|
|
Enron Mail |
Jeff:
I took a crack at expressing our thoughts on the exit strategy below. I am not really happy with it in either tone or content and would welcome your input so that we can have more persuasive testimony tonight. Gratefully, Justin Principles to Create a Healthy Competitive Electricity Market The Silicon Valley Manufacturing Group is concerned by the absence of a systematic and expedited exit strategy for the state from the power business. We are convinced that planning for and creating a competitive electricity market is the most effective means to long-term stability and cost-competitiveness for all consumers in California. There are certain principles that, if followed, will help lead us to the kind of stability and cost-effective power that Californians want. We recommend that follow-up legislation to AB1X provide the guidelines for thi= s exit strategy with the following concepts: 1. Keep the utilities solvent and spread out the payback of the CTC over several years 2. Encourage the DWR to buy the least amount of power necessary to stabiliz= e the market for the least amount of time. It does not take a lot of fixed priced contracts to stabilize the market 3. Establish an objective trigger (based on credit worthiness) for the utilities to assume long-term contracts. 4. Allow customers to have direct access and real choice while providing necessary protections to assure the state that the bonds can be repaid =01) 5. Direct long-term customer contracts are beneficial for the State because it lessens the burden of the DWR to obtain power, particularly at peak demand times. 6. Remove barriers to on-site generation to meet customer needs and put excess power onto the grid. Even though we are in a crisis, we should not postpone accounting for long-term and unintended consequences of our short-term measures. Effectiv= e energy policy should be based on sound economic principles. Together, we can accomplish this. -----Original Message----- From: Jeff.Dasovich@enron.com [mailto:Jeff.Dasovich@enron.com] Sent: Thursday, February 08, 2001 11:41 AM To: jbradley@svmg.org Subject: (See attached file: SVMG Talking Points--JBradley.doc) - SVMG Talking Points--JBradley.doc
|