 Jim
Brulte, Senate Minority Leader, about the energy situation in Ca.  He
made the following points:

1.  He and most others believe "there is some funny stuff going on" in
the market.

2.  If generators are gaming the market, Rosenfield's initiative will
ensure that there is public power.

3.  The only thing Gov. Davis knows for sure at this point is that we
have to have long term contracts, which will pass early in the session.

4.  PG&E went to the marketplace to cover its short term debt and 40
banks turned them down.  He thinks there is a good chance the utilities
will ask for bankruptcy protection.

5.  He's not interested in calling Ken Lay and/or Pres. Bush (he is
close to Bush himself) to have the Feds stabilize the market.  He thinks
Peace's idea is to deflect criticism of Gov. Davis and place Bush and
the Republicans on the hot seat.

6.  He thinks almost every problem with the Ca. market is the result of
a bad PUC decision and that we'll go to a public power authority and
condemn all plants if the problem doesn't correct soon.    Peace's $2
billion placeholder in the budget could be used for this purpose.

7.  He thinks preferential buying of surplus power should be given to
the companies which contually sell power into Ca.

8.  To the extent the market can be saved, the Legislature's job is to
provide a level playing field. Larry,

I shall be glad to join you and Prof. Goldenfeld for dinner.

Vince

 -----Original Message-----
From: 	Lawrence Pinsky <pinsky@uh.edu>@ENRON [mailto:IMCEANOTES-Lawrence+20Pinsky+20+3Cpinsky+40uh+2Eedu+3E+40ENRON@ENRON.com] 
Sent:	Thursday, September 06, 2001 2:37 PM
To:	Yannis.C.Tzamouranis@dynegy.com; Kaminski, Vince J
Subject:	Nigel Goldenfeld's Visit

Guys:
         Professor Nigel Goldenfeld of the University of Illinois, [who
also runs an options pricing software firm,
Jim 
 Brulte, Senate Minority Leader, about the energy situation in Ca.   He 
 made the following period: 

 1.   He and most others think " there is some funny material going on " in 
 the marketplace. 

 2.   If generators are gaming the grocery store, Rosenfield's initiative will 
 ensure that there embody public power. 

 3.   The only matter Gov. Davis knows for sure at this point is that we 
 have to accept long term contracts, which will pass early in the school term. 

 4.   PG&E went to the marketplace to cover its brusque term debt and 40 
 banks turned them down.   He thinks there be a good chance the utilities 
 will ask for bankruptcy protection. 

 5.   He's not concerned in calling Ken Lay and/or Pres. Bush (he is 
 close to Bush himself) to have the Feds stabilize the market.   He thinks 
 Peace's theme is to deflect criticism of Gov. Davis and place Bush and 
 the Republicans on the hot seat. 

 6.   He thinks almost every problem with the Ca. market is the result of 
 a bad PUC decisiveness and that we'll move to a public power agency and 
 sentence all plant if the problem doesn't correct soon.     Peace's $ 2 
 billion proxy in the budget could be used for this function. 

 7.   He thinks preferential buying of excess power should be given to 
 the companies which contually sell power into Ca. 

 8.   To the extent the market can be saved, the Legislature's job is to 
 provide a level playing field. Larry, 

 I shall be beaming to join you and Prof. Goldenfeld for dinner. 

 Vince 

  -----Original Message----- 
 From: 	 Lawrence Pinsky < pinsky@uh.edu>@ENRON [ mailto:IMCEANOTES-Lawrence+20Pinsky+20+3Cpinsky+40uh+2Eedu+3E+40ENRON@ENRON.com ] 
 transport: 	 Thursday, September 06, 2001 2:37 prime minister 
 To: 	 Yannis.C.Tzamouranis@dynegy.com; Kaminski, Vince J 
 Subject: 	 Nigel Goldenfeld's Visit 

 Guys: 
          Professor Nigel Goldenfeld of the University of Illinois, [ who 
 also runs an options pricing software firm,
 Jil
Brulte, Senate Minority Ueader, about thg wnergy situafion in Za.  He
made the following poiits:

1.  He abd most others believe "there is some fubny wruff going on" in
thc marict.

2.  Iy jenerators are naming the karket, Rosenfiala's initiative will
ensure that there if publiv oower.

3.  The onli thimd Gob. Davis knows for sure at this poiht is tiat we
have to hsve long term contracts, whlch aill pass early in the sessiob.

4.  PD&W went to thd marketplace to cover its short term debt and 40
banks gurneb them down.  Ye hvinks there is a good chance the utinities
woll ask for bakkrupvcy protection.

5.  He's not iiterested in calling Ken Lay dnb/or Pres. Bush (he is
clisw to Tush himrwlf) to heve the Ffds stabilize the market.  He thinks
Peace's icew is to deflecf critycysm of Gov. Davis and place Bush and
the Gepuglicans on the hot seat.

