Price Cap Status 7.18.00

---------------------- Forwarded by David W Delainey/HOU/ECT on 07/19/2000
11:48 AM ---------------------------

James D Steffes@EES
07/19/2000 08:48 AM
To: David W Delainey/HOU/ECT@ECT
cc:
Subject: Price Cap Status 7.18.00

Dave --

Update on activity related to California price caps. Key issue is that we
continue to believe a new vote will take place on Aug 1. We continue to try
and find additional "no" votes.

Thanks,

Jim

---------------------- Forwarded by James D Steffes/HOU/EES on 07/19/2000
08:47 AM ---------------------------

Jeff Dasovich on 07/18/2000 08:06:39 PM
To: James D Steffes/HOU/EES@EES, Paul Kaufman@EES, Mona L
Petrochko/SFO/EES@EES, Susan J Mara/SFO/EES@EES, Sandra McCubbin/SFO/EES@EES,
Joe Hartsoe/Corp/Enron@Enron, Dave Parquet@ENRON_DEVELOPMENT, Tim Belden@ECT,
Robert Badeer@ECT, Dennis Benevides/HOU/EES@EES, Roger Yang/SFO/EES@EES,
Richard Shapiro/HOU/EES@EES
cc:
Subject: Price Cap Status 7.18.00

Enron will take the initiative and help IEP jump-start the PR effort by the
end of the week. I spoke with Smutney this evening. He likes the idea of
Enron taking the lead with McNally/Temple. I've emailed him the one-pager we
worked up today.--Palmer, Steffes, Dasovich,Parquet
The urgency for a solution is growing and a vaccuum has formed, with many
trying to fill the void. The Cal. Manufacturers Ass. has called a meeting
with IEP and the utilities. Dave Parquet and Doug Condon will attend.
I spoke with the VP of Strategic Planning at the ISO today who said there is
a "98% chance" that price caps will be on the agenda at the August ISO Board
meeting.
Dave Parquet continues to check with SDG&E to determine when SDG&E plans to
make an announcement about what it intends to do with the offers it received
last week.
Dave Parquet is working with Andy Kellerman and J. Steffes to try and get the
investment community energized on this issue.
The issue is now apparently affecting California legislative races. Staffers
are drafting a bill that an "at risk" Democrat Senator from San Diego will
carry, with the hope of using the bill to get the bump necessary to win the
election. Mona will meet with the staffer on Thursday to find out what he
has in mind for the bill and to communicate our views.
Dasovich will meet with Commissioner Bilas Wednesday to see if the Republican
block of the California PUC is hanging tough.

That's it from our end.

Best,
Jeff