Enron has agreed that the key issue is to focus on solving the S-T buying 
needs.  Attached is a spreadsheet that outlines the $ magnitude of the next 
few months.

TALKING POINTS:

Lot's of questions about DWR becoming the  vehicle for S-T buying and there 
is a significant legal risk for it becoming the vehicle.  WE DO NEED 
SOMETHING TO BRIDGE BEFORE WE PUT IN L-T CONTRACTS.
Huge and growing shortfall ($3.2B through March 31, 2001) 
The SOONER YOU CAN PUT IN L-T CONTRACTS STOP THE BLEEDING.
Bankruptcy takes all authority out of the Legislature's hands.

ACTION ITEMS:

1. Energy Sales Participation Agreement During Bankruptcy

Michael Tribolet will be contacting John Klauberg to discuss how to organize 
a Participation Agreement to sell to UDCs in Bankruptcy while securing Super 
Priority.

2. Legislative Language for CDWR (?) Buying Short-Term

Sandi McCubbin / Jeff Dasovich will lead team to offer new language to meet 
S-T requirements of UDCs.  Key is to talk with State of California Treasurer 
to see if the $ can be found or provided to private firms.  ($3.5B by end of 
April).  Pat Boylston will develop "public benefit" language for options 
working with Mike Day.  He can be reached at 503-294-9116 or 
pgboylston@stoel.com.

3. Get Team to Sacramento

Get with Hertzberg to discuss the options (Bev Hansen).  Explain the 
magnitude of the problem.  Get Mike Day to help draft language.  

4. See if UDCs have any Thoughts

Steve Kean will communicate with UDCs to see if they have any solutions or 
thougths.  Probably of limited value.

5. Update List

Any new information on this should be communicated to the following people as 
soon as possible.  These people should update their respective business units.

ENA Legal - Christian Yoder / Travis McCullough
Credit - Michael Tribolet
EES - Vicki Sharp / Don Black
ENA - Tim Belden / Philip Allen
Govt Affairs - Steve Kean / Richard Shapiro