Greetings Senator:

I'm informed that Mr. Lay is currently out of the country and that your 
message has been forwarded to him.

In the meantime, I am attaching a document that Ken Lay distributed to 
business leaders at meetings in Silicon Valley and Los Angeles about 2 weeks 
ago.  It is the document referenced in the Dow Jones wire story and does 
include the Company's view that a core/noncore market structure is the right 
answer for California (though the document has not been shared with Speaker 
Hertzberg).  

Mr. Lay discussed the core/noncore proposal extensively during his trip to 
Sacramento several weeks ago when, as you recall, he visited Sacramento and 
met with a variety of legislators from both sides of the aisle to discuss 
solutions to California's electricity crisis.

But unlike the Speaker's core/noncore proposal that I read about in today's 
San Francisco Chronicle, Enron's the proposal does not shift all of Edison's 
past due amounts from small consumers to California businesses. The Company 
believes that all customers should be responsible for the costs that have 
been incurred on their behalf.

I will be in Sacramento on Monday, June 4th and would like to discuss our 
proposal with you further if you would find it useful and if your schedule 
permits.  I'm also available to discuss the proposal further by phone if you 
would like to talk before Monday.

If there's anything else I can do, or if you have any questions, don't 
hesitate to contact me at 415.782.7822.

Best,
Jeff Dasovich