Looks good.  How about a point about the need to connect new generation 
quickly.



	Sarah Novosel
	09/26/2000 09:55 PM
		 
		 To: skean@enron.com, Richard Shapiro/HOU/EES@EES, Sue Nord/NA/Enron@Enron, 
Margaret Carson/Corp/Enron@ENRON, Rob Bradley/Corp/Enron@ENRON, 
mpalmer@enron.com, Karen Denne/Corp/Enron@ENRON, Jeff 
Dasovich/NA/Enron@Enron, James D Steffes/NA/Enron@Enron
		 cc: 
		 Subject: Draft Letter to FERC by Consumer Groups

Below is my first rough draft of a letter that could be sent from consumers 
to FERC Chairman Hoecker.  Due to technical difficulties, I could not attach 
the letter in a separate document, so I copied the letter and have reprinted 
it below.

Having never been involved in this type of letter writing campaign, this was 
a bit of a stab in the dark for me, so I welcome everyone's comments.  I am 
also working on a letter that could be sent by senior management or CEOs of 
high tech firms, but I wanted to get your feedback on this format before I 
went forward on the high tech letter.

Let me know if you have any questions or comments.

Sarah






 September 26, 2000


The Honorable James Hoecker
Federal Energy Regulatory Commission
888 First Street, N.E.
Washington, D.C.

Re: Electric Power Industry Reform

Dear Chairman Hoecker:

We are consumers or represent consumers of electric power.  We write to urge 
you and your colleagues to take the initiative to address the intolerable 
shortages and extreme price volatility that have become all too common in the 
electric power industry.  It is imperative that the Federal Energy Regulatory 
Commission proceed expeditiously with the reforms needed to support a 
competitive and efficient power supply industry to ensure a reliable supply 
of power at the lowest possible cost to consumers.

There are many actions you and your colleagues should take to ensure that the 
power supply in the U.S. remains sufficient and is available at reasonable 
prices.  For example, you and your colleagues should remove roadblocks in the 
nation,s electricity gird.  Under the current system, FERC regulations allow 
many companies that own transmission systems to restrict access to their 
transmission lines by competing electricity suppliers.  The result of this 
policy is shortages, blackouts and skyrocketing prices.  Like the interstate 
highway system, FERC should allow electricity to move from one state to 
another just as freely as motorists do.  All electricity suppliers should 
have the same access to the transmission lines in order to transport power to 
where it is most needed.

FERC should also discourage electricity suppliers, reliance on spot and 
short-term electricity markets for power supply.  Instead, FERC should urge 
suppliers to purchase a portion of their power needs under long-term 
contracts.  Locking in electricity costs at fixed prices protects consumers 
from unexpected price swings that can be financially devastating.

We strongly urge you and your colleagues to seize the initiative on these 
reforms.  Consumers deserve a power supply industry that is both more 
reliable and economical. 

Very truly yours,
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