Attached is the starting point for our discussion tomorrow morning.  A few things to keep in the back of your mind as you look at this:  

(1)	We don't think we're going to end up with a settlement in this case.  So, we need to design our presentation to include the evidence necessary for the OPUC to rule in our favor.  The rate plan is a complete plan because we need to present a showing of benefits to get the transaction approved.

(2)	PGE and NWN already have in place mechanisms that will automatically pass through the benefits of any savings in (a) generation costs--even if its A&G that gets allocated to generation; and (b) gas costs.  If we do nothing with respect to these cost categories, we will face a fight to keep the synergies every year.  

(3)	The proposal has a number of bells & whistles.  We may want to think of the proposal as a menu of "rate benefits" we can offer.  Take one from column A and one from column B, etc. 

-----Original Message-----
From: Morgan [mailto:Mike@Tonkon.com]
Sent: Tuesday, October 23, 2001 10:30 AM
To: Paul_Kaufman@enron.com; PAMELA_LESH@pgn.com; PATRICK_HAGER@pgn.com
Subject: Benefits to Customers and Consolidated Savings


Here is my first cut at our discussion yesterday.  MY question are in parentheses.  Mike 

Mike Morgan
Phone:  802-2007
Fax:       972-3707
_________

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