SOS NY Suppliers Offering Solutions in New York A Campaign to Affect Policy and Public Opinion March 1, 2001 Draft presentation

Suppliers Offering Solutions Potential Coalition Members Transcanada Utilicorp Dynegy AES Enron PECO APX Morgan Stanley NRDC Keyspan Mirant PPL Orion Power Constellation NRG Edison Mission Aquila

The Challenge Re-educate Public and Policy Makers on benefits of competition Distinguish New York from California and communicate a market-based message Minimize impact of CA Governor Davis’ price-cap message Refine and increase public affairs/grassroots effort among policy makers, the media, opinion makers and electricity consumers

Major Themes Increase energy supply Decrease demand Encourage risk management/hedging strategies by load serving entities and customers Promote customer choice Advocate benefits of competitive markets Price caps don’t work

Immediate Goals Ensure that electricity issues are perceived in New York as an argument for greater deregulation rather than further regulation To foster a policy environment in which state lawmakers and regulators will adopt regulatory schemes that support free and open markets

Immediate Goals (cont.) To work with key Executive, Legislative, and Regulatory officials in New York to discourage unwise, precipitous decisions in reaction to a perceived need to control prices To enhance suppliers’ image as efficient, new economy companies that want to participate in New York’s power markets if the markets are structured appropriately

Target Audiences Executive Branch Governor’s Office PSC DEC Legislature ISO Board Members City of New York Strategic Relationships (e.g., Wall St, Commercial Bldg Owners, Construction Unions) Media

Lobbying Educate Governor Pataki’s staff, legislature, PSC, ISO, and Mayor Giuliani’s staff Ensure that lawmakers and regulators understand the potential for New York to become the next California Identify officials who are supportive of our goals and work with current allies Neutralize potential foes

Lobbying (cont.) Identify appropriate “grasstops” individuals to call on key decision makers Develop materials and provide rationale for government officials to support our positions

Communications Strategy Inventory of current communications activities Message development Materials development Identify spokespersons and their availability

Earned Media Reporters who cover energy issues Trade publications Editorial boards Key columnists Opeds Speaking Engagements Events

Paid Media Evaluate polling data Consider print ads and radio

Key Elements of a Comprehensive Campaign Opinion Research and Polling Strategy and Development of Themes Coordinating Lobbying Efforts Managing Information Flow Overseeing Grasstops Efforts Cyber Communications Coalition Building Coalition Management

Potential PR Firms Fleishman Hillard Mercury Enterprises Robinson Lerer & Montgomery Devito/Verdi Others?

Implementation Agreement on overall effort Commit to effort with financial backing Consider public relations/grasstops proposals Retain public relations/grasstops firm Execute by April 1, 2001

Conclusion Implementing a focused campaign to stabilize the fallout from California, to promote competitive markets and improve public perceptions