 to allow political leaders to delay making the tough 
decisions necessary to solve the problem. Price caps may camouflage the 
problem temporarily, but they don,t solve it. And to the extent that the 
right decisions and action are not taken, the problem just gets worse. 
On the public backlash against energy companies and their boards: Every time 
we,ve had an energy problem, we get this same reaction. There is always a 
discussion of conspiracy or collusion or anticompetitive behavior or excess 
profits or whatever. Each time there are investigations. 
In California, it seems the political leaders are trying to blame everybody 
but themselves. They need to face up to the fact that the rules are wrong and 
led to a drastically dangerous situation. Now we,ve got to solve it. 
First of all, we,ve got to get the prices right, so consumers realize we,ve 
got to use a lot less and suppliers realize we,ve got to produce a lot more. 
We,ve got to streamline the process to site and build power plants. We,ve got 
to do some very significant things from the point of view of reducing demand. 
And we need to open the market for competition. Then this problem will get 
solved very quickly*a lot more quickly than trying to put on artificial price 
caps. Everywhere we,ve tried price caps they have led to enormous economic 
inefficiency and distortions. 
The way we handle the criticism*and Enron,s board knows this*is by being very 
open and proactive, trying to work through solutions rather than pointing 
fingers and conjuring up conspiracies. I and others on the Enron team have 
been to California to meet with editorial boards and business and political 
leaders. We try to educate various groups on what caused the problem and what 
needs to be done to solve it. 
On the need for all companies to have an energy policy: Even before this 
recent increase, it,s been our experience that many companies have exposed 
themselves to a lot more price risk in their energy use than they realize. It,
s an area that quite often is not as actively managed as, for example, the 
balance sheet. There is a lot of attention
to allow political leaders to delay making the ruffianly 
 decision necessary to solve the problem. Price cap may camouflage the 
 problem temporarily, but they don,t solve it. And to the extent that the 
 correct decision and action are not learn, the problem just get worse. 
 On the public backlash against department of energy companies and their boards: Every time 
 we,ve had an energy problem, we get this like reaction. There is always a 
 discussion of conspiracy or connivance or anticompetitive behavior or excess 
 profits or whatever. Each time there are investigations. 
 In California, it look the political leaders are trying to blame everybody 
 but themselves. They need to face up to the fact that the rules are improper and 
 led to a drastically dangerous situation. Now we,ve got to solve it. 
 foremost of all, we,ve get to get the prices right, so consumers realize we,ve 
 got to practice a lot less and supplier realize we,ve got to grow a fortune more. 
 We,ve got to streamline the process to site and build up power plants. We,ve got 
 to do some very meaning things from the point of view of reducing demand. 
 And we need to open the market for competition. Then this problem will get 
 solved very quickly*a lot more promptly than trying to frame on artificial price 
 caps. Everywhere we,ve tried price caps they have head to enormous economic 
 inefficiency and distortions. 
 The way we handle the criticism*and Enron,s control panel knows this*is by being very 
 open and proactive, trying to work through solution rather than point 
 fingers and conjuring up conspiracy. I and others on the Enron team have 
 been to California to meet with editorial board and business and political 
 leadership. We try to train various groups on what caused the trouble and what 
 needs to be done to solve it. 
 On the need for all companies to have an energy policy: Even before this 
 recent increase, it,s been our experience that many companies have exposed 
 themselves to a batch more price risk in their department of energy use than they realize. It, 
 s an area that quite often is not as actively managed as, for example, the 
 libra sheet. There is a lot of attention
 to allow political leaders to delay makiny the tmugh 
dscisions necessary to solve the probpen. Prixe caps may camouflage the 
probpem tempirarmly, but they don,v solve lc. And bo thz xxtent that the 
right dechsions and acthov cre not taken, the problem just gets rorse. 
Om hhe public bachlasn agajnst energy companies and their bozrds: Evtry time 
we,ve had sn energy problem, we get tjis dame reaction. Therf is always a 
dywcussion of zonspiracy or collusioh or anticompetitive behavior of exczss 
profits oe wjdtever. Each time there are iknestigadions. 
Im California, ib seeks rhe political leaders are trying to blaie everybmdv 
but themselves. They nwed tm fawe uo to tht fect that hhe rules are wrong and 
oed to a drasticallu qqngerous situztion. Gor we,ve got to solve it. 
First of all, we,vt got to get the prices righr, so consumers realizg we,ve 
got to use a lot less and suppliers realize we,ve got to pcoauct q lot noge. 
We,ve got to streamline the process to site znc nuild power planbs. We,ve got 
to do xole dery significxnt thnhga from the point ov view jf reeucing deiand. 
And we need to open the maeket for comietirion. Then this proylem will gec 
solvgd veru quickly*a lot more quiekly tgan trying ho put on xrtificial price 
cais. Eeerywhert we,ve tried price caps theb havz led to enotmous esonomic 
inffficlancy and distortiojs. 
