continue to 
receive the financial benefits of their contract prices.
? EES is continuing to work with its California customers to provide them 
with other energy-related products and services, including assistance in 
reducing the demand for power, particularly at peak times.

Enron is currently proposing solutions to help California work out of its 
crisis; Enron continues to sign up customers in the state; and Enron 
continues to actively manage its risks and capture opportunities in Western 
power markets.  Enron,s primary business is managing risk for our customers 
with solutions customized to meet their needs.  There has never been more 
demand for our products and services.

The Solution

The solution to California,s crisis is also straightforward.  In summary, the 
state must increase supply, reduce demand, reduce reliance on the spotmarket 
and shore up the financial stability of the state,s utilities.

Increasing Supply

California,s process for siting and permitting new generation is nothing 
short of Byzantine.  Enron has built plants elsewhere in the country in less 
than a year.  In California, it often takes 5 to 7 years.  California simply 
must streamline this process.  Ironically, while many of the regulations 
generators must overcome are aimed at improving environmental quality, the 
regulations are preventing new clean technology from coming online and 
displacing current plants, which emit 40 times as much NOx.  California can 
have abundant power and cleaner air by expediting the permitting of new 
facilities.

Reducing Demand

Customers in California today have no incentive to reduce or shift demand.  
They pay the same rate no matter