Despite the fact the governor mentioned our name in his press release, we 
have a confidentiality provision in the agreement and therefore should not 
discuss terms.  If anything, I think you could say that we are continuing to 
work with DWR to help the situation in CA.  Also, the size of the contracts 
being discussed with DWR (and therefore magnitude of credit exposure) is much 
smaller than what other companies have press-released.  




Kathryn Corbally@ENRON
03/06/2001 07:34 AM
To: Tim Belden/HOU/ECT@ECT
cc: Christopher F Calger/PDX/ECT@ECT 
Subject: Re: Sales to California  

Thank you for the info.......is this confidential? Can we talk about the fact 
we are requiring weekly payments to minimise  the credit risk? Is this the 
only delivery we have made recently into California ? - we have many 
investors calling us to ask what our participation in the market has been 
recently [ - they are concerned  about a growing credit exposure] - to which 
we generally answer that as a merchant participant and not a generator we can 
selectively choose whether or not to participate depending on the terms 
especially credit which does not really answer their question  - mainly 'cos 
I did not know whether or not we were still selectively selling into 
California. 


Many thanks
Kathryn


   
	
	
	From:  Tim Belden @ ECT                           03/06/2001 09:06 AM
	

To: Kathryn Corbally/Corp/Enron@ENRON
cc: Christopher F Calger/PDX/ECT@ECT 

Subject: Sales to California

we executed a one-month contract for 200 MW that lasts through the end of 
march.  we have an option to extend that contract, under revised pricing, for 
5 years.  there are still many legal and credit issues associated with 
transacting with the calfornia department of water resources (governor davis' 
vehicle for buying power).  we have overcome the credit issues for the short 
term contract by requiring them to pay us on a weekly basis.  the state needs 
to get a few things done to improve cdwr's credit before we would exercise 
the long term option.  please contact me or chris calger if you have any 
further questions.