Jeff,

It has come to my attention that you were concern by some of my comments
recently televised on CH. 2. Let me try to  fill in the blanks. First, the
interview lasted almost 45 minutes of actual camera time. Of course, the
news media took their usually advantage of editing "for their agenda" what
they wanted. The risk you take in any situation like this. During the course
of the interview, I made it quite clear that it would be a mistake to lay
California's current natural gas problems on the doorstep of deregulation.
No one should question I am strongly in favor of gas deregulation in the
state.

On a more direct point, Mr. Vacar was clearly trying to get me to confirm
what he had already been told before my interview that the culprit here was
Enron Online. I disagreed with that conclusion yesterday and this morning.
About 1/2 hour ago, Mr. Vacar phone me to presumably find out what natural
gas prices where doing in the spot market. He quickly brought the
conversation back to Enron Online. I told him that it would be a mistake to
blame these current day prices on Enron Online. While it is convenient for
some to look for a simple singular answer or someone to blame, the answer
isn't Enron Online. He went on to reason that Enron is such a large energy
company they could conceivably "do this". I responded that would also be a
mistake. I acknowledged Enron as a large player but in no way capable of
running up California Gas prices because of some "perceived dominance".

Yesterday, I shared my concern that Mr. Vacar was directing his inquiries
toward Enron with Mr. Fawcett. Obviously , I reserve my right to call them
like I see them independent from anyone of my clients own agendas and will
continue to do so. The source of potential allegations against Enron isn't
me. If I can clarify anything else let me know.

Mark, IGS