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.

From: Paul Kaufman/ENRON@enronXgate on 06/18/2001 07:37 PM
To: James D Steffes/NA/Enron@Enron
cc:

Subject: RE: CDWR Contract Analysis

Given Jeff's work on the comprehensive solution, we will need to develop a
relatively quick public posture on the contracts to convey to our lobbyist
folks. Bev has already asked for some input. I told her we would have an
initial view on Tuesday for our California call.

-----Original Message-----
From: Steffes, James
Sent: Monday, June 18, 2001 9:39 AM
To: Kean, Steven; Shapiro, Richard; Kaufman, Paul; Dasovich, Jeff; Mara,
Susan; Comnes, Alan; Alvarez, Ray; Robertson, Linda; Palmer, Mark; Denne,
Karen; Sharma, Ban; Fraser, Jennifer; Tribolet, Michael; Thome, Jennifer;
Linnell, Elizabeth; Guerrero, Janel
Subject: CDWR Contract Analysis

Jennifer Thome will be coordinating the review of CDWR's contracts beginning
this morning. If anyone has any issues that need to be considered in the
review, please make sure that Jennifer understands the issues.

Jennifer Fraser has volunteered someone from her team to help.

We will be working with ENA Legal in Portland (through Alan Comnes) to help
with the review.

Please call Jennifer Thome if there are any questions. Jennifer will provide
an update on timing etc. at the end of the day.

Thanks,

Jim