Paul Kaufman phoned with the following brief report from the Western 
Governor's Association  "Energy Summit" that took place today.  Paul will 
follow up with more detail when he gets back to a computer. The governors 
issued the following recommendations:

California should immediately implement FERC's order issued last Friday and 
aggressively pursue all available DSM and conservation opportunties.
The Western region should likewise be much more aggressive in identifying and 
implementing DSM and efficiency opportunities.
Increase supply as soon as possible.
FERC should do an investigation into the potentially negative effects that 
price caps can cause in the industry.
FERC should add to its investigations an investigation into what caused the 
price spikes in the first week of December.
Work with the Bush transition team to make sure that someone from the new 
administration is focused on the issue.

Hoecker said that he is not inclined to impose a region-wide cap until 
California takes the actions it needs to take to help alleviate the situation 
(e.g., reforming regs governing utility forward contracts).

Jeff