Peace Targetting Market Players

I wanted you to be aware that we may start to see some negative press from
Sen. Peace. We be working up some potential responses, although we may end
up simply not responding publicly.

Jim

----- Forwarded by James D Steffes/NA/Enron on 10/12/2000 02:09 PM -----

Jeff Dasovich
Sent by: Jeff Dasovich
10/12/2000 12:52 PM

To: James D Steffes/NA/Enron@Enron, skean@enron.com, Richard
Shapiro/NA/Enron@Enron, mpalmer@enron.com, Karen Denne/Corp/Enron@ENRON, Mona
L Petrochko/SFO/EES@EES, Susan J Mara/SFO/EES@EES, Paul Kaufman/PDX/ECT@ECT,
Sandi Mccubbin, Joe Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON,
Mary Hain/HOU/ECT@ECT
cc:
Subject: Peace Targetting Market Players

FYI. Just got a call from Jan Smutney-Jones. Apparently, word is on the
street that Peace intends to begin targeting Enron as an example of the
"misconduct" that Peace alleges has occured in California's markets. Smutney
thinks Peace may be keying off the comments of the "unnamed" trader in the
Dow article claiming that Enron's been buying power and holding on to it.
Apparently Peace's other angle is/will be: "The same people who colluded in
the design of this market are now colluding to profit unfairly from it." No
idea of when and how Peace might launch any attacks. Two immediate thoughts:

Apart from the bad reporting in the Dow article, that article shows that
Enron got beat by, among others, two federal (Canada and the US), one state
(SRP) and one municipal (LADWP) government.
David Freeman, who now heads up LADWP, was appointed "Czar" by the State of
California and charged with the task of implementing Steve Peace's brain
child (AB 1890). Freeman set up the ISO and PX market structures. He also
set up the Governing Boards.