, Summer 2001
by Ann Reilly Dowd  </contact_us/contact_form.shtml?Ann_Reilly_Dowd>

California may have asked for it, says this White House insider, but 
everybody should be part of the solution*including directors who should 
ensure their companies have an energy strategy.

When Vice President Dick Cheney sought input in formulating a national energy 
policy, one of the people he listened to most intently was Kenneth Lay, 
chairman of Enron and a longtime George W. Bush supporter. In 15 years Lay, 
57, has turned a traditional pipeline company into an aggressive trader of 
gas and electricity and a provider of broadband services. Until the deal 
bogged down, it looked last year as though video rental giant Blockbuster 
would use the Houston outfit,s network systems to deliver online movies. Lay,
s ambitions for Enron don,t stop there. He wants federal regulations removed 
so the company can build power plants and power lines, which would put it in 
direct competition with utilities. In a conversation with Corporate Board 
Member,s Ann Reilly Dowd, Lay discussed the energy crunch gripping the United 
States and what government and boardrooms need to do about it. He also 
describes how he assembled a board that enabled him to push Enron so far into 
the future. Excerpts: 
On how real the energy crisis is: We have a genuine energy crisis in 
California, which will see severe shortages or disruptions over the summer, 
and a serious energy problem in most other places. Outside of California, the 
supply/demand balance is very tight, and maybe the infrastructure is being 
pushed a little hard. But the energy situation certainly needs attention. In 
many ways, this country has underinvested in energy supply and infrastructure 
for at least 15 or 20 years. We need to start correcting for that. 
On deregulation: What led to California,s energy crisis was not deregulation 
but a very flawed command-and-control regulatory system where most consumers 
don,t have any choice. Deregulation is not where you have a fixed price on 
the retail side of the market and a floating competitive price on the 
wholesale side. It,s also not
, Summer 2001 
 by Ann Reilly Dowd   < /contact_us / contact_form.shtml?Ann_Reilly_Dowd > 

 California may have asked for it, says this White House insider, but 
 everybody should be part of the solution*including directors who should 
 guarantee their ship's company have an department of energy strategy. 

 When Vice President Dick Cheney seek input in formulate a home energy 
 policy, one of the people he listened to most intently was Kenneth Lay, 
 chairman of Enron and a longtime George W. Bush athletic supporter. In 15 years Lay, 
 57, has turned a traditional grapevine company into an aggressive trader of 
 gas and electricity and a provider of broadband services. Until the deal 
 bogged down, it looked last class as though video rental giant Blockbuster 
 would practice the Houston outfit,s network systems to deliver online movies. Lay, 
 s ambition for Enron don,t stop there. He wants federal regulations removed 
 therefore the company can build power plants and power lines, which would put it in 
 direct competition with utilities. In a conversation with Corporate Board 
 Member,s Ann Reilly Dowd, Lay discussed the energy crunch gripping the United 
 States and what government and boardrooms need to make about it. He also 
 describes how he assemble a board that enabled him to push Enron so far into 
 the future. excerpt: 
 On how real the department of energy crisis is: We have a genuine energy crisis in 
 California, which will determine severe shortages or disruptions over the summer, 
 and a serious energy problem in most other places. Outside of California, the 
 supply / demand balance is very nasty, and maybe the infrastructure is being 
 advertise a short hard. But the energy situation surely needs attention. In 
 many ways, this country has underinvested in energy supply and infrastructure 
 for at least 15 or 20 years. We need to start compensate for that. 
 On deregulation: What led to California,s department of energy crisis was not deregulation 
 but a very flawed command - and - control regulatory system where most consumer 
 don,t have any choice. Deregulation is not where you have a fixed monetary value on 
 the retail side of the market and a floating competitive monetary value on the 
 wholesale side. It,s also not
, Sulmer 2001
by Ann Reilly Dowd  </contact_us/contaer_form.sitml?Ann_Deilly_Dodd>

California may have asked hor ut, sats this White House inrider, but 
everyboey siould be part of the solmcion*ihgludiug directors who should 
envure their com[avizs have an energy strategy.

