FYI.  DWR declines to extend option (which is amazing because our deal is one 
of the few deals that would help CA - lower prices today).

Jim

----- Forwarded by James D Steffes/NA/Enron on 03/29/2001 07:04 AM -----

	Christopher F Calger@ECT
	03/28/2001 06:39 PM
		 
		 To: Tracy Ngo/PDX/ECT@ECT, Tim Belden/HOU/ECT@ECT, Louise 
Kitchen/HOU/ECT@ECT, John J Lavorato/Corp/Enron, Mark E Haedicke/HOU/ECT@ECT, 
James D Steffes/NA/Enron@Enron, William S Bradford/Enron@EnronXGate
		 cc: 
		 Subject: DWR Option Expires

FYI - we proposed several alternatives to DWR that would effectively extend 
our put swaption through the end of April for a cost to ENA of approximately 
$5MM.  None of those were acceptable to DWR.  The option will therefore 
expire at 5:00 PPT today.  Vikram Budraja, Advisor to Gov Davis, suggested 
that we are not dealing in good faith and suggested that he will speak with 
Ken Lay (we have heard this several dozen times).  In any event, I expect to 
talk with DWR tomorrow to propose  a short-term transaction.  They might 
accept it, reject it or prefer one of the term option proposals.