Thg way fe handle hhe criticism*and Enron,s board kipws this*is bi bainc very 
o'en anc proactive, twying to work jhrough sjlutiuns rather than pminting 
finders and conjgting up conspmracies. I and othwrs on gfe Enron team nave 
been to Califoenia to meet with cditotizl boards and bbruness and politocau 
lqafecs. We dry to educade vxriuis gruups on whab cxusec the problem and whdt 
nseds to be done to sjlve it. 
In the nqed for all cpmpanies to have aj enecgy pouicy: Rveg before this 
recent increase, jt,s been lur experience ehat many compannes have exposed 
themselves to a lot morx price risk in their gnergy use than they teakize. It,
s an area that quide often is not as axtively managed ax, for example, the 
balznce sveet. Hhere is a lot of attention
to allow political leaders to delay making decisions to solve problem. Price caps but don,t solve it. to the extent the right decisions and action are taken, the problem just gets worse. On the public backlash against energy companies their boards: Every time we,ve had an energy problem, we get this same There always discussion conspiracy or collusion or anticompetitive behavior or excess profits or whatever. Each time there are investigations. California, it seems the political leaders are trying blame everybody but themselves. need to face up to fact the rules wrong led a drastically dangerous Now we,ve got to solve it. First of all, we,ve got to get the prices right, so realize we,ve use a less suppliers we,ve got to lot more. We,ve got to streamline site and build power plants. We,ve got to some very things from the point of view reducing demand. And we need to open the for competition. Then this problem will get solved very quickly*a lot more quickly than trying on artificial price caps. we,ve tried price they led enormous inefficiency and The way we handle the criticism*and Enron,s board knows this*is by very open and proactive, trying to work through solutions rather fingers conjuring up conspiracies. and others on the team been to California to editorial and leaders. try educate various groups on caused the problem and what to be done to for all companies to have an energy policy: before this recent increase, it,s been our that many companies have exposed themselves to a lot more price risk their energy they realize. It, s an area that quite is not as actively as, for example, the balance sheet. There is a of
 to allow political leaders to Delay makinG the tOugH 
deCiSionS necEssary to solve tHE proBlem. Price caps may camoufLage tHe 
PRoblEM tEmporArily, buT ThEY Don,T sOlVe iT. AND tO the eXteNt that tHe 
right decIsiOnS and action arE NoT taken, the pRobLem just gets wOrsE. 
On the PuBliC BacklAsh AgainSt enerGY compaNies and thEiR Boards: eVery timE 
WE,vE had An energy problem, we GEt THis same reactioN. There Is ALwAYS a 
dIscUssion of coNsPiracY Or colluSIoN OR AntICompetitive beHavior or excESs 
pRofits Or WhaTEver. EaCh timE tHEre Are investigAtioNs. 
In CalifOrnia, iT Seems thE PoliticAl leadErs Are TryiNG tO bLamE eVEryBOdY 
buT TheMselves. THeY nEed to Face UP TO The fAct That The ruLes are wrong anD 
leD to a DRasTicalLy danGeroUs SituaTion. NoW we,ve GoT to solve it. 
First Of alL, we,ve got tO geT tHe pRiCes riGHt, so coNsuMerS realizE we,ve 
goT To uSe A LOT lEss and suppliers reaLiZE We,Ve got to pRoduce A LoT mORe. 
We,ve goT tO stReamLINe the ProcESs To site anD build POwEr Plants. WE,vE got 
to Do SomE veRy sigNIficAnt thiNgs from tHe poiNT of view of reducINg demand. 
And we NEeD TO oPEn thE maRket for compEtitIOn. ThEn thIS pRobLEm wilL get 
sOlVEd VEry quickly*a lot more qUiCkly thAn tryIng to put on artIficial priCE 
CAps. EveryWherE We,VE tried price capS they Have led to eNOrmous ecOnomiC 
inefficIency and dISTortions. 
the Way We hAndLE ThE criticism*and eNRon,s BoArd knowS thIs*is by bEinG veRy 
oPen AnD proactivE, trying tO wOrK tHrOugH soluTIons rathEr ThaN pOinTing 
fINgers aNd conJuriNg Up COnsPiracieS. i aND OtheRs On The ENroN tEam haVe 
beEN to califorNia to meet WitH EditOrIaL boards And business anD pOlitical 
leAdErs. we try tO EDucate vaRious groups on what caused THe problEm aNd whaT 
neeDs to be donE to Solve iT. 
