----- Forwarded by Jeff Dasovich/NA/Enron on 04/04/2001 11:06 AM -----

	Jean Munoz <jmunoz@mcnallytemple.com>
	04/03/2001 07:22 PM
		 
		 To: "'Andy Brown (E-mail)'" <ABB@eslawfirm.com>, "'B Brown Andy (E-mail)'" 
<andybrwn@earthlink.net>, "'Baker Carolyn (E-mail)'" 
<cabaker@duke-energy.com>, "'Bob Escalante (E-mail)'" 
<rescalante@riobravo-gm.com>, "'Bob Weisenmiller (E-mail)'" 
<rbw@mrwassoc.com>, "'Curtis Kebler (E-mail)'" 
<curtis_l_kebler@reliantenergy.com>, "Dean. Nistetter (E-mail)" 
<Dean.Nistetter@dynegy.com>, "'Douglas Kerner (E-mail)'" <DKK@eslawfirm.com>, 
"'Greg Blue (E-mail)'" <gtbl@dynegy.com>, "'Jan Smutny-Jones (E-mail)'" 
<smutny@iepa.com>, "'Jeff Dasovich (E-mail)'" <Jeff.Dasovich@enron.com>, 
"'Joe Ronan (E-mail)'" <joer@calpine.com>, "'John Larrea (E-mail)'" 
<john.g.larrea@williams.com>, "'John Stout (E-mail)'" 
<John_H_Stout@reliantenergy.com>, "'Julee Malinowski-Ball (E-mail)'" 
<jmball@ns.net>, "'Kassandra Gough (E-mail)'" <kgough@calpine.com>, "'kent 
Palmerton (E-mail)'" <kent.palmerton@williams.com>, "'Lynn Lednicky 
(E-mail)'" <lale@dynegy.com>, "Marie Moretti (E-mail 2)" 
<mmoretti@mccabeandcompany.net>, "'Marty Wilson (E-mail)'" 
<mwilson@pstrategies.com>, "'McNally Ray (E-mail)'" 
<rmcnally@mcnallytemple.com>, "''Nam Nguyen' (E-mail)'" 
<nam.nguyen@powersrc.com>, "'Norton Kelli (E-mail)'" 
<knorton@mcnallytemple.com>, "'Paula Hall-Collins (E-mail)'" 
<paula.hall-collins@williams.com>, "'Pigott Jack (E-mail)'" 
<jackp@calpine.com>, "'Richard Hyde (E-mail)'" <rwhyde@duke-energy.com>, 
"'Roger Pelote (E-mail)'" <roger.pelote@williams.com>, "'Stephanie-Newell 
(E-mail)'" <stephanie-newell@reliantenergy.com>, "'Sue Mara (E-mail)'" 
<smara@enron.com>, "'Tom Ross (E-mail)'" <tross@mcnallytemple.com>, "Tom 
Williams (E-mail)" <tcwillia@duke-energy.com>, "'Alex Sugaoka (E-mail)'" 
<alex.sugaoka@uaecorp.com>, "'Bill Carlson (E-mail)'" 
<william_carlson@wastemanagement.com>, "'Bill Woods (E-mail)'" 
<billw@calpine.com>, "'Bob Ellery (E-mail)'" <bellery@spi-ind.com>, "'Bob 
Gates (E-mail)'" <bob.gates@enron.com>, "'Cody Carter (E-mail)'" 
<cody.carter@williams.com>, "'Curt Hatton (E-mail)'" 
<Curt.Hatton@gen.pge.com>, "'David Parquet'" <david.parquet@enron.com>, 
"'Dean Gosselin (E-mail)'" <dean_gosselin@fpl.com>, "'Doug Fernley (E-mail)'" 
<fernley.doug@epenergy.com>, "'Duane Nelsen (E-mail)'" 
<dnelsen@gwfpower.com>, "'Ed Tomeo (E-mail)'" <ed.tomeo@uaecorp.com>, 
"'Eileen Koch (E-mail)'" <eileenk@calpine.com>, "'Eric Eisenman (E-mail)'" 
<eric.eisenman@gen.pge.com>, "'Frank DeRosa (E-mail)'" 
<frank.derosa@gen.pge.com>, "Frazier Blaylock (E-mail)" 
<frazier_blaylock@ogden-energy.com>, "'Hap Boyd (E-mail)'" 
<Hap_Boyd@enron.com>, "'Hawks Jack (E-mail)'" <jack.hawks@gen.pge.com>, "'Jim 
Willey (E-mail)'" <elliottsa@earthlink.net>, "'Joe Greco (E-mail)'" 
<jgreco@caithnessenergy.com>, "'Jonathan Weisgall (E-mail)'" 
<jweisgall@aol.com>, "'Kate Castillo (E-mail)'" <CCastillo@riobravo-gm.com>, 
"'Kelly Lloyd (E-mail)'" <kellyl@enxco.com>, "'Ken Hoffman (E-mail)'" 
<khoffman@caithnessenergy.com>, "'Kent Fickett (E-mail)'" 
<kfickett@usgen.com>, "'Lynn Lednicky (E-mail)'" 
<lynn.a.lednicky@dynegy.com>, "'Marty McFadden (E-mail)'" 
<marty_mcfadden@ogden-energy.com>, "'Paula Soos'" 
<paula_soos@ogden-energy.com>, "'Randy Hickok (E-mail)'" 
<rjhickok@duke-energy.com>, "Rick S. Koebbe (E-mail)" 
<rskoebbe@powerworksinc.com>, "'Rob Lamkin (E-mail)'" 
<rllamkin@seiworldwide.com>, "'Ross Ain (E-mail)'" <ain@worldnet.att.net>, 
"'Steve Iliff'" <siliff@riobravo-gm.com>, "'Steve Ponder (E-mail)'" 
<steve_ponder@fpl.com>, "'Tony Wetzel (E-mail)'" <twetzel@thermoecotek.com>, 
"'William Hall (E-mail)'" <wfhall2@duke-energy.com>, 
<trusso@mcnallytemple.com>, <sadlersa@earthlink.net>, <mstultz@epsa.org>, 
<rtemple@mcnallytemple.com>, <tracy.fairchild@edelman.com>, 
<megan.beiser@edelman.com>, <deborah.fiorito@dynegy.com>, <lchurch@epsa.org>, 
Katie Kaplan <kaplan@iepa.com>, <tcwillia@duke-energy.com>, 
<rwhyde@duke-energy.com>
		 cc: 
		 Subject: IEP Key Messages

