Message-ID: <18076847.1075851005637.JavaMail.evans@thyme> Date: Fri, 8 Sep 2000 04:43:00 -0700 (PDT) From: jeff.dasovich@enron.com To: mark.schroeder@enron.com Subject: Re: retail competition in electricity Cc: skean@enron.com, richard.shapiro@enron.com, susan.mara@enron.com, kyran.hanks@enron.com, james.steffes@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=ANSI_X3.4-1968 Content-Transfer-Encoding: 7bit Bcc: skean@enron.com, richard.shapiro@enron.com, susan.mara@enron.com, kyran.hanks@enron.com, james.steffes@enron.com X-From: Jeff Dasovich X-To: Mark Schroeder X-cc: skean@enron.com, Richard Shapiro, Susan J Mara, Kyran Hanks, James D Steffes X-bcc: X-Folder: \Steven_Kean_Oct2001_2\Notes Folders\Attachments X-Origin: KEAN-S X-FileName: skean.nsf Folks: My apologies in advance if I vent somewhat. Briefly, some of you know that I attended Berkeley's Policy School. I have been very closely involved with the conference Severin describes in his note to Littlechild. I have been working to try to establish a joint venture between the policy and business schools at Berkeley to hold an "energy summit," where national and international energy leaders would converge on California (under the auspices of UC Berkeley) to talk energy policy. Jim Steffes has helped a lot in brainstorming the idea. In short,, our goal was to have a group of prominent folks squarely refute the extremely retrograde notions of "turn the clock back" that the Governor of California's two most recent appointees have been articulating at every opportunity over the past several months, and re-seize the agenda in California. The "energy heads of state" at the summit would come up with solutions for going forward. The concept (and invitees) that Severin describes is loosely based on proposals I have made to the "steering committee." However, for reasons I won't bore you with in this note, the effort has frankly turned into a fiasco. I notified the group this week that Enron would not be participating, that they should go forward with the conference without us, and that I would help somewhat (contacts, etc.) when (and if) they ever came to agreement on the agenda and particpants. From my perspective, the effort turned out to be a rather big disappointment. I urge us not to get involved or contribute $$s. At this juncture I would recommend against having Ken Lay participate. Depending on how the thing shapes up, we may or may not want to have someone at a substantially lower level participate, but I'm pessimistic at this point. If anyone would like to discuss my reasons in more detail, I'd be happy to discuss. I still think the idea of an energy summit is very promising. But the forum that these folks are creating ain't the right one. Best, Jeff Mark Schroeder@ECT 09/08/2000 04:09 AM To: Steven J Kean/NA/Enron@Enron, Richard Shapiro/HOU/EES@EES, Susan J Mara/SFO/EES@EES, Jeff Dasovich/SFO/EES@EES cc: Kyran Hanks/LON/ECT@ECT Subject: retail competition in electricity Please see Professor Littlechild's note to our former Deputy Chairman for Enron Europe, Ralph Hodge. Ralph is no longer with us. Let me know if you would like to support ($$) Littlechild coming to California. He was a somewhat passive regulator (too academic), but is a credible authority, having written what is regarded as one of the seminal works on incentive regulation, which is the model in use in the UK. He likes Enron, and has been trying to get us to pay him for some work for some time. No need for it here in the UK, but I would use him in emerging markets given the opportunity. Let me have your thoughts at your earliest convenience. thanks mcs ---------------------- Forwarded by Mark Schroeder/LON/ECT on 08/09/2000 10:08 --------------------------- Enron Capital & Trade Resources Corp. From: "Stephen Littlechild" 08/09/2000 10:00 To: "Ralph Hodge" cc: "Mark Schroeder" , "Kyran Hanks" Subject: retail competition in electricity Dear Ralph ? I have just written a?paper on retail competition in electricity, arguing that Joskow, Hogan and Ruff, and California, have got it all wrong, both in theory and in practice.? It is forthcoming shortly in the DAE and Judge Institute working paper series at Cambridge, but I thought you might like to see a copy now (attached). ? This is obviously a hot issue in California at present, and this morning I received an invitation to participate?in a debate there in November (copy forwarded separately). It seems that Enron is also to be invited. I have no other commitments in the US at that time.? Is is something that Enron might be interested in supporting, or for that matter developing further? ? We spoke some time ago about the Common Carriage Consultative Working Group at Ofwat. I did in fact aprticipate in that, along with Kyran Hanks. It was a real eye-opener, to see how little awareness there was of the basic conditions conducive to competition, like separate businesses and accounts.? I'm not sure whether Enron is pursuing this now or not. No doubt lots of other things going on. ? I should be interested to hear from you on retail competition.? I am copying this to Mark Schroeder and Kyran. ? With regards ? Stephen - Summary 22Aug2000.doc - Why we need electricity retailers 22Aug00.doc