Thanks for the update.

 -----Original Message-----
From: 	Robert Nelson <jrnels@sunvalley.net>@ENRON [mailto:IMCEANOTES-Robert+20Nelson+20+3Cjrnels+40sunvalley+2Enet+3E+40ENRON@ENRON.com] 
Sent:	Monday, September 10, 2001 2:11 PM
To:	Sanders, Richard B.
Subject:	PX Call

We had the shortest call in history today.  We discussed Edison.  Edison
withdrew its opposition to our employment of professionals and will be
producing documents in response to our 2004 notice.  There's been some
speculation about whether parties will be filing an involuntary petition
against SCE.  Reliant wasn't on our call today and I couldn't help but
wonder whether they were busy with other things.  In that regard, Howard
Weg is establishing an SCE subcommittee and wants us to participate.
What's your position.  As to Edison, there's a reasonable likelihood now
that the legislature will approve a package that (1) has no funding to pay
us, (2) permits Edison to use funds to pay dividends on preferred stock and
(3) waives Edison's commandeering claims.  As to the last issue, Kaye
Scholer opines that Edison's waiver will have no impact on the PX's right
to pursue the commandeering suit.  This week there will be several meetings
aimed at finalizing a reorganization plan.  We'll have a report during our
next call which is scheduled Sept,. 17 at 1 LA time.  Weg is consulting
with FERC lawyers about presentation of his proposed settlement.  He plans
to proceed fairly soon both before FERC and in the bankruptcy court.  Bob
Nelson