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Date: Fri, 26 Jan 2001 10:44:00 -0800 (PST)
From: james.steffes@enron.com
To: joseph.kelliher@hq.doe.gov
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	jeff.dasovich@enron.com, steven.kean@enron.com
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Mr. Joe Kelliher
Advisor to the Secretary
US Department of Energy

Joe -

Attached please find our thoughts on California solutions. 

In the short-term, California must provide support to the Utilities to 
maintain reliablity (as they are doing with CDWR purchases).  In the 
longer-term, California must increase supply and reduce demand, as well as 
bring retail rates in line with the cost of a reasonable portfolio of 
electricity supply.

Hope this helps.  If you need anything, please feel free to call me at 
713-853-7673 (work) or 713-851-2499 (cell)

Jim Steffes



