We should cast a little broader net on this internally--Yoder, Calger, 
Belden, Foster, Sanders, etc.--but seems that, given the Governor's actions 
as of late, the likelihood of nonpayment might even be a bit higher than 25%.

Best,
Jeff



	Harry Kingerski
	02/25/2001 08:54 PM
		 
		 To: James D Steffes/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron
		 cc: 
		 Subject: California ISO Credit

ok swammies -

I told Neil I'd gather some input -  my assessment is 25% probability that 
payment is not received within one year; probability is nil that it won't be 
received at all.  Your thoughts?
----- Forwarded by Harry Kingerski/NA/Enron on 02/25/2001 08:52 PM -----

	Neil Bresnan@EES
	02/23/2001 05:45 PM
		 
		 To: Harry Kingerski/NA/Enron@Enron, Michael Tribolet/ENRON@enronXgate
		 cc: Don Black/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, Jubran 
Whalan/HOU/EES@EES
		 Subject: California ISO Credit

Michael,

With the dissolution of the PX we are exploring various markets in an attempt 
to shape our load and minimise our credit exposure to counterparts such as 
the ISO.  We are continuing to work with EPMI to manage the risk associated 
with selling any volume into the Cal ISO. Currently we are purchasing power 
on a daily basis from the market to meet the highest common on and off peak 
hour.  This strategy leaves us long for all the other hours but reduces our 
exposure to ISO penalties for under scheduling . Our most promising options 
are to sell the excess shoulder power into the PX imbalance market or OTC 
hour ahead. We are concerned about any receivable from the ISO and would like 
to know what you think the probability is of non-payment. If we do receive 
payment over what time period can we expect to receive it.

NFB