Rick:

This letter is disingenuous by not mentioning the retail price cap 
environment (economists know that price comes from consumer value flowing 
backward and not historic "cost" flowing forward in even quasi-competitive 
markets) and not mentioning FERC's action on the wholesale natural gas side.

If you want to explore a project where we get a bunch of in-state and 
out-of-state economists to sign an open letter arguing for lifting retail 
price caps with electricity from which we could make a case for wholesale J&R 
rates from demand dampening, I can contact either the Reason Public Policy 
Foundation or the Independence Institute in Oakland.  I mention the latter 
because they have experience in doing this sort of thing where they publish a 
signatory list in the newspapers and all that.  If so, I can look into this 
and try to get a price estimate.  If so, who on your team should I work with 
on this?

I think a letter from our side could make a good case for what the other side 
is calling "just and reasonable" by retail price freedom and open access, 
bilateral transaction institutional reform.

- Rob




	Richard Shapiro
	05/29/2001 01:15 PM
		 
		 To: Rob Bradley/Corp/Enron@ENRON
		 cc: 
		 Subject: Economists letter on FERC and California

Thoughts?
---------------------- Forwarded by Richard Shapiro/NA/Enron on 05/29/2001 
01:14 PM ---------------------------


Susan J Mara
05/29/2001 12:27 PM
To: Jeff Dasovich/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Linda 
Robertson/NA/Enron@ENRON, James D Steffes/NA/Enron@Enron
cc:  

Subject: Economists letter on FERC and California

To Congress.  From what I can tell, at least half of these economists are on 
Edison's payroll. Do we need to take any action? Where are the economists on 
the other side?

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 05/29/2001 10:24 AM -----

	Peter Bray@NEWPOWER
	05/29/2001 08:56 AM
		 
		 To: susan.j.mara@enron.com
		 cc: 
		 Subject: Economists letter on FERC and California

FYI
----- Forwarded by Peter Bray/HOU/NewPower on 05/29/01 08:55 AM -----

		

Attached is a letter signed by 10 prominent energy economists expressing "deep
concern about the failure" of the FERC to address the problems in the 
wholesale
power markets.  It is expected that new Senate Energy Committee Chairman, 
Jeff Bingaman,
will exercise considerable Congressional Oversight Authority to pressure
FERC to act to remedy wholesale prices.

Late Friday evening, the two new FERC Commissioners were confirmed by the
full Senate.  




 - FINALECONOMISTLETTER.pdf