Message-ID: <28277550.1075848057608.JavaMail.evans@thyme> Date: Thu, 18 Jan 2001 05:34:00 -0800 (PST) From: james.steffes@enron.com To: jeff.dasovich@enron.com, mark.palmer@enron.com, richard.shapiro@enron.com, steven.kean@enron.com, sandra.mccubbin@enron.com Subject: TALKING POINTS ON CALIF BUILDING NEW POWER PLANTS Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: James D Steffes X-To: Jeff Dasovich, Mark Palmer, Richard Shapiro, Steven J Kean, Sandra McCubbin X-cc: X-bcc: X-Folder: \Steven_Kean_June2001_3\Notes Folders\California X-Origin: KEAN-S X-FileName: skean.nsf Jeff -- Here are my thoughts. Add / delete any The state has properly identified (finally) the fundamental problem in California - the shortage of supply in a market with growing demand. Recognizing the core problem is at least half of the battle. But rather than remove the current roadblocks to increased generation and transmission investment, California appears to be choosing to own and operate generation and transmission. The best solution is to have the state allow private companies to site new generation. Given government's other large scale participation into public power - TVA, BPA, NYPA - it is highly unlikely that trying to set up a state agency to do something that private capital is willing and able to do is rational or in the public interest. Issuing debt costs consumers money and takes away capital from other important issues - new roads and new schools. We would be willing to work with the Legislature to help craft a bill that gets more supply in California quickly, efficiently, and in an environmentally sound manner, but this draft only creates more bureaucracy.