From: jmunoz@mcnallytemple.com
To: kaplan@iepa.com, abb@eslawfirm.com, andybrwn@earthlink.net, cabaker@duke-energy.com, rescalante@riobravo-gm.com, rbw@mrwassoc.com, curtis_l_kebler@reliantenergy.com, dean.nistetter@dynegy.com, dkk@eslawfirm.com, gtbl@dynegy.com, smutny@iepa.com, jeff.dasovich@enron.com, joer@calpine.com, john.g.larrea@williams.com, john_h_stout@reliantenergy.com, jmball@ns.net, kgough@calpine.com, kent.palmerton@williams.com, lale@dynegy.com, mmoretti@mccabeandcompany.net, mwilson@pstrategies.com, rmcnally@mcnallytemple.com, nam.nguyen@powersrc.com, knorton@mcnallytemple.com, paula.hall-collins@williams.com, jackp@calpine.com, rwhyde@duke-energy.com, roger.pelote@williams.com, stephanie-newell@reliantenergy.com, smara@enron.com, tross@mcnallytemple.com, tcwillia@duke-energy.com, carol@iepa.com, trusso@mcnallytemple.com, rtemple@mcnallytemple.com, sadlersa@earthlink.net, mstultz@epsa.org, lchurch@epsa.org, tracy.fairchild@edelman.com, meganbeiser@edelman.com
Date: 2001-04-16 18:38:00+00:00
Subject: PR Update

Our e-mail server has been experiencing problems today, so to make sure you 
all get a copy of the PR update we went over on the public affairs call 
earlier today I'm sending it again. ?If you receive it twice, sorry!

Thanks,
Jean



April 16, 2001


PR UPDATE

To: ???IEP PR Committee
Fr: ????McNally Temple Associates, Inc.
Re: ???PR Update

Key Messages


See attached memo (below) 


Collateral Materials


California Journal Ad May . Conservation  
California Journal Ad June . Topic: ?Open for discussion, Due May 9th  
"Powerful Ideas" . At print. To be distributed to statewide media, capitol 
press corps, legislature and key California policy makers, Key Washington 
policy makers, congressional ?members  
Senate Investigation Hand-outs/Press kits: ?

???????????Previous investigations (Including FERC handout, analysis of 
Lynch/Kahn Report, ????????
??????????analysis of recent ISO report) 
??????????CPUC long-term contract history 
??????????Early Warnings 
??????????A primer on California?s Restructured Electric Power Industry 
??????????The Perfect Storm (What caused California?s Electricity Crisis)
??????????Powerful Solutions 
??????????Vintage Power Plant Series-Utilizing Outage Standard Information
??????????Who Powers California
??????????Regional supply/demand chart


Web-site . www.turnonthetruth.com, continue to update


Research


Update provided on call


Earned Media


Teleconference briefings with press . On Fridays, or as needed. ?Next 
scheduled for Tuesday, April 17 at 11:00 am. 1-800-374-2393, pass code: 
?Independent Energy Producers  
Statewide and national media outreach . Ongoing  
Editorial Board Meetings . Met with Sacramento Bee (April 11) and San Jose 
Mercury News (April 9). ?Will begin scheduling a round to preview "Powerful 
Ideas" with: Sacramento Bee, San Jose Mercury News, San Francisco Chronicle, 
San Diego Union Tribune, Los Angeles Times, Alameda News Group  
"Powerful Solutions" . to be released week of April 23 with press briefing in 
Sacramento and Los Angeles. ?Objective will be to promote IEP?s solutions, 
while also incorporating Senate investigation key message points.  
Response to Senate Investigation . available to respond to media in person at 
during hearings  
Electronic Media Summary . 

???Governor Davis Speech Reaction: KXTV-10 Sacramento; KOVR-13 Sacramento; 
KFBK-Am 1530 ???
??Sacramento; KMAX-31 Sacramento; KTVU-2 San Francisco; KPIX-5 Los Angeles; 
KFMB-8 San 
??Diego; KTTV-11; KNBC-4 Los Angeles ?
??PG&E Bankruptcy Reaction: KCRA-3 Sacramento; KXTV-10 Sacramento; KFBK-AM; 
KCBS-AM; ?
??KGO-7 TV San Francisco; KPFA AM/FM Berkeley



KEY MESSAGES

Generators have been operating under the rules California established for its 
electricity market. ?We did not create the market, nor did we write the 
rules. ?In fact, the "big five" generators did not come to California until
AB 1890 invited them into the state, where they?ve since invested billions of 
dollars buying, building and modernizing power plants.

. Energy companies, independent financial analysts and IEP warned that the 
PUC was failing to implement AB 1890 properly, and that the market was being 
set up to fail, especially the residential market.
. Last summer, generators were urging and offering long-term contacts. They 
were flatly rejected. ?Had they been adopted, the crisis could have been 
prevented or its severity dramatically lessened.
. This crisis was caused by three things . the failure to enter into 
long-term contracts, forcing an over-reliance on the spot market; a supply 
shortage, and no retail market. ?The market can be fixed. ?It should not be 
abandoned.

We?re an important part of the solution.

. We?ve made extraordinary efforts to keep our plants running during this 
crisis to supply California homes and businesses with electricity.
. We?ve offered solutions and been cooperative partners in legislative and 
regulatory efforts to end the crisis. 
. Rather than using tax money, we?re investing billions of private-sector 
dollars to buy, modernize and build new power plants in California . to 
generate electricity for California.
. Our new and upgraded power plants will help improve California?s air 
quality and generate power more efficiently.

We?re hopeful that these hearing focus on facts, fairness and accountability.

. "Witch hunts," "scape-goating" and sensational headlines won?t solve the 
problem or end the crisis.