----- Forwarded by Richard B Sanders/HOU/ECT on 10/15/2000 09:00 AM -----

	James D Steffes@ENRON
	10/12/2000 02:09 PM
		 
		 To: Tim Belden/HOU/ECT@ECT, Vicki Sharp/HOU/EES@EES, Richard B 
Sanders/HOU/ECT@ECT, Christopher F Calger/PDX/ECT@ECT
		 cc: 
		 Subject: Peace Targetting Market Players

I wanted you to be aware that we may start to see some negative press from 
Sen. Peace.  We be working up some potential responses, although we may end 
up simply not responding publicly.

Jim




----- Forwarded by James D Steffes/NA/Enron on 10/12/2000 02:09 PM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	10/12/2000 12:52 PM
		 
		 To: James D Steffes/NA/Enron@Enron, skean@enron.com, Richard 
Shapiro/NA/Enron@Enron, mpalmer@enron.com, Karen Denne/Corp/Enron@ENRON, Mona 
L Petrochko/SFO/EES@EES, Susan J Mara/SFO/EES@EES, Paul Kaufman/PDX/ECT@ECT, 
Sandi Mccubbin, Joe Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, 
Mary Hain/HOU/ECT@ECT
		 cc: 
		 Subject: Peace Targetting Market Players

FYI.  Just got a call from Jan Smutney-Jones.  Apparently, word is on the 
street that Peace intends to begin targeting Enron as an example of the 
"misconduct" that Peace alleges has occured in California's markets.  Smutney 
thinks Peace may be keying off the comments of the "unnamed" trader in the 
Dow article claiming that Enron's been buying power and holding on to it.  
Apparently Peace's other angle is/will be:  "The same people who colluded in 
the design of this market are now colluding to profit unfairly from it."  No 
idea of when and how Peace might launch any attacks.  Two immediate thoughts:

Apart from the bad reporting in the Dow article, that article shows that 
Enron got beat by, among others, two federal (Canada and the US), one state 
(SRP) and one municipal (LADWP) government.
David Freeman, who now heads up LADWP, was appointed "Czar" by the State of 
California and charged with the task of implementing Steve Peace's brain 
child (AB 1890).  Freeman set up the ISO and PX market structures.  He also 
set up the Governing Boards.