---------------------- Forwarded by Jeff Dasovich/SFO/EES on 09/15/2000 07:00 
PM ---------------------------


Paul Kaufman@ECT
09/06/2000 07:16 PM
To: Sandra McCubbin/SFO/EES@EES, Jeff Dasovich/SFO/EES@EES
cc: James D Steffes/HOU/EES@EES, Richard Shapiro/HOU/EES@EES 
Subject: Strategy

I'd like us to take a stab at drafting the California strategy so we can 
present initial thoughts at the meeting I'm hoping to set up next Wednesday 
in D.C.  (Discussed under separate e-mail).  To that end, I suggest the 
following outline for the strategy:

What are our specific business interests in California?  Let's be as specific 
as possible, but limit the list to "hot buttons."   In this regard, Jim 
Steffes identified "the imposition of price caps in the summer of 2001" as 
the hot button.  Are there others?  
What are the forums we expect will affect our business interests?
For each forum, how do we want to posture Enron?  Do we want to be the most 
aggressive company?  Do we want to act alone?  Do we want to work only in 
coalitions?  What about IEP?  What will motivate us to act independently?
What is our overall strategy?  Do we want to go back to our pre-1999 
rhetoric?  We can scream louder than anyone else that California didn't do it 
right..  Peace will be gone ... should we breach Steve K.'s promise to play 
nice?  Do we want to tear down AB 1890 or shore it up?  
Forum-by-forum identify our:  (a) goals; (b) strategy; (c) what we (Enron) 
want out of the forum.  For example, re:  the legislature, do we want to 
identify legislation that we will seek affirmatively?  If not, why not?