Greetings Senator:

I'm informed that Mr. Lay is currently out of the country and that your
message has been forwarded to him.

In the meantime, I am attaching a document that Ken Lay distributed to
business leaders at meetings in Silicon Valley and Los Angeles about 2 weeks
ago. It is the document referenced in the Dow Jones wire story and does
include the Company's view that a core/noncore market structure is the right
answer for California (though the document has not been shared with Speaker
Hertzberg).

Mr. Lay discussed the core/noncore proposal extensively during his trip to
Sacramento several weeks ago when, as you recall, he visited Sacramento and
met with a variety of legislators from both sides of the aisle to discuss
solutions to California's electricity crisis.

But unlike the Speaker's core/noncore proposal that I read about in today's
San Francisco Chronicle, Enron's the proposal does not shift all of Edison's
past due amounts from small consumers to California businesses. The Company
believes that all customers should be responsible for the costs that have
been incurred on their behalf.

I will be in Sacramento on Monday, June 4th and would like to discuss our
proposal with you further if you would find it useful and if your schedule
permits. I'm also available to discuss the proposal further by phone if you
would like to talk before Monday.

If there's anything else I can do, or if you have any questions, don't
hesitate to contact me at 415.782.7822.

Best,
Jeff Dasovich