August Phone Call from David Sokol

Steve: We need to give Ken Lay a heads up and coordinate strategy for a
phone call he will receive during the August Congressional recess from
MidAmerican's CEO David Sokol if the electricity restructuring bill does not
pass this Congress (which is currently the most likely outcome.) Mr. Sokol
will invite Ken Lay to attend a Winter meeting in the west with a few key
CEO's for the purposes of their coming to the table to complete the consensus
approach we have already developed within the DOE Stakeholders and the
MidAmercian Roundtable groups. The proposed general format would be to have
Ken Lay, David Sokol, John Rowe, Earl Nye, and Alliant's Davis (i.e. the EEI
Executive Committee) meet for 1-2 days to forge the consensus framework
principles for the general bill. On the third day, they would invite
Congressman Tauzin, Congressman Dingell, Congressman Barton, Senator
Murkowski, Senator Bingaman, etc. to deliver the deal and achieve their
buy-in.

I successfully requested that MidAmerican's lobbyist add high tech companies
to the mix. Thus, we will have to prepare Ken Lay to ask for these attendees
and to offer to contact the correct CEO's (i.e. from APX....but if Sun, Cisco
and other users could be made interested to participate, this would be
politically helpful.) Too, in addition to inviting a few essential key
participants, we should discuss conditions Ken Lay may wish to place on his
participation (i.e. other than transmission open access and functional
separation, do we want to ask for something more next Congress?) Further, we
will need to debrief him on all the consensus developed here to date on
interconnection, Private Use, market power, etc.

Because of the change in EEI's leadership this year, they will necessarily
need to support bill passage next Congress in order to meet John Rowe's
wishes. Although we need to prepare Ken Lay, we should keep this
confidential outside of Enron. Further, my notification should not be
allowed the steal David Sokol's "thunder" when he actually places the call.

Please advise me as to what materials or further information you need from me
on this matter. thanks, Cynthia