Jim and others,

I think we are suffering from not enough time to fully iterate this, as well 
as little information on what
others are going present.

The basic messages as I see them (and not having trued this up with Mary or 
others) are:

1.  The markets are working consistent with physics and economics; demand is 
up, supplies are down and higher
prices are resulting.
2. Characteristics of the retail markets have resulted in risks being passed 
to end users.  Are such issues
impeding wholesale markets?  If so, perhaps FERC can influence movement in 
this area.
3. We shouldn't equate outcomes at the retail level with bad structure at 
wholesale level.  The key is to
distinguish the retail issues so that FERC can focus on the wholesale issues.
4. Any remaining concerns should be studied further rather than simply 
receiving blame for the outcomes we've
seen:  Whether there is market power?  Whether rather it's a matter of 
scarcity rents?  What are appropriate
scarcity rents?  Is monopsony power on the buyers' side (utilities) causing 
undesirable economic and reliability
outcomes.   (And out of this should be consideration of whether an 
across-the-board $250 cap is the right one,
especially given that the ISO staff itself recognizes that this is a poor 
proxy for what buyers are willing to
pay as scarcity rents.)

That's my 2 cents.  I don't know what Mary's additional thoughts are, nor how 
what other parties will say may
affect what we should emphasize.

Certainly, though, your feedback is invaluable.  If you reply with feedback 
I'll do what I can to see that
Enron's message reflects your preferences.

Regards,
Ellen.

James D Steffes wrote:

> Mary & Joe --
>
> Given the time frame for our response (2 - 4 minutes), we need to prepare 
not
> only our "leave behind" but also our "oral message".
>
> I want to make sure that everyone agrees with the theme and content of our
> verbal discussions.  Can you please put out an outline of the message and
> details and then make sure the Trading desk and CA Govt Affairs agree with 
the
> form and delivery (set up a conference call if necessary)?
>
> This is a very complicated issue and very short time frame to deliver.  The 
more
> we prepare I think the better we'll do.
>
> Thanks,
>
> Jim
>
>   ------------------------------------------------------------------------
>                                              Name: August 24 presentation 
to FERC1.ppt
>    August 24 presentation to FERC1.ppt       Type: Microsoft PowerPoint 
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>                                          Encoding: base64
>                                       Description: Microsoft PowerPoint 97

 - ellen.vcf