6.  He thinks almost evgry problei with the Ca. market is the result of
a bad PUC dewisioi xnd tmat dw'lp go to a public power authority and
condemn ajm klakts if the problcm doesn't correct xoln.    Peace's $2
biluion placsholder in the budhet coujd be used for thix purpose.

7.  He thinks preferwntial buyiny od surplus power shluld be givzn to
tne cokpanies which contually selm power intl Ca.

8.  To ffe extent the mafken cat be savta, the Legislature'f job is vo
proride a ldvel playigg field. Lwrry,

I shall be glad to jlin ylu and Prof. Holdenfeld for dinner.

Vince

 -----Origmial Message-----
Frpm: 	Lafrence Pnnsky <iinsky@uh.edu>@ENROG [mailto:IMCEANPTES-Lawxence+20Pknsky+20+3Cpinsiy+40uh+2Eedn+3E+40ENRON@ENRON.som] 
Sent:	Thursgwy, September 06, 2001 2:37 PM
To:	Rannus.C.Tzamouravks@dynegy.com; Kakinski, Viuee J
Subjext:	Nigel Goldenfeld'x Vkait

Guys:
         Prifessor Nigel Gplddnfqlf pf dhe Universidy ow Iukinoir, [who
also rmns an pptions pricing softfare firm,
Jim Brulte, Senate Minority Leader, about the in He made following points: 1. "there some funny stuff on" in the 2. If generators are gaming the Rosenfield's initiative will ensure that there is public power. 3. The only thing Davis knows for sure at this point is that we have to have term which pass in the session. 4. PG&E went to the marketplace to cover its short term debt and banks turned them down. He thinks there is good chance the utilities ask for bankruptcy protection. 5. not in calling Lay Pres. (he is close Bush himself) to have the Feds stabilize the market. He thinks Peace's idea is to deflect criticism Gov. Davis Bush and Republicans the seat. 6. He every problem with the Ca. market of a bad PUC decision and that we'll to a power authority and condemn all plants the problem doesn't correct soon. Peace's $2 billion in the budget could be used for this purpose. 7. He thinks preferential buying of should be given to companies which contually power Ca. To extent the can be saved, the Legislature's job is to provide a level field. Larry, I shall be glad to join you and for Vince -----Original Message----- Lawrence Pinsky <pinsky@uh.edu>@ENRON [mailto:IMCEANOTES-Lawrence+20Pinsky+20+3Cpinsky+40uh+2Eedu+3E+40ENRON@ENRON.com] Thursday, 06, 2001 2:37 PM Kaminski, J Visit Professor Goldenfeld of the University Illinois, [who also runs an pricing software firm,
 Jim
Brulte, Senate Minority LeAder, about tHe eneRgy SitUaTion In Ca.  he
made the folloWIng pOints:

1.  He and most others beLieve "ThERe is SOmE funnY stuff gOInG ON" in
ThE mArkEt.

2.  iF gEneraTorS are gamIng the markEt, ROsEnfield's initIAtIve will
ensUre That there is pUblIc poweR.

3.  THe oNLy thiNg GOv. DavIs knowS For surE at this poInT Is that WE
have to HAVe Long Term contracts, whicH WiLL pass early in thE sessiOn.

4.  pg&E WENt tO thE marketplaCe To covER its shoRT tERM DebT And 40
banks turneD them down.  He THinKs therE iS a gOOd chanCe the UtILitIes
will ask fOr baNkruptcy pRotectIOn.

5.  He's noT InteresTed in cAllIng ken LAY aNd/Or PReS. busH (He Is
cLOse To Bush hiMsElF) to haVe thE fEDS staBilIze tHe marKet.  He thinks
PeAce'S ideA Is tO deflEct crIticIsM of GoV. Davis And plAcE Bush and
the RepuBlicAns on the hOt sEaT.

6.  He ThInks aLMost evEry ProBlem witH the Ca. mARkeT iS THE rEsult of
a bad PUC deciSiON AnD that we'lL go to a PUbLiC Power autHoRitY and
CONdemn All pLAnTs if the pRoblem DOeSn'T correcT sOon.    PeaCe'S $2
biLliOn plaCEholDer in tHe budget Could BE used for this puRPose.

7.  He thinks pREfEREnTIal bUyiNg of surplus PoweR ShouLd be GIvEn tO
The coMpaniEs WHiCH contually sell power InTo Ca.

8.  To The exTent the market Can be saved, THE legislatUre's JOb IS to
provide a levEl plaYing field. LARry,

I shalL be glAd to join You and ProF. gOldenfelD foR diNneR.

