Jim/Rick/Linda--I have faxed to you a copy of the resolutions that came out 
of the Western Governors meeting last Friday.  We were pleased to see that 
there was no language endorsing price caps in the documents, nor was there 
even a section suggesting that they be studied.  The resolutions included 
many of our suggestions (power supply contracts,rate reforms to send more 
accurate price signals, demand exchanges, eliminating barriers to distributed 
generation, etc)  There was also a specific endosement of construction and 
expansion of pipelines and electric transmission.

The Thursday evening keynote by Bennett Johnston was typical old fox 
Louisiana style rhetoric saying that even though price caps didn't work, 
gee...just this one time, they should be instituted for just the short term 
(his client is SoCalEd).  The morning session started off rocky, with way too 
much discussion about price caps or cost plus ratemaking being a good idea.  
Mid way thru the program Gov Kempthorne affirmatively stated that he did not 
agree with price caps and that actually started the discussion back on the 
right road.  The Governors met in closed session at noon and then later in 
the day, and ultimately there were enough Republican votes to make sure that 
price caps were not endorsed.

DOE secretary Abraham was not particularly vocal during his time on the 
panel, but did give good anti price cap interviews with the press later. And 
good old market man Curt Hebert had some very strong statements against price 
caps.  His colleagues Massey and Breathitt were both there, and did not echo 
the same sentiments!

Paul and I will be talking in the next few days to plan our next strategy 
with this group...it will need some continued hand holding and work.  Please 
feel free to call either of us if you would like more specific info.  Please 
also forward on to whoever in your group I neglected to copy or would have an 
interest..  THANKS to all who helped us get ready for this meeting.