Attached is a marked up copy of Jan's memo with comments regarding possible
responses on each point.

In addition, I suggest being prepared to describe some affirmative ideas we
think the Governor should support -- just to see what they say.  Below are a
few suggestions that I am working on for my memo to the Board on 2001
legislation.

Fixed Price Contracts
Require the California Public Utilities Commission (CPUC) to establish
criteria for reviewing and approving or rejecting proposed fixed term, fixed
price contracts within 20 days of their submission by an investor-owned
utility.

Demand-Side Management
Require the CPUC to resolve the interruptible tariff issues in a manner that
will make the program workable from customer and reliability perspectives.
(I am not up to speed on the issues associated with this -- only that the
CPUC has industrial customers up in arms.)

Power Plant Siting
Require the California Energy Commission to consider the positive
environmental impacts of proposed projects when analyzing alternatives to
proposed projects, including the &no project8 alternative.  (This has little
affect but makes a point about the CEC process.)

Simplified Interconnection Rules for Preferred Technologies
Require the CPUC to adopt standard, simplified interconnection options for
distributed generation, renewable, and small cogeneration projects.  (A
perverse version of this was in a Peace bill last year.  As proposed, it
applied only to projects that did not sell onto the grid.  When Enron and
cogenerators made clear that they would cause problems if it wasn't changed,
SCE asked to have the whole section deleted.  It was.)

Community Access
Permit cities and/or other political subdivisions of the state to aggregate
their consumers into electricity buying coops by adopting a local ordinance
that gives customers the opportunity to &opt-out8 of the program.  (TURN has
said it intends to sponsor this next year.)

Have fun in the meeting!  Karen



-----Original Message-----
From: Katie Kaplan [mailto:kaplan@iepa.com]
Sent: Wednesday, November 22, 2000 3:46 PM
To: Jeff.Dasovich@enron.com; knorton@mcnallytemple.com; 'John Stout for
Reliant'; 'Curtis Keebler at Reliant'; 'Julie @ Edson'; 'Paula
Hall-Collins'; 'Marty Wilson'; 'Rob Lamkin'; Karen Edson; Bob
Weisenmiller; Sue Mara; Andy Brown; B Brown Andy; Bob Escalante; Greg
Blue; Jack Pigott; Jan Smutny-Jones; Joe Ronan; Karen Denne; Kassandra
Gough; Kristin Vellandi; Lynn Lednicky; McNally Ray; Richard Hyde;
Stephanie-Newell; Tom Ross; Roger Pelote; Richard Hyde; Lynn Lednicky;
cabaker@duke-energy.com
Cc: chudson@iepa.com
Subject: Governors Meeting


Greetings:
Apologies in advance for those of you who have already received this e-mail
but we are having transmission problems and I just wanted to make sure
everyone had this.  Contrary to the message we will not be holding a
conference call.

Have a happy and safe Thanksgiving!

Katie Kaplan
Manager of State Policy Affairs
Independent Energy Producers Association
(916) 448-9499

 - Govs meeting KE Notes.doc