Message-ID: <21437359.1075844203316.JavaMail.evans@thyme> Date: Mon, 7 May 2001 01:59:00 -0700 (PDT) From: aleck.dadson@enron.com To: richard.shapiro@enron.com, james.steffes@enron.com, tom.briggs@enron.com Subject: Meeting with US Consular Staff Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Aleck Dadson X-To: Richard Shapiro, James D Steffes, Tom Briggs X-cc: X-bcc: X-Folder: \Richard_Shapiro_June2001\Notes Folders\All documents X-Origin: SHAPIRO-R X-FileName: rshapiro.nsf FYI - Though Mitch has the gov't's 4 guiding principles wrong. They are: protecting consumers, creating a stable business climate, protecting the environment, and promoting new ways of doing business and alternative sources of energy. ----- Forwarded by Aleck Dadson/TOR/ECT on 05/07/2001 09:03 AM ----- "Optican, Mitchell E." 05/04/2001 01:21 PM To: "'Aleck.Dadson@enron.com'" cc: "Santillo, Patrick" , "Dykeman, Peter" Subject: Today's Meeting Aleck, First, thanks for spending time with us this morning. I think it was a very worthwhile meeting. In your thinking about a scheme to satisfy Harris government political concerns, please consider that the Premier said on May 1 that he is insisting that before deregulation four conditions will have to be met over the next 12 months. These are: a guarantee that consumers will be spared from sharp rate hikes; a reliable supply of power; adequate environmental safeguards; and continued support for alternative power sources. I think we need, therefore, to consider how to freeing up the wholesale market would not cross these four conditions. For example, deregulating the wholesale market would not appear to have any negative impact on environmental safeguards or continued support for alternative power sources. It may be that such a deregulation would have a positive impact (I noted in today's WSJ that ENRON and 4 other companies are calling for CO2 caps). How could deregulating the wholesale market "guarantee the consumers will be spared from sharp rate hikes" and "provide a reliable supply of power"? I think that any plan for reducing market risk that ENRON could suggest (as you mentioned, Ontario could contract for future deliveries at a set price) would seem to meet that requirement. What needs to be clear is the mechanism whereby this would be done. If an alternative plan is then contrasted with the consequences of ENRON pulling out of the Ontario market and the reciprocity repercussions for OPG in NY, perhaps the Harris government would have the political cover as well as the incentive to qualify its May 1 statement to include a November 2001 opening for the wholesale market. best, Mitch