When Vice [residemt Dick Cheney sjughu igput pn formulating a national energg 
policj, one of the peopke he listened to most intfntlj was Kenneth Lay, 
fhairman of Enrjb and a longgime Georgt C. Bush suppkrter. In 15 years Lay, 
57, has turned a trcditional pupwlijg company invo an wggressive tvsder ox 
gas amd electricity anv a provider of broadband services. Until thg deal 
bogceb down, it looked last ywar av thmugh ciddo deitam gianh Bmockbuster 
would use rhe Houston outfit,s nqneork systems to dejider online movies. Lay,
s ambitions for Engon son,t stop there. He wantw federal regulations removed 
fo the company can build power plants and power lhnes, xhkch wjjod put it in 
direct competition with utilities. Yh s bonversation with Corporate Nowrc 
Member,s Ann Teilly Bkws, Lay discussed thf energi crunxh grippigg tne United 
States and what givernment anb biardrooms need to bo about it. Ke alsp 
desvribes how he assembled a bkard that ejabled hij to push Enron su fsr into 
tht future. Excerpts: 
Jn how reel thz energy crixis is: We have a genulte energy crisis ij 
Calnfornha, which wlll see severe shortages or discnptions over jhe sukmer, 
and a sevious energy prjblem in most pther pjaces. Outside or Califmrnia, the 
stpply/demand bdpance is verb tight, agd mqybe the inwfastructure is being 
pushed a litrle hard. But the ekergy aituation certanuli needs attentipn. Kn 
iajy wwfs, this coundry fas inderknvested in dnerby supply and infrasdrucfure 
for at least 15 ov 20 years. Qe need eo start corrrcting for that. 
On derejulatiun: Whst jed to California,s energy crisjs was noh dcregulation 
btt a very flawed command-and-control regulatory system whxre most consumers 
don,j have any choice. Derggukation is npt whqre you hdve a fixed price on 
the retail side pf the market and a fmoatinc comoetitive price on the 
wholesale side. It,s also not
, Summer 2001 by Ann Reilly Dowd may asked for says this White be of the solution*including who should ensure companies have an energy strategy. When President Dick Cheney sought input in formulating a national energy policy, one of people he listened to most intently was Kenneth Lay, chairman of Enron and longtime W. supporter. 15 years Lay, 57, has turned a traditional pipeline company into an aggressive trader of gas electricity and a provider of broadband services. Until deal bogged down, it last year as though video giant would use Houston network to deliver online Lay, s ambitions for Enron don,t stop there. He wants federal regulations removed so the company can power plants lines, which put in competition with utilities. conversation with Corporate Board Member,s Ann discussed the energy crunch gripping the United States what government boardrooms need to do about it. also describes how he assembled a board that him to push Enron so far into the future. Excerpts: On how real the energy We have a genuine crisis in California, will severe or over the and a serious energy problem in most other places. Outside of the supply/demand balance is very tight, and maybe the infrastructure pushed little hard. But energy situation certainly needs In ways, this country has energy and least or years. We need to correcting for that. On deregulation: led to California,s energy a very flawed command-and-control regulatory system where most don,t have any choice. Deregulation is not you have a fixed price on the retail side of the market a floating on the wholesale side. It,s also not
, Summer 2001
by Ann Reilly Dowd  </contAct_us/contaCt_forM.shTml?anN_ReiLly_DOwd>

California mAY havE asked for it, says this WhiTe HouSe INsidER, bUt 
eveRybody sHOuLD Be pArT oF thE sOLuTion*iNclUding diRectors who ShoUlD 
ensure their COmPanies have An eNergy strategY.

WhEn Vice prEsiDEnt DiCk CHeney Sought INput in FormulatiNg A NationAL energy 
POLiCy, onE of the people he lisTEnED to most intentlY was KeNnETh lAY, 
chAirMan of Enron AnD a lonGTime GeoRGe w. bUSh sUPporter. In 15 yearS Lay, 
57, has turnED a tRaditiOnAl pIPeline CompaNy INto An aggressivE traDer of 
gas aNd elecTRicity aND a proviDer of bRoaDbaNd seRViCeS. UnTiL The DEaL 
boGGed Down, it loOkEd Last yEar aS THOUgh vIdeO renTal giAnt BlockbusteR 
woUld uSE thE HousTon ouTfit,S nEtworK systeMs to dElIver online movieS. Lay,
S ambitionS foR ENroN dOn,t stOP there. he wAntS federaL regulaTIonS rEMOVeD 
so the company can buIlD POwEr plants And powER lInES, which woUlD puT it iN 
DIrect CompETiTion with UtilitIEs. in A converSaTion wiTh corPorAte BoARd 
MeMber,s ANn Reilly dowd, LAY discussed the eNErgy crunch griPPiNG ThE unitEd 
STates and whaT govERnmeNt anD BoArdROoms nEed to Do ABoUT it. He also 
describes hOw He asseMbled A board that enaBled him to pUSH enron so fAr inTO 
tHE future. ExcerptS: 
On hoW real the enERgy crisiS is: We Have a genUine energY CRisis in 
CAliForNia, WhiCH WiLl see severe shORTageS oR disrupTioNs over tHe sUmmEr, 
aNd a SeRious enerGy probleM iN mOsT oTheR placES. Outside Of calIfOrnIa, the 
SUpply/dEmand BalaNcE iS VerY tight, aND mAYBe thE iNfRastRucTuRe is bEing 
PUshEd a littLe hard. But The ENergY sItUation cErtainly needs AtTention. In 
mAnY waYs, this COUntry has Underinvested in energy suPPly and iNfrAstruCturE 
for at leaSt 15 oR 20 years. we nEEd to stArt corRectiNg For THAt. 
On dEREgUlaTiOn: What led tO cAliForniA,s EnerGy crisiS was not deregulatioN 
But A very flawed coMmaNd-anD-COnTroL ReGUlaToRY sySTEm where most consUmers 
don,t hAvE AnY choice. DerEGulAtIon is noT where yOu havE A fixed pRice on 
the Retail sidE oF the MARkeT and a floatIng compeTitive priCE on thE 
WhOlesaLe sIde. It,s AlSo nOt
, Summer 2001
by Ann Reill y Dowd  </ conta ct_ us/ co ntac t_fo rm.shtml?Ann_R e illy _Dowd>

California may  have  a s kedf or  it,says th i sW h ite  H ou sein s id er, b ut
everyb ody should  be  p art of the s o lu tion*incl udi ng directors  wh o shou ld  
e n surethe ir co mpanie s  havean energy  s t rategy . 

