Structuring just estimated the value of this contract at $5 MM.

 -----Original Message-----
From: 	Thome, Stephen  
Sent:	Friday, January 11, 2002 10:41 AM
To:	Sewell, Doug; Schneider, Chip; Aucoin, Evelyn; Helton, Susan
Cc:	Crandall, Sean; Scholtes, Diana; Baughman, Edward; Wax, Brandon
Subject:	PGE Transmission Contract

We have not paid PGE Transmission for November (invoice 12 on my schedule).  This contract has intrinsic value going forward.  Anytime Mid-C and COB spread exceeds $1 this contract is in the money.  

This is firm transmission.  Regardless of the issue pre-petition claims by utilities, if we do not pay these invoices PGE can terminate this contract and force us to go back to OASIS for transmission on a non-firm basis.  Significant value will be lost by the estate.  

Structuring is running an NPV of the basis differential.  We would like to do whatever necessary to convince the estate to pay this pre-petition claim. 

Steve