----- Forwarded by Richard B Sanders/HOU/ECT on 04/19/2001 04:25 PM -----

	"CARL EKLUND" <CEKLUND@LLGM.COM>
	04/19/2001 03:14 PM
		 
		 To: Richard.B.Sanders@enron.com
		 cc: 
		 Subject: Re: Close out of contracts


Richard,

Has the call been scheduled?  If so, please advise of dial in information.  
Thank you.

>>> <Richard.B.Sanders@enron.com> 04/19/01 10:54AM >>>

I have asked my asst, Twanda Sweet, to set up a conf. call on this for
Friday. Jim is right--we need to be prepared for anything. Bill- I heard
today that PG&E has sent us a letter or otherwise communicated to us that
they are looking for a letter from us on valuation and are going to
challenge our setoffs. Any news?



                    "JAMES
                    HUEMOELLER"          To:     "Elizabeth Sager" 
<elizabeth.sager@enron.com>,
                    <JLHUEMOE@LLG        richard.b.sanders@enron.com, 
travis.mccullough@enron.com
                    M.COM>               cc:     "CARL A. EKLUND" 
<CEKLUND@LLGM.COM>, "JOHN KLAUBERG"
                                         
<JKLAUBER.NYC2.HEADQUARTERS#032#NEW#032#YORK@LLGM.COM>
                    04/17/2001           Subject:     Close out of contracts
                    03:00 PM






I don't want to make a pest of myself, but I'm curious as to how the
process of closing out the terminated contracts is coming.  In particular
has Enron completed the process of obtaining quotes so that the amount of
the Termination Payments is set.  I'm concerned that PG&E would be more
likely to hit the LC's once the amounts have been set.  We'll be ready to
file something if they try that, but I'd like a heads up so that we know
the possibility is out there.


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