Joskow Paper Analysis/Preparation for Robert Michaels Call

Attached is my analysis of the Paul Joskow paper (Joskow) as well as Robert
Michaels' criticism (Joskow Critique). Joskow's paper questions the
viability of independent retail competition in electricity and invites
regulators to harshly consider independent challenges to the utility simply
passing through the wholesale price at retail.

Tomorrow at 4 PM Central and 2 Pacific we will have a conference call with
Robert Michaels about his paper and my paper. From this discussion we can
make revisions and distribute a final to those who might be interested (such
as Kathleen Magruder).

Note: Dr. Michaels, a trusted consultant of Enron for a number of years, has
been told in very general terms about ResCo and is holding his knowledge in
strict confidence.

If anyone outside of Houston would like to join us tomorrow on the call, let
me know and I will give you a call-in number.