----- Forwarded by Rob Bradley/Corp/Enron on 02/15/2001 10:07 AM -----

	JamesLJohnston@cs.com
	Sent by: owner-fme-roundtable@perc.org
	02/14/2001 04:32 PM
		 
		 To: fme-roundtable@perc.org, Free-MarketEnergyForum@yahoogroups.com
		 cc: 
		 Subject: CA power essay by Bob Michaels


Dear all:

An excellent essay on the power crisis by Bob Michaels has just been issued
by the NCPA.

Note that it does not contain the admonition against contracts longer than
two years as was done by the Manifesto issued by the Haas school at Cal
Berkeley, even though the latter was signed by Bob. That mistake was repeated
in yesterday's WSJ by Nobel laureate Daniel McFadden. Indeed, the view that
electricity prices would go down was the original mistake made in 1996 when
restructuring was enacted and contributed to the crisis in 2000 and 2001.

The article by Bob Michaels is at http://www.ncpa.org/ba/ba348/ba348.html

Regards,

Jim Johnston