Janel:

In response to your request, here are some of the key themes that Ken is 
using that should be kept in mind in our advertising and other external 
efforts.  Let me know if there are other themes that we should be thinking 
about.

1) energy is the "master resource."  1.6 billion people don't have modern 
energy such as electricity, and the rest of the world needs increasing 
amounts of power in the IT age where bits are electrons and many new 
applications of power are emerging.  Reliability requirements are also way up 
in the IT age (more "9s" of reliability).

2) Infrastructure must expand to meet growing demand or price spikes can 
occur.  Price spikes lead to emergency fixes that are more costly and more 
polluting than if infrastructure was added in a more timely way.  For 
example, in California the lack of modern new gas-fired capacity has forced 
the state to run its older, more polluting gas plants more.

3) Electricity is a very volatile commodity--risk management tools are needed 
to meet customer expectations and avoid situations creating political 
opportunism and strife between buyers and sellers.

4) The short run answer to shortages is real time pricing to bring demand 
down to meet available supply in the peak periods.

5) Price controls create shortages and require further government involvement 
to ration supply.

6) Natural gas is the fuel of choice for new power generation capacity for 
economic and environmental reasons.  The resource base is robust, and gas 
(and LNG) could even over time displace much or all of the coal capacity of 
the United States.  This may be required as part of a climate change policy.  
However, the "NIMBY" problem could hurt gas more than coal in meeting the 
future needs of the country.


Robert L. Bradley, Jr.
Director, Public Policy Analysis
Enron Corp.
P.O. Box 1188, Room 4736D
Houston, Texas 77251-1188

Phone: 713-853-3062
Cell: 713-304-8942
Fax: 713-646-4702