Enron Mail

From:steven.kean@enron.com
To:susan.mara@enron.com
Subject:Re: talking points on California situation
Cc:bruno.gaillard@enron.com, christopher.day@enron.com, jeff.dasovich@enron.com,mark.schroeder@enron.com, paul.dawson@enron.com, richard.shapiro@enron.com
Bcc:bruno.gaillard@enron.com, christopher.day@enron.com, jeff.dasovich@enron.com,mark.schroeder@enron.com, paul.dawson@enron.com, richard.shapiro@enron.com
Date:Fri, 17 Nov 2000 23:20:00 -0800 (PST)

Another key point: to avoid the mistakes of California, policy makers must
make it easy to site and interconnect new generation. In California peak
demand rose by about 5500 MW from 1996 - 2000. The market responded with
porposed capacity additions of about 11000 MW. Most of these facilities are
working thier way through the tangle of state and local approvals. The
problems we saw in California did not need to occur if policy makers simply
enabled the market to work. Also, it's worth noting that the deregulated
market did work. Customers who signed with Enron saw a lower bill than
prederegulation, Enron hedged its commitments and so our customers (and
Enron) did just fine during the summer. Deregulation worked; the problems in
California can be directly traced to continued regulatory interference in the
market.



Susan J Mara
11/17/2000 06:09 PM

To: Mark Schroeder/LON/ECT@ECT
cc: Bruno Gaillard/EU/Enron@Enron, Christopher J Day/Govt.
Affairs/LON/ECT@ECT, Jeff Dasovich/NA/Enron@Enron, Paul Dawson/Govt.
Affairs/LON/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Steven J
Kean/NA/Enron@Enron
Subject: Re: talking points on California situation

Mark,

Here's my shot. I did it in Revision mode so you can see the changes. Note
that Enron never got out of the retail market in CA and has gathered about
1,000 MW of retail load -- we're bigger than all but two of the municipal
utilities in the state. Enron stopped marketing to residential consumers --
that's what all the fuss was about in 1997. Anyone else feel free to take
your own shot.

Sue





Mark Schroeder@ECT
11/17/2000 09:52 AM

To: Susan J Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron
cc: Richard Shapiro/NA/Enron@Enron, Steven J Kean/NA/Enron@Enron, Paul
Dawson/Govt. Affairs/LON/ECT@ECT, Christopher J Day/Govt.
Affairs/LON/ECT@ECT, Bruno Gaillard/EU/Enron@Enron
Subject: talking points on California situation

Some of our people get asked on the phone about what is going on in
California. I have drafted the attached paper for their use. It is intended
to be simple and user-friendly. Your thoughts on whether I achieved that
objectvie are welcome. More importantly, I need you to confimr that I got
the story and facts correct, and that I have not said anything about the
situation that you (Enron USA) would not want to say, or have not said, or if
we have said something fundamentally different, I need to know that, too.
thanks for taking the time to review. mcs