
Date: Tue, 19 Jun 2001 01:06:00 -0700 (PDT)
From: james.steffes@enron.com
To: paul.kaufman@enron.com, jeff.dasovich@enron.com, richard.shapiro@enron.com
Subject: CDWR Message Points

Agreed.  My initial thoughts --

1. More Government isn't the answer.  If this proves anything, it is that
Government is the wrong party to manage consumer's energy price risk.

2. This is a 10 year hangover.  The total bill = $### billion.

3. Direct Access is a better solution for California.  Let businesses manage
their own needs, rather than a small public agency never designed to take on
this task.

4. Too much, too late.  CDWR should have been buying to manage the cost for
2001, not worrying about 2007.  Any contract that starts after Sept 2002 is
simply not a part of any real solution.

By the way, I think that if pressed, Enron has to be very clear - we are not
advocating abrogation of contracts.

Jim

P.S. Jennifer will be ready to present something at the call.




