----- Forwarded by Steven J Kean/NA/Enron on 02/11/2001 02:35 PM -----

	MBD <MDay@GMSSR.com>
	02/09/2001 03:29 PM
		 
		 To: "'Scott Govenar'" <sgovenar@govadv.com>, "'skean@enron.com'" 
<skean@enron.com>, "'Sandi McCubbin Enron SF'" <smccubbi@enron.com>
		 cc: 
		 Subject: RE: Steve Kean


I think the letter is well organized to get our message across that a
comprehensive solution is needed.  The only concern I have is the reference
at the end of the first paragraph to  "the crisis grows daily with no clear
resolution offering long term relief in sight."  In fact we do no have
several bills on demand side management, one by Wright on accelerating
repowering of power plants and allowing incentives for voluntary
conservation, at least a vehicle for utility cost recovery (AB-18X), and a
Bown bill to restore direct access rights compromised by AB-1X.  So I am
concerned that the legislative leadership would take some umbrage at the
notion that we dont see any of what they are doing as offering hope for a
long term solution.  Perhaps we could rephrase it to say that the piecemeal
elements of positive solutions that have been discussed or offered need to
be clarified and blended into a comprehensive proposal which has the
following elements....and then lay out our case.

Sandi, do you agree with my concerns?  Otherwise the elements of the letter
are fine, and track what we are trying to draft in terms of legislative
language.  I will break down the proposals into groups of issues for ease of
review, even though we may later want to consoliate the entire package.  

Please call if you have any more questions.  

Thanks, 
Mike Day


-----Original Message-----
From: Scott Govenar [mailto:sgovenar@govadv.com]
Sent: Friday, February 09, 2001 7:56 AM
To: Mike Day
Subject: Steve Kean


Mike,

Sandi wanted me to forward a draft letter from Steve Kean to the
Governor and legislature for your review and comment.

Scott