Subject: FW: California AG's Invesigator/Gray Davis' Customer Contact
From: [email-masked]
To: [email-masked]
Date: Fri, 7 Sep 2001 13:15:58 -0700 (PDT)

-----Original Message-----
From: 	Williams, Robert C.  
Sent:	Friday, September 07, 2001 2:54 PM
To:	Sharp, Vicki; Delainey, David
Cc:	Haedicke, Mark E.; Whalley, Greg; Dietrich, Janet; Leff, Dan; Jim Steffes@ENRON; Sanders, Richard B.
Subject:	RE: California AG's Invesigator/Gray Davis' Customer Contact

We are considering four courses of action:  a suit against Gray Davis for tortious interference with contract; a suit for an injuntion against the AG; a letter of to our customers; and a letter to the press from one of our customers.  

California counsel is researching whether under California law state officials can be sued for tortious conduct.  The answer depends upon whether the State has waived its sovereign immunity that would normally protect it from such suits.  We may not have a definitive answer to this question until Monday.  If California law does provide for such a waiver, we could sue the Governor and the State for tortious interference with conduct.  

An additional obstacle to enjoining the AG is that the California statutes give the AG broad authority as to how he conducts an investigation.  Still, if we can get evidence that the AG's investigator is making untrue or misleading statements or engaging in some other misconduct (we would need an affidavit from a customer as proof), we could go into court to complain that the AG is abusing his authority.

A letter to our customers could cause Davis and Lockyer to back off.  Neither wants negative reports about them circulating among California businessmen (who they primarily see as potential campaign contributors).  The letter would lay out the "truth about the California energy crisis and Davis/Lockyer's misguided and politically-motivated search for a scapegoat."  We could perhaps use Judge Kobayashi's statement in the Dunn subpoena proceeding that the California energy crisis was "created in part by all arms of the California government" to support our case.  We could also use published reports (if verifiable) about the DWR's imprudent purchases of power, and cast the AG's investigation as an attempt to divert attention from Davis/Lockyer's lack of any success in addressing the the crisis.  We could thank our customers for not being swayed by the demagogery and rhetoric, and for continuing to be our business partners.  We would want this to be positive in tone.

A fourth response would be a letter from one (or more) of our customers to a newspaper complaining about the harassment by the AG's office.  This letter could make some of the same points as the letter from us to our customers. 

We are still thinking of other approaches.  We will have the answers to the legal questions buttoned up by Monday at the latest.  Please call me with any questions or comments (x52402).

 -----Original Message-----
From: 	Sharp, Vicki  
Sent:	Thursday, September 06, 2001 1:05 PM
To:	Delainey, David
Cc:	Haedicke, Mark E.; Whalley, Greg; Dietrich, Janet; Leff, Dan; Williams, Robert C.; Jim Steffes@ENRON
Subject:	Re: SF Giants / California AG's Office Communication

I have already asked Bob to look into this.  

 
David W Delainey
09/06/2001 12:27 PM
To:	Vicki Sharp/HOU/EES@EES, Mark E Haedicke/HOU/ECT
cc:	Greg Whalley/HOU/ECT, Janet Dietrich/HOU/EES@EES, Dan Leff/HOU/EES@EES 
Subject:	SF Giants / California AG's Office Communication

Vicki/Mark, the harrassment of EES's customers in California continues at great pace - it seems like I am getting messages like this everyday.  Can we get a restraining order/sue the government, etc.

This is going to start hurting business soon and is clearly a witch hunt....

Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/EES on 09/06/2001 12:23 PM ---------------------------

Dan Leff
09/06/2001 11:54 AM
To:	Robert C Williams/Enron@EnronXGate, Vicki Sharp/HOU/EES@EES
cc:	David Tagliarino/Enron@EnronXGate, Evan Hughes/HOU/EES@EES, Janet Dietrich/HOU/EES@EES, David W Delainey/HOU/EES@EES, Jeremy Blachman/HOU/EES@EES, James D Steffes/Enron@EnronXGate 
Subject:	SF Giants / California AG's Office Communication

David Tagliarino, Enron Sports Marketing Group, received a call today from John Yee, CFO of the SF Giants.  David, John and I got back on the phone this morning.  Following is a summary of our discussion:

John Yee, CFO, SF Giants, received a letter from the CA AG's office requesting their cooperation in an "....investigation concerning Enron....".  (John will fax that letter to me and I will circulate it)
John called the AG's office per their request in the letter received
The AG's office was digging for a bunch of information:
total MWH consumed
contract start date
term of contract
general questions about T's & C's
whether Enron had cancelled the contract
who was supplying electricity
copies of the agreements and letters of communication from Enron to the SF Giants
John was generally responsive and indicated that Enron has been great, has honored its contract, still has a contract in place, etc.
John pushed back on supplying any more information without a written request from the AG's office, and then also indicated that they would only supply what was required by law
The AG's office responded by indicating that they may have to subpoena the Giants
John will wait and see what the AG's office does
He will keep us in the communication loop and make sure that we have copies of the communication from the AG's office

Thanks - Dan

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