Here's a first-crack at a letter for the CEOs to sign.  I couldn't open 
Microsoft Word, so I apologize it's in the body of this email.  Once we 
circulate a draft and get a version people are comfortable with, I'd 
recommend the following actions (but not by Enron):
 * send the letter to the governor and all members of the Legislature
 * run the letter as a full-page ad in key newspapers
 * advance the story to the media for earned coverage (possible editorial 
boards w/ several CEOs -- not Enron)  We could have an effort in both 
Northern and Southern California -- w/ different CEOs to emphasize the 
bipartisanship and diversity of support for the solution.  This media effort 
should target broadcast, as well.

Edit away!

******************************************************************************
***************************************************

An open letter to Governor Davis and members of the Legislature:

California's energy crisis has persisted and worsened over the past 12 
months.  We have already experienced blackouts, and with summer fast 
approaching, unless something is done immediately, the worst is yet to come.  
The North American Electric Reliability Council released a report last week 
that said California is expected to experience more than 260 hours of 
blackouts this summer -- that's ten days without power.  California's economy 
cannot afford to grind to a halt because we have no power.  

Two of the state's largest companies have been thrown into financial 
turmoil.  Pacific Gas & Electric has already declared bankruptcy, and 
Southern California Edison is on the brink.  With California spending more 
than $____ a day on power and depleting cash reserves, the State's credit 
rating has been downgraded -- only Louisiana has a lower rating.  

While there has been much talk of potential solutions, none have advanced.   
There is too much at risk to delay another day.  Therefore, we, the 
undersigned, are proposing a comprehensive five-step solution to solve 
California's short- and long-term energy crisis that includes the following:

 1.  Decrease demand -- There is no time to build power plants or get 
additional generation on-line in time for  this summer.  Therefore, the only 
option to reduce the impact of an electricity shortage this summer is to 
reduce  consumption.  This can be accomplished in several ways:
  Real-time pricing --  prices should reflect the cost of producing 
electricity, which varies throughout the   day.  When demand is at a peak, 
prices are high; when demand drops, so do prices.  This will give   customers 
a financial incentive to conserve and take simple actions, like turning the 
thermostat up two   degrees.
  Demand buy-down programs -- If a customer is willing to pay for kilowatts 
used, he/she ought to be   compensated for kilowatts saved. NEED TO SAY WHO 
WILL PAY FOR THIS

 2. Increase supply -- The Governor has taken an important first step by 
using his executive powers to   streamline power plant siting.  While the 
state currently has approved 13 power plants totaling 8,512 megawatts,  it's 
not enough.  California ought to be the most attractive place to build power 
plants, transmission lines and  pipelines; instead, it's the least.  There is 
a backlog of turbines for power plant development, yet of the 1,000  
backlogged, only 24 are earmarked for California because the state has sent 
an "anywhere but here" message  to investors.  The state's political leaders 
must reject action that discourages investment, including:
  * Legislation that would impose a "windfall profits" tax on power sold in 
California and make it a felony to   sell power at a price that the state 
finds unreasonable.
  * Continued calls for price caps in wholesale power market -- caps only 
create shortages and fail to   reduce  prices.
  * Investigations into allegations that suppliers manipulated power prices.

 3. Make the utilities creditworthy -- Under California law, utilities are 
forced to charge frozen rates, but they  must buy power at higher wholesale 
prices.  The utilities' inability to recover their costs has forced PG&E 
into  bankruptcy and threatens Southern California Edison's solvency.  The 
solution to restoring the utilities'   creditworthiness is to set rates that 
cover the utilities' past debts and future costs -- and then give customers 
the  power to reduce their bills by conserving or by choosing a competitive 
energy supplier.

 4. Get California out of the power-buying business -- Once rate increases 
return the utilities to   creditworthiness, the role of buying power can be 
returned to the utility very quickly -- within three to six months.   The 
state should not buy the transmission grid to raise additional cash for the 
utilities.  There are other ways to  raise funds: for example, a miniscule 
rate increase of two-tenths of one cent per kilowatt hour could accomplish  
the same thing -- and keep the power expertise in the hands of the utilities.

 5. Get deregulation right in California -- California never deregulated.  In 
fact, today there is more   regulation than ever before.  For true 
deregulation to exist, every consumer and business in the state must have  
the right to hire and fire their energy service provider.  When California 
passed a law this year authorizing the  state to buy power, that same law 
(AB1X)  called for an end to customer choice (also called "direct access.")   
California must rescind AB1X and reinstate the right of customers to choose 
their energy service provider.  ARE  WE INCLUDING CORE/NON-CORE? (i can't 
remember...)

We urge the Legislature and Governor to enact legislation that includes these 
five components and sets California on the path to economic stability.  The 
longer the delay, the bigger the problem.  The time to act is now.

CEO

CEO

etc.