I received a letter from Westinghouse in response to our threat to draw on 
the letter of credit.  A copy is being delivered to you today.  I have spoken 
to Patty Clark (Asst. General Counsel for Allegheny) about what we are doing 
and she didn,t seem overly concerned but asked to be kept in the loop.  I 
told her that Enron was very sensitive about the potential impact that our 
threats against Westinghouse might have on Allegheny,s contractual 
relationship with them.  Personally, I don,t think that we should draw on the 
letter of credit (even though I believe that we are entirely in the right on 
this one) because it might somehow hurt Allegheny.  I don,t, however, want to 
take the heat off of Westinghouse so I have not said anything.

We had a call with Westinghouse yesterday to discuss the facts surrounding 
our claim and have a follow up call scheduled for Wednesday (6/13) at 3:00 
pm.  You are welcome to participate if you would like.  To date, lawyers from 
either side have not participated in discussions as they have been primarily 
fact-finding in nature.  I am happy to give you an update as to what has 
happened and what I expect to occur on Wednesday at your convenience.

Take care,

Stuart