Ray... seems like its been a while since we met in San Fransisco, ....  and of course so much has happened since then. 

I have been talking with our in house legal and with Canada and I know Eric and yourself have also been talking. I believe that the door has been pushed open a little and if everyone tries to get these agreements cleaned up  and executed that PG&E and Enron ( Canada & US ) can start to transact.

With that being said, there are two areas which I would like to refresh from our discussions..

1.  Did you give any further thought to the utilization of Daily gas sales as a collateral.. I truly believe that this vehicle is a very efficient,easy way for PG&E to enhance the credit with ENA and once we have a 30 day bucket... we can get you trading access to EOL.  Lot's of details to work out, but I would like to keep this discussion at the forefront. I can send the details of how this proposal would work if required. ( let me know ) 

2.  As discussed, ENA holds some 5 year El Paso capacity. I am looking to assign this capacity and possibly and would like to investigate your supply requirements and possible alternatives such that you can consider our capacity.  

I trust all is well and look forward to talking to you soon. 

Barry Tycholiz