California Legislative Strategy as of 8/17/00

CONFIDENTIAL WORK PRODUCT

The key points for the next 2 weeks are as follows:

1. Sen. Alpert Legislation on Rate Caps
- 2290 may be "dead"
- Senator staff recognizes the legislation has "problems"
- Senator is still looking to move something with another vehicle
- Enron MESSAGE: "CPUC is fixing the problem, legislature should do
nothing; if you decide to do something, then use Enron's fixes" (which
simply codify the CPUC's decision)
- focus on customers' support for our legislative fix rather than IEP
- Jeff D. to talk with customers, give them our fix, tell them to sit tight,
and contact Sandi M. to discuss
- Sandi M. to talk with Sen. Alpert about our fixes

2. Continue to support Williamson Act fix for Pastoria
- Committee meeting on 8/18 fo Urgency bill
- no opposition identified to date (some question about Farm Bureau though)
- Sandi M. to attend meeting to support bill

Sandi M. will report back on events tomorrow afternoon.

It looks like we can secure both items in a reasonable fashion. We need to
stay focused and coordinated. If anyone has any questions, please let me
know.

Jim Steffes
713-853-7673