee senate banking committee today approved 206 bill repeals public utility holding company act 1935 bill would repeal puhca transfer oversight public utility holding companies securities exchange commission federal energy regulatory commission appropriate state agencies 206 approved two amendments offered sen mike enzi r wy first amendment would establish electric energy market competition task force study competition wholesale retail market electric energy united states task force would made representatives ferc department justice federal trade commission well non voting representatives department agriculture securities exchange commission amendment also contained provision co sponsored sen paul sarbanes md would preserve ferc authority require energy rates reasonable include pass holding company costs unrelated energy another amendment offered sen jon corzine nj initiated study general accounting office success federal state governments preventing anticompetitive practices public utility holding companies promoting competition efficient energy markets institute tax agreement public power introduced hill tax agreement eei reached american public power association appa large public power council lppc introduced house bill hr 1459 contains provisions measure hr 4971 technical corrections introduced 106 th congress hr 1459 introduced rep j hayworth r az nine original co sponsors ways means committee hr 1459 contains four key provisions tax code changes 1 tax free sale spin transmission assets rto allowed 2 nuclear decommissioning laws adapted competitive market allowing deductions trust fund longer subject cost service ratemaking 3 contributions aid construction ciac tax interconnections transmission distribution facilities eliminated 4 private use tax rules changed permit open access transmission distribution facilities measure referred house ways means committee eei urged congress act without delay moving forward enactment help encourage vigorous fair competitive environment institute noted legislation incorporated 389 senate energy committee chairman frank murkowski r ak energy security bill stand alone legislation could also introduced hearings expected held senate finance house ways means committees probably consideration president bush individual tax proposal administration ferc white house seeks 2 trillion budget fiscal year 2002 president bush last week transmitted 2 trillion fiscal year 2002 budget request capitol hill administration noted proposal moderates recent explosive growth discretionary spending four percent 2002 increase 26 billion preceding fiscal year budget bid contains 231 billion total surplus 2002 projects 5 6 trillion surplus next ten years energy area administration noted federal government longstanding evolving role sector pointing federal energy programs agencies state private counterparts proposed 2 8 billion discretionary spending energy programs 2 1 billion tax benefits mainly encourage development traditional alternative energy sources doe budget request 19 2 billion including 2 3 billion energy resources programs later figure represents decrease 196 million 7 9 percent fiscal year 2001 environmental sector administration sought 7 3 billion discretionary funding epa including 3 7 billion operating program focused implementation federal pollution control laws success restructuring tied energy strategy ferc massey asserts electric restructuring may jeopardy success hands regulators policymakers ferc commissioner william massey asserted speaking recent national governors association policy forum philadelphia commissioner massey urged officials pay attention key elements national energy strategy first specified need adequate supply energy commodity turning second element commissioner massey told forum attendees supply world help unless delivered adequate efficient non discriminatory network commissioner massey identified market structure third essential element national energy strategy citing inherent difficulty good structure easily parsed wholesale retail jurisdictions accordingly said ferc states must work together market structure final element successful energy strategy commissioner specified need aggressive ferc intervention markets fail job states depend wholesale market regulator ensure reasonable prices consumers cautioned surely think twice heading restructuring path new generation dynegy build second plant kentucky dynegy announced plans construct new 330 megawatt plant adjacent riverside generating project lawrence county kentucky dynegy sell power generated plant wholesale market commercial operation expected begin first quarter 2002 ppl expand generation capacity ppl corporation week said would build 540 megawatt power plant near chicago would increase capacity susquehanna nuclear plant 100 megawatts ceo william hecht said illinois plant expected service summer 2002 constellation energy group announces eight new plants constellation energy group week announced company scheduled bring four peaking power plants line summer additionally four larger power plants scheduled enter service following two summers four peaking plants located illinois pennsylvania virginia west virginia larger power plants construction california florida illinois texas building seven states serve regions wholesale electricity needed provide energy support national power marketing business said constellation energy group chairman ceo christian poindexter california energy commission approves construction otay mesa generating plant pg e corporation national energy group neg last week announced california energy commission cec approved construction otay mesa generating plant san diego county neg developed 500 megawatt project produce enough electricity power 1 000 homes development process completed calpine corporation assume ownership project construct operate plant neg contract half plants output energy data weekly electric output week 15 electric output reached 63 528 gwh week ending april 14 week 15 highest increase 2000 levels south central states 12 6 percent increase 2000 week 15 year date rocky mountain region experienced greatest increase output 7 6 percent 2000 information email alliance eei org alliance express free news service sponsored alliance energy suppliers document redistributed please send questions comments requests alliance eei org telephone 202 508 5680 nancy tarr manager business development eei alliance energy suppliers 701 pennsylvania ave n w washington c 20004 telephone 202 508 5680 fax 202 508 5600 www eei org alliance ntarr eei org text htm fasb impact energy companies treatment capacity c