Below are key messages we recommend IEP begin using in light of recent  
"price gouging/market manipulation" allegations - including the upcoming 
State Senate hearings.  
Thanks,
Jean


-- 
Jean Munoz
McNally Temple Associates, Inc.
916-447-8186
916-447-6326 (fx)



IEP KEY MESSAGES

Generators have been operating under the rules California established for its 
electricity market.  We did not create the market, nor did we write the 
rules.  In fact, the "big five" generators did not come to California until 
AB 1890 invited them into the state, where they?ve since invested billions of 
dollars buying, building and modernizing power plants.

. Energy companies, independent financial analysts and IEP warned that the 
PUC was failing to implement AB 1890 properly, and that the market was being 
set up to fail, especially the residential market.
. Last summer, generators were urging and offering long-term contacts. They 
were flatly rejected.  Had they been adopted, the crisis could have been 
prevented or its severity dramatically lessened.
. This crisis was caused by three things . the failure to enter into 
long-term contracts, forcing an over-reliance on the spot market; a supply 
shortage, and no retail market.  The market can be fixed.  It should not be 
abandoned.

We?re an important part of the solution.

. We?ve made extraordinary efforts to keep our plants running during this 
crisis to supply California homes and businesses with electricity.
. We?ve offered solutions and been cooperative partners in legislative and 
regulatory efforts to end the crisis. . Rather than using tax money, we?re 
investing billions of private-sector dollars to buy, modernize and build new 
power plants in California . to generate electricity for California.
. Our new and upgraded power plants will help improve California?s air 
quality and generate power more efficiently.

We?re hopeful that these hearing focus on facts, fairness and accountability.

. "Witch hunts," "scape-goating" and sensational headlines won?t solve the 
problem or end the crisis.