I've attached a memo prepared by Carl Imparato that summarizes the discussion 
that we recommend be included in a filing with FERC that lists the top 
priorities for fixing the California market.  (Actually, there are 7 topics 
on the list.  Item 6 is a list of things that FERC should not do, and item 7 
will not be pursued.)

Our thematic approach is to explain that the California model worked fairly 
well until this summer when demand outstripped available resources, which, in 
combination with wrong-headed CPUC policies (such as disincentives against 
hedging), AB 1890 mandates, and ISO implementation decisions, caused prices 
to spike.  Thus, the solution is to fix these policies, not to eschew the 
de-centralized California approach in favor of a POOLCO model favored by 
certain entities.

We hope to have a good draft to circulate by mid-week next week.  Please let 
me know as soon as possible if you oppose including any of these issues in 
the paper, or the priority ranking or thematic approach discussed above.

Ron

 - enrontop5.rtf