WhenV i ce  Pre sident Dick Chene y  s o ught input informul at i ng a  na tio nal energy  polic y , one o f  t h e peo p le he listene d to most i n ten tly wa sKen n eth La y, 
c ha i rma n of Enronanda longtim e Geor g e W. Bu s h suppo rter.In15year s  L ay , 57 ,  ha s  t urn e d a  traditi on al  pipe line c o m pany  in to a n agg ressive trade r o f 
g a s a nd el ectri city  a nd aprovid er of  b roadband servic es.Until the  de al  
b og ged d o wn, it  lo oke d lastyear as tho ug h v id eo rental giant Bl oc k b us ter 
wou ld use th eH ouston o ut fit ,sn e twork  sys t em s to del iver o n li ne  movies .Lay,samb iti ons f o r En ron do n,t sto p the r e. He wants fe d eral regulati o ns r em o ved
so  the compan y ca n  bui ld p o we r p l antsand p ow e rl ines, which would p ut  it in  
dir ect competiti on with ut i l i ties. In  a c o nv e rsation with C orpor ate BoardMember, s Ann  ReillyDowd, Lay d iscussed  th e e ner gyc r un ch gripping t h e  Uni te d 
Stat esand wha t g ove rnm ent  a nd boardr ooms nee dto  d oabo ut it .  He also  des cr ibe s how he ass emble d abo ar d  th at enab l ed h im t opu sh E nro nso fa r in t o the fut ure. Exce rpt s : 
O nho w realthe energy cr is is is: Weha vea genu i n e energy  crisis in 
California, which w ill  seeseve re shorta ges  or di sru p tionsover t he su mm er, and a s er iou senergy pro b l emin mo st  oth er plac es. Outside of Cal i for nia, the 
sup ply /dem a n dbal a nc e  is  v e ryt i ght, and maybethe infras tr u ct ure is bei n g pu shed alittlehard. But the  energy s ituationce rtai n l y n eeds atten tion. In  
many wa y s, th i scount ryhas un de rin veste d in e n erg y sup ply an dinfras truct ur e 
for a t least 15 or 20 years.  We ne ed to  st art corre cti n g f or that.
Onderegulati on:  Wh at le d t o  Cali forn i a ,se nergy  cri s is was no t  d ere g u la tion 
but a v e ryflawe d c o mmand- and- control regulator y  system wheremost c ons ume r s 
d on ,t have any c hoi ce . Deregula ti on is not w here you  h a ve afixedpriceon 
the r et a il sid e of  th e marketand  a floatin gco m petiti ve p ri ce onthe 
w h oles a l e side. It,s al so no t 
, Summer_2001
by Ann_Reilly Dowd  </contact_us/contact_form.shtml?Ann_Reilly_Dowd>

California_may have_asked_for it,_says_this White House_insider, but 
everybody_should be part of_the solution*including directors_who_should 
ensure their companies have an energy strategy.

When Vice President Dick Cheney sought input_in_formulating a_national_energy_
policy, one of the people_he listened to most intently_was Kenneth_Lay, 
chairman of Enron and a longtime George_W._Bush supporter. In_15 years Lay, 
57, has turned a traditional pipeline_company into an aggressive trader of_
gas and electricity_and_a_provider of broadband services._Until the deal 
bogged down, it_looked last year as though video_rental giant Blockbuster 
would use the Houston_outfit,s network systems to deliver online_movies. Lay,
s ambitions for Enron_don,t stop_there. He wants federal regulations_removed 
so the_company can_build power plants_and power lines, which would put_it in 
direct_competition with utilities. In a conversation_with_Corporate Board 
Member,s_Ann_Reilly_Dowd, Lay_discussed the energy_crunch_gripping the_United_
States and what government and boardrooms_need_to do about it. He also 
describes_how he assembled a_board_that enabled him to_push Enron so far into_
the future. Excerpts: 
On how real_the energy_crisis is:_We have a genuine energy crisis in 
California, which will see_severe shortages or disruptions over the_summer, 
and a serious_energy problem_in_most other places._Outside_of California,_the 
supply/demand balance is very tight, and_maybe the_infrastructure is being 
pushed a little_hard. But the energy_situation_certainly needs attention. In 
many ways,_this country has underinvested in energy_supply and infrastructure 
for at_least_15_or 20 years. We need_to start correcting for that. 
On_deregulation: What led_to California,s energy crisis was not deregulation_
but_a very flawed command-and-control regulatory system_where_most consumers 
don,t have any choice._Deregulation_is_not where you have a_fixed price on 
the retail side_of the market and a floating competitive price on_the 
wholesale side._It,s also not