Rod, please forward this note to Mark Lindsey ASAP (I can't find his name on
our email address book and I've had trouble with sending him things in the
past).  

Attached is a file that includes unusual accounting adjustments and/or
implementation adjustments we're proposing as a result of our new rate case
order.  These adjustments total $31.3m (IBIT), and $29.8m (Net Income for Q3
2001.  Forecasted results for Q3 we've been sending to you (including our 3rd
Current Estimate) include these adjustments.   Accordingly, not getting AA&Co
concurence on any of these issues will have a negative impact on PGG's Q3
results. 

For entries affecting PGH & PVC (see tab), we need to make sure Enron Corp is
supportive of our treatment.  This is because although AA&Co. Portland will be
reviewing our records and our reasons for the adjustments, they will likely
pass on the AA&Co. Houston any of these items they may question.  This is
because their primary focus is PGE earnings, not PVC or PGH since we don't
report these companies out any place publicly on a stand-alone basis.  We've
passed along the Merger MOU proposal to AA&Co. Portland already since it has
ties to our rate order (and they're thinking about it), but we're waiting to
hear back from you that the other three items on the list are support by you,
then we'll pass them on to AA&Co Portland for review.  Please respond back by
next Monday, Sept 24th to allow us appropriate time to get them reviewed by
AA&Co. 

All the items on the PGE tab have been explained to AA&Co. Portland, and we're
hoping to get their position on these adjustments by next Monday, Sept 24.  We
feel we have good justification for all the adjustments, but some are more of
a stretch than others (when projecting whether or not AA&Co will approve
them).

Please call if you have any questions.  thanks