I have always found it useful in preparing for congressional hearings to have 
"Hearing Themes."  The themes represent  both the points we want to make in 
our written testimony and the points we should try to emphasize in our oral 
answers to Member questions.   Please feel free to edit.  Here is a first 
cut: 

I. The energy problems in California are of its own making and ultimately 
will require action by the State   government.   The State did not deregulate 
in 1996, it misregulated.  
 
II. In the short-term, California must provide support to the Utilities to 
maintain reliability as they are doing with 
 the California Department of Water Resources purchases and the Utilities' 
financial problems resulting from their
 inability to recover power costs should be addressed immediately by the 
State.  

III. For the long-term, California should:
 
 --Increase supply and reduce demand
 --Bring retail rates in line with the cost of a reasonable portfolio of 
electricity supply
 --Allow customers to benefit stable long-term contracts
 --Not abandon its commitment to foster retail competition.
 (Here we should explain what we mean by each point and suggest solutions.  
Our explanation should not
 assume deep knowledge of the problem or the solutions.)

IV. The California "experience" does not mean deregulation leads to higher 
prices for consumers and a lack
 of reliable supply.  

 --The California crisis illustrates that true deregulation is the answer, 
misregulation is not.
 --There are ample illustrations of "good" state deregulation efforts.
 --Current Federal efforts to increase supply and decrease demand should be 
pursued.
 --Federal efforts to increase incentives for power generation should include 
regulatory policies
 designed to extend open access to all uses of the bulk power transmission 
grid so that power
 can move freely to meet demand and new generation facilities may be brought 
on-line.


V. Enron has been a positive presence in California.

 --Enron is neither a net generator nor a net user of energy in California.
 --We are in the business of making markets and making them work better.
 --From the outset, Enron has been working with all parties to find 
constructive, workable,
 and well-tested solutions to California's problems.  
 --While we strongly disagree with the DOE supply orders, we have fully 
cooperated with
 them in California


VI. Time is running out.  California must act soon, just as our Federal 
efforts to put in
 place a national energy policy should be soon.