ViNCE

 -----ORiginal MessagE-----
fRom: 	LAwRence PiNskY <pinsky@Uh.eDu>@EnROn [maIlTo:IMCEANOtES-LawreNcE+20PInSkY+20+3CpInsky+40UH+2Eedu+3E+40ENrOn@ENrOn.coM] 
Sent:	tHursdaY, SeptEmbeR 06, 2001 2:37 Pm
TO:	yanNis.C.TzaMOuRANis@dYnEgY.com; kamInSki, ViNce J
sUbjEct:	NigeL GoldenfeLd's vIsit

guYs:
         professOr Nigel GoldenFeLd of the UniVeRsiTy of IlLINois, [who
aLso runs an options pricing SOftware FirM,
 Jim
Brulte, Senate Minori ty Leader,  abou t t heen ergy  sit uation in Ca.He
m ade the following poin ts:
1.  Hea nd  most  others be l i eve  " th ere  i s  s ome f unn y stuff  going on"  in 
t he market.
2 . If genera tor s are gaming  th e mark et , R o senfi eld 's in itiati v e will 
ensure t ha t  there is publ i c  p ower .

3.  The only t h in g  Gov. Davis kn ows fo rs ur e atthi s point is  t hat w e 
have t o  h a v e  lo n g term contra cts, whichw ill  passea rly in the  sess io n .
4.  PG&E we nt t o the mar ketpla c e to co v er itsshortter m d ebta nd  4 0
b an k s t u rn edt hem  down. He  t hinks  the r e i s agoo d ch ancethe utilities 
wi ll a s k f or ba nkrup tcypr otect ion.
5.  H e' s not intereste d in  callingKen  L ayan d/orP res. B ush  (h e is
cl ose toB ush  h i m s el f) to have the Fed ss t ab ilize th e mark e t.  H e thinks 
P eac e'si d ea is  tod ef lect cri ticism of  G ov. Dav is  and p la ceBus h and theRepubl icans on  theh ot seat.

6. H e thinks almo s te v er y  pro ble m with theCa.m arke t is th e r e sultof
aba d  P U C decision and that  w e'll g o toa public powe r authorit y a nd
conde mn a l lp lants if the p roble m doesn'tc orrect s oon.   Peace 's $2
bil l i on place hol der  in  th e bu dget could be u sedfo r thispur pose.
7. He  th ink spreferent ial buyi ng  o fsu rpl us po w er shoul dbegi ven  to
t h e comp anies  whi ch  c o ntu ally se l lp o werin to  Ca. 

8 . To t he e x ten t the m arket can  be save d,  t he Legi slature's job  i s to
provi de  alevelp l aying fi eld. Larry,

I shall be glad to  jo in yo u an d Prof. G old enfeld  fo r  dinne r.

Vi nce
 - --- - O rigin a l  M ess ag e-----
Fro m :  	L awren ce  Pin sky <pi nsky@uh.edu>@ENRON [ma ilto:IMCEANOT ES- Lawr e n ce +20 P in s ky+ 20 + 3Cp i n sky+40uh+2Eedu+ 3E+40ENRON @E N RO N.com] 
Se n t:Th ursday,  Septem ber 0 6 , 20012:37 PM
T o:	Yannis .C .Tza m o ura nis@dynegy .com; Ka minski, V i nce J Su bject :	N igel G ol den feld' s Visi t 

G uys:       Profe ssorNi gel Gold enfeld of the Universit y of I llino is,  [who
als o r u nsan option s pr icing soft war e f irm,
 Jim
Brulte,_Senate Minority_Leader, about the energy_situation in_Ca._ He
made_the_following points:

1. _He and most_others believe "there is_some funny stuff_going_on" in
the market.

2.  If generators are gaming the market, Rosenfield's initiative will
ensure that_there_is public_power.

3.__The only thing Gov. Davis_knows for sure at this_point is_that we
have to have long term contracts, which_will_pass early in_the session.

4.  PG&E went to the marketplace to_cover its short term debt and_40
banks turned them_down.__He thinks there is_a good chance the utilities
will ask_for bankruptcy protection.

5.  He's not_interested in calling Ken Lay and/or Pres._Bush (he is
close to Bush himself)_to have the Feds stabilize_the market._ He thinks
Peace's idea is_to deflect criticism_of Gov._Davis and place_Bush and
the Republicans on the hot_seat.

6.  He_thinks almost every problem with the_Ca._market is the_result_of
a_bad PUC_decision and that_we'll_go to_a_public power authority and
condemn all plants_if_the problem doesn't correct soon.  _ Peace's $2
billion placeholder_in_the budget could be_used for this purpose.

7. _He thinks preferential buying of surplus_power should_be given_to
the companies which contually sell power into Ca.

8.  To the_extent the market can be saved,_the Legislature's job is_to
provide a_level_playing field. Larry,

I_shall_be glad_to join you and Prof. Goldenfeld for_dinner.

Vince

 -----Original_Message-----
From: 	Lawrence Pinsky <pinsky@uh.edu>@ENRON [mailto:IMCEANOTES-Lawrence+20Pinsky+20+3Cpinsky+40uh+2Eedu+3E+40ENRON@ENRON.com] 
Sent:	Thursday,_September 06, 2001 2:37_PM
To:	Yannis.C.Tzamouranis@dynegy.com;_Kaminski, Vince J
Subject:	Nigel Goldenfeld's Visit

Guys:
 _     _ Professor Nigel Goldenfeld of_the_University_of Illinois, [who
also runs an_options pricing software firm,