FW: Thoughts for AReM Going Forward

FYI. Note from Sue to the ARM group. Got this over the weekend. Let' s discuss when you have a minute. Fits in with how we intend to manage the myriad risks we face, how we engage, whether we need an RCR, etc. See part of note that I've highlighted.

Best,
Jeff

-----Original Message-----
From: Mara, Susan
Sent: Friday, November 16, 2001 4:20 PM
To: 'arem@electric.com'; Dasovich, Jeff
Subject: Thoughts for AReM Going Forward

Jeff Dasovich may be there for Enron on Monday.

Here are some of my thoughts.

# 1 Objective -- Get DA Reinstated
#2 Objective -- Ensure fair fees and rules

We have our Supreme Court appeal and we need a legislative/administration strategy to put pressure on for re-instatement. None of us underestimates the difficulty of this in an election year. Speaking of elections, we may also want to contact the Riordan campaign. He came out with some good messages on energy but did not say a peep about retail competition. To the extent we can make it an issue in the campaign, it gets more visibility. We should also consider pushing on John White and company to make green DA a reality. Some DA is better than none.

The fee and rules issue is going to be a grind and likely at the CPUC. As I've said, it's been hand-to-hand combat with the utilities since 9-20-01. I would like to find a way to work better with the customer groups, because in the end, they are the ones who can carry the day. Nobody really wants to listen to a bunch of ESPs. The problem is that no one really cares as much as we do -- it's our business afterall.

I can't make any promises about Enron or Enron/Dynegy continuing in AReM and I can't predict if/when we might bow out. I think AReM is going to have to pick its spots this year and minimize its expenses whatever it does. Unfortunately, our experience at the CPUC has been bad. That would argue for a minimum of activity in the cases and a maximum of lobbying at the Commission and the Leg/Admin. We have to remember that we get all excited about these cases and the issues only to be ignored or harmed when decisions are reached -- especially with certain ALJs. Davis can still get another appointee and things will look even bleaker then.

This may sound depressing, but that's reality. We are the ones carrying on the good fight and the fight must continue.

Have a good meeting. Aloha.

Sue