I was on the call this morning with Steve when Sen Feinstein's office 
indicated that they would welcome input from Enron on how to address the 
immediate crises.  However, they made it absolutely clear that they want 
solutions that can remove the imminent threat of rolling blankouts that may 
occur within the next 48 hours.  The Senator is not very interested in 
hearing about solutions that will require two years to implement.  

I would like to take your suggestions and ideas and incorporate them in a 
letter to the Senator.

Thanks







	Mary Hain@ECT
	12/14/2000 01:30 PM
		
		 To: Steven J Kean/NA/Enron@ENRON
		 cc: Jeff Dasovich/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Joe 
Hartsoe/Corp/Enron@ENRON, James D Steffes/NA/Enron@Enron, Tom 
Briggs/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON, Paul 
Kaufman/PDX/ECT@ECT, Lysa Akin/PDX/ECT@ECT
		 Subject: Re: FROM STEVE KEAN

Paul and I have started working on it and Lysa is setting up a conference 
call for today after 12:00 Pacific time (Paul is at the OPUC this morning). 


From: Steven J Kean@ENRON on 12/14/2000 12:12 PM CST
Sent by: Maureen McVicker@ENRON
To: Jeff Dasovich/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Joe 
Hartsoe/Corp/Enron@ENRON, James D Steffes/NA/Enron@Enron, Tom 
Briggs/NA/Enron@Enron, Sarah Novosel/Corp/Enron@ENRON, Paul 
Kaufman/PDX/ECT@ECT, Mary Hain/HOU/ECT@ECT
cc:  
Subject: FROM STEVE KEAN

I believe we need to prepare a letter to key decision makers regarding 
western energy markets and the actions that we believe should and should not 
be taken by policy makers.  I,ve recently spoken to rep from DOE, the cal 
senators, offices and FERC and am concerned that they continue to labor under 
misconceptions about how the market is operating and what policy decisions 
make sense.  I have conveyed Enron,s point of view to each of these 
representatives.  Several have asked for a letter and I believe it would be 
helpful to capture some of our views in writing.  

 Here are the key points I believe we need to make:

? we have a serious crisis in the energy markets in the western United States.

? some of the policy reactions to this crisis have been helpful but many have 
been harmful

? every action the govt. takes in the crisis situation should be (1) informed 
by discussions with market participants (and not simply taken on faith from 
the utilities or the CAL ISO), (2) should be measured against this simple 
standard: does the action actually increase supply or actually decrease 
demand; if not, then it,s not helping.

? we should list examples of both the short term and long term remedies that 
we believe satisfy this standard (e.g. in the short term things like having 
the ISO buy demand reductions, providing government guarantees for ISO 
purchases or having California lift emissions limits) and listing actions 
that do not meet this standard (e.g. price caps orders to sell power to the 
CAL ISO).

? list the actions that we have taken to increase supply or reduce demand.

? make ourselves available to discuss any of these matters.

I think we need to try to get such a letter prepared by the end of the day 
today.  

I am sending you a copy of the letter we sent to the commission regarding 
price caps and a letter El Paso sent regarding gas markets yesterday.  I am 
asking Paul Kaufman to take the lead on pulling this together or to designate 
someone to pull a draft together.