|
|
Enron Mail |
Janel:
In response to your request, here are some of the key themes that Ken is using that should be kept in mind in our advertising and other external efforts. Let me know if there are other themes that we should be thinking about. 1) energy is the "master resource." 1.6 billion people don't have modern energy such as electricity, and the rest of the world needs increasing amounts of power in the IT age where bits are electrons and many new applications of power are emerging. Reliability requirements are also way up in the IT age (more "9s" of reliability). 2) Infrastructure must expand to meet growing demand or price spikes can occur. Price spikes lead to emergency fixes that are more costly and more polluting than if infrastructure was added in a more timely way. For example, in California the lack of modern new gas-fired capacity has forced the state to run its older, more polluting gas plants more. 3) Electricity is a very volatile commodity--risk management tools are needed to meet customer expectations and avoid situations creating political opportunism and strife between buyers and sellers. 4) The short run answer to shortages is real time pricing to bring demand down to meet available supply in the peak periods. 5) Price controls create shortages and require further government involvement to ration supply. 6) Natural gas is the fuel of choice for new power generation capacity for economic and environmental reasons. The resource base is robust, and gas (and LNG) could even over time displace much or all of the coal capacity of the United States. This may be required as part of a climate change policy. However, the "NIMBY" problem could hurt gas more than coal in meeting the future needs of the country. Robert L. Bradley, Jr. Director, Public Policy Analysis Enron Corp. P.O. Box 1188, Room 4736D Houston, Texas 77251-1188 Phone: 713-853-3062 Cell: 713-304-8942 Fax: 713-646-4702
|