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Enron Mail |
Restructuring Today quotes Jeff at length on retail vs wholesale price caps.
He does talk about protecting small customers with retail caps and highlights the more destructive nature of wholesale caps. If you need a copy let me know. kmagruder@newpower.com on 09/09/2000 11:39:55 AM To: Steven.J.Kean@enron.com cc: rshapiro@enron.com, glockhart@newpower.com, mmanly@newpower.com Subject: Re: Thanks, Steve. The message we received was that Jeff had said he'd take retail price caps to avoid wholesale price caps. I know the press and listeners will distort things, so I take the reports with a grain of salt. We just hope that you and Dasovich will find a way, if asked, to stress the right way to take care of small customers - enhance competition and create a robust retail market. I know we all want the same result. We just hope that with our roadshow beginning next week, Gene doesn't have to explain away any other perceived Enron slams on retail competition. P. S. I can't think of two better spokesmen for the cause of competition than you and Dasovich. Steven J Kean@ENRON 09/08/2000 06:03 PM Sent by: Steven J Kean@ENRON To: kmagrude@enron.com cc: Richard Shapiro/HOU/EES@EES Subject: Got your message. I'm testifying at the Congressional hearing and Dasovich is covering FERC. I think Jeff's comments were taken out of context. He said policymakers do need to take care of small customers whose bills are tripling. Frankly, we'd get slaughtered if we said anything else. But he also said there is a right way and a wrong way to do it. Enron and others had provided a market based answer by offering a fixed price deal to SDG&E (which would have enabled them to cap rates to those who had not switched. California elected instead to cap rates and deficit spend (ie create a deferral account). I don't think we can stand for anything that doesn't protect the small customers, but we can continue to emphasize the market based solutions. One of the messages in my testimony will be: customers should be encouraged to choose. Those who did are doing fine.
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