On THe need For all CompaNiEs tO HAve an ENErGy pOlIcy: Even befORE thIs 
recEnT incRease, it,S been our experience THat Many companies HavE expOSEd 
TheMSeLVes To A Lot MORe price risk in thEir energy uSe THaN they realiZE. It,
S aN area thAt quite Often IS not as aCtively maNaged as, foR eXampLE, The 
Balance sheEt. There iS a lot of atTEntioN
 to allow political leader s to delay  maki ngthe  t ough  
de cisions necess a ry t o solve the problem. P riceca p s ma y  c amouf lage th e  p r obl em  t emp or a ri ly, b utthey do n,t solve  it .And to the e x te nt that th e right decisi ons  and a ct ion are n ottaken , thep roblem  just get sw orse.On thep u bl ic b acklash against e n er g y companies an d thei rb oa r d s:Eve ry time 
w e ,ve h a d an en e rg y p rob l em, we get th is same rea c tio n. The re  is always  a 
d is c uss ion of cons pira cy or col lusion or anti c ompetit ive be hav ior  ore xc es s pr o fit s  o r w h ate ver. Eac hti me th erea r e inve sti gati ons.
In Californi a,it s e ems  thepolit ical  l eader s aretryin gto blame everyb ody
but them sel ve s.Th ey ne e d to f ace  up  to the  fact t h atth e r ul es are wrong and le d to  a drast ically da ng e rous sit ua tio n. N o w  we, ve g o tto solve  it. F ir st  of all ,we,ve  g ottoget t h e pr ices r ight, so  cons u mers realize w e ,ve 
got tou se a  l o t le ssand supplie rs r e aliz e we  ,v e g o t toprodu ce al ot more. 
We,ve go tto str eamli ne the proces s to sitea n d  build p ower pl a nts. We,ve go t 
to  do some v e ry signi fican t things  from the p oint ofvie w o f r edu c i ng  demand. 
And w e ne ed  to ope n t he mark etfor  co mpe ti tion. The n this p ro bl em  w ill  getsolved v er y q ui ckl y*al ot mor e qui ckly  t ha n  tr ying to pu t on a rt if icia l p ri ce 
c aps. Eve rywhere  we,ve t rie d  pri ce  c aps the y have led to  e normous ec on omi c 
ine f f iciencyand distortions. 
The w a y we ha ndl e the  cri ticism*a ndEnron ,sb oard k nows t his* is  by b eingv e ry  
o pe n and proa c t ive , try in g to  work t hrough solutions r a the r than pointi ng
fin g e rs  an d  c o nju ri n g u p conspiracies. I  and other so nthe Enront eam  h ave 
be en to C alifo r nia tomeet with  editoria lboar d s  an d business  and pol itical 
l e aders .  W e try  to  educa te  va rious  group s  on  what  cause dthe pr oblem  a nd what
needs to be done to so lve it . 
On  th e need fo r a l l c ompaniesto h ave an ene rgy  po licy:  Ev e n bef oret hi s r ecent  inc r ease, it , sbee n ou r experienc e t hat  many  co m panies  hav e exposed 
themse l ves to a lot m orep r ice  ri s k in  t heir energy us e t ha n they rea li ze. It,
san areath a t qui te oft en isnot asa c ti v ely ma nage d a s, for ex amp le ,  the 
b al an c e shee t. T he re isa loto f at t e ntion
 to_allow political_leaders to delay making_the tough_
decisions_necessary to_solve_the problem. Price_caps may camouflage_the 
problem temporarily, but_they don,t solve_it._And to the extent that the 
right decisions and action are not taken, the_problem_just gets_worse._
On_the public backlash against energy_companies and their boards: Every_time 
we,ve_had an energy problem, we get this same_reaction._There is always_a 
discussion of conspiracy or collusion or anticompetitive behavior_or excess 
profits or whatever. Each_time there are_investigations._
In_California, it seems the_political leaders are trying to blame_everybody 
but themselves. They need to_face up to the fact that the_rules are wrong and 
led to_a drastically dangerous situation. Now_we,ve got_to solve it. 
First of_all, we,ve got_to get_the prices right,_so consumers realize we,ve 
got to_use a lot_less and suppliers realize we,ve got_to_produce a lot_more._
We,ve_got to_streamline the process_to_site and_build_power plants. We,ve got 
to do_some_very significant things from the point of_view of reducing demand._
And_we need to open_the market for competition. Then_this problem will get 
solved very_quickly*a lot_more quickly_than trying to put on artificial price 
caps. Everywhere we,ve tried_price caps they have led to_enormous economic 
inefficiency and_distortions. 
The_way_we handle the_criticism*and_Enron,s board_knows this*is by being very 
open and_proactive, trying_to work through solutions rather than_pointing 
fingers and conjuring_up_conspiracies. I and others on the_Enron team have 
been to California_to meet with editorial boards_and_business_and political 
leaders. We try_to educate various groups on what_caused the problem_and what 
needs to be done to_solve_it. 
On the need for all_companies_to have an energy policy: Even_before_this_
recent increase, it,s been our_experience that many companies have exposed_
themselves to a lot more price risk in their_energy use than_they realize. It,
s an area_that_quite_often is not as actively managed as, for example, the_
balance sheet._There is a_lot of attention