Steve - attached is a new chart that paints a clearer picture of the existing 
generation emissions v. new generation emissions.  Some of the units are 
fairly inefficient ('though some of these units are currently in the process 
of "repowering" to increase their efficiency) which increases their effective 
emissions.



(see Chart 1)

In thinking more about the discrepancies in emissions b/w existing and new 
generation, it really amounts to a fundamental flaw in the rules for 
nonattainment areas in the Clean Air Act.  These rules have no provisions for 
growth and create a pretty strong competitive advantage for existing sources 
of emissions.  Basically, any new sources in nonattainment areas have to go 
to existing sources and convince them to reduce their emissions.  In CA's 
case - since they have been nonattainment for so many years many of the 
sources of emission reductions have already been tapped.  In other 
nonattainment areas like Houston and Atlanta - the nonattainment geographic 
boundaries are so small that there are only a handful of significant 
stationary sources of emissions.

I don't think CA is going to be able to effect a lot of change on their own.  
It is going to take a Federal legislative fix.

Let me know what other information you need.

Mary Schoen
Environmental Strategies
Enron Corp
713-345-7422