proposed changes business practices based california energy crisis past several months reviewed detail trading contracts companies conduct trading business california order reduce enron non market risks e g legal credit regulatory volatile commodity markets california future california propose following changes 1 mandatory uniform set provisions trading contracts commodities set language varies commodity commodity trading contracts set one critical tools available enron major default situation critical set language uniform commodity commodity enron get best advantage set least common denominator 2 master netting agreements appropriate counterparties multiple masters significant opposite exposures necessary multiple masters counterparty bridge put place masters whenever significant opposite exposures two masters 3 merge epmi ena power trades done epmi merging epmi ena conducting power trades ena much efficient credit legal point view 4 automatic termination bankruptcy event pge sce situation non defaulting party enron case option terminate rather automatic termination inability pay debts become due let know proposed changes trading contracts entities conduct trading believe changes improve efficiency ii reduce risks iii develop opportunity business certain counterparties iv substantially improve enron position next california type market long range goal conduct much possible trading business single entity single limited number standardized agreements