It's worth noting too (perhaps as part of Jeff's first or second points) that 
in addition to chasing existing power supplies out of the state, price caps, 
and the uncertainty surrounding them, chase new generation away.  The turbine 
market is a worldwide market.  Firms will have difficulty committing their 
own capital (and borrowing from others) if they propose to put facilities in 
jurisdisctions where rates are capped or pricing is based on something other 
than the operation of the market.  Several generators, including Dynegy and 
Calpine, have said they will look for other homes for the turbines they have 
ordered.



	Jeff Dasovich
	Sent by: Jeff Dasovich
	11/17/2000 02:44 PM
		 
		 To: Robert Hemstock/CAL/ECT@ECT, skean@enron.com
		 cc: 
		 Subject: Hard Lessons from California    

Rob:
Here's a quick and dirty list of some lessons from California that Alberta 
may not want to repeat.  Steve, let me know if I've missed any messages we're 
using to describe California's woes (or mangled any, for that matter.  If you 
have any questions, don't hestitate to get in touch. 

Best,
Jeff