---------------------- Forwarded by Mary Hain/HOU/ECT on 01/08/2001 01:39 PM 
---------------------------


Lester Rawson
01/08/2001 10:47 AM
To: Greg Wolfe/HOU/ECT@ECT, Sean Crandall/PDX/ECT@ECT, Diana 
Scholtes/HOU/ECT@ECT, Tom Alonso/PDX/ECT@ECT, Mark Fischer/PDX/ECT@ECT, Matt 
Motley/PDX/ECT@ECT, Mike Swerzbin/HOU/ECT@ECT, Michael M 
Driscoll/PDX/ECT@ECT, Bill Williams III/PDX/ECT@ECT
cc: Mary Hain/HOU/ECT@ECT 
Subject: Losses using PacifiCorp Transmission

Brian McCellan from PacifiCorp Transmission called this morning to let me 
know that as of 1/1/2001 that Pac has begun charging for losses for 
transmission schedules using Non-Firm and Short Term transmission service. 
The losses will be .045 percent of the schedule. Pac offers the option of 
either settling losses financially or physically. 

The consensus is that Enron will settle losses financially using a index 
price, that Pac will supply, based on the Mid-Columbia, COB,4C and PV 
indexes. 

Currently Mary Hain has the official declaration form showing Enron is 
selecting financial settlements vs. physical. Until Mary returns and has the 
declaration executed I have notified Brain that Enron will settle losses 
financially.

Regards,

Les Rawson