Just to add:  Evie represents (largely) the oil companies.  She represented 
that the suppliers that she represents are negotiating the terms of the 
agreement with PG&E. She finished by saying that she was fairly confident 
that those negotiations would result in the gas suppliers that she represents 
signing PG&E's agreement and supplying gas under those agreements. 

Best,
Jeff



	Susan J Mara
	02/06/2001 02:13 PM
		
		 To: Karen Denne/Corp/Enron@ENRON
		 cc: Eric Thode/Corp/Enron@Enron, Harry Kingerski/NA/Enron@Enron, James D 
Steffes/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron, Karen 
Denne/Corp/Enron@Enron, Meredith Philipp/Corp/Enron@Enron, Richard 
Shapiro/NA/Enron@Enron, Sandra McCubbin/NA/Enron@Enron, Steven J 
Kean/NA/Enron@Enron, Travis McCullough/HOU/ECT@ECT, Vance Meyer/NA/Enron@Enron
		 Subject: Re: PG&E Securitization Agreement Statement

Jeff and I heard in a conference call of many parties just now from the large 
oil co rep (Evie Elsesser) that:
 "There are several parties willing to sign PG&E's securitization agreement 
right now."



	Karen Denne
	02/06/2001 12:12 PM
		 
		 To: Steven J Kean/NA/Enron@Enron, James D Steffes/NA/Enron@Enron, Richard 
Shapiro/NA/Enron@Enron, Vance Meyer/NA/Enron@ENRON, Meredith 
Philipp/Corp/Enron@ENRON, Eric Thode/Corp/Enron@ENRON, Jeff 
Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Sandra 
McCubbin/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Travis 
McCullough/HOU/ECT@ECT
		 cc: Karen Denne/Corp/Enron@ENRON
		 Subject: PG&E Securitization Agreement Statement

Statement regarding PG&E's securitization agreement:

Enron does not plan to sign PG&E's securitization agreement at this time for 
several reasons.  PG&E has included in the agreement an obligation by 
suppliers to negotiate in good faith to provide additional supplies.  This 
would potentially expand our exposure to PG&E, and there is no way to 
determine that exposure at this time.  PG&E is also asking us to suspend 
certain provisions in our existing agreements that allow us to terminate or 
suspend service in the event of a bankruptcy or failure to pay debts.  This 
limits our flexibility to deal with our different exposures to PG&E.  We are 
continuing to perform on our existing contracts with PG&E.