----- Forwarded by Elizabeth Sager/HOU/ECT on 12/27/2000 09:54 AM -----

	"Meier, Peter" <peter.meier@neg.pge.com>
	12/27/2000 09:32 AM
		 
		 To: "'Steiner, Nolan'" <Nolan.Steiner@avistacorp.com>, "Meier, Peter" 
<peter.meier@neg.pge.com>, "'shari.stack@enron.com'" <shari.stack@enron.com>, 
"'travis.mccullough@enron.com'" <travis.mccullough@enron.com>, 
"'william.s.bradford@enron.com'" <william.s.bradford@enron.com>, 
"'elizabeth.sager@enron.com'" <elizabeth.sager@enron.com>
		 cc: "Vallieres, Benoit" <benoit.vallieres@neg.pge.com>, "Sarti, Daniel" 
<daniel.sarti@neg.pge.com>, "Hein, Jennifer" <jennifer.hein@neg.pge.com>, 
"Blair Strong (E-mail)" <rbstrong@paine-hamblen.com>, "Vermillion, Dennis" 
<DVermillion@avistaenergy.com>
		 Subject: RE: ASSIGNMENT AGREEMENT



We are fine with Nolan's changes.

Please note one additional change: Exhibit B, Item 1, the "Confirmation
Number" should be corrected to read 403862.

To complete this transaction, the following needs to happen:

1.Enron needs to sign off on our's and Avista's changes and add the correct
references in the second to last "WHEREAS".

2.Enron and PGET (Dan Sarti) need to finalize the Enron payment amount under
Section 7.

3.PGET (Dan Sarti) needs to provide our wiring instructions for Section 7.

4.Avista needs to provide its wiring instructions for Section 8.

I will be checking voice mails and, later this afternoon, will check
e-mails, should you have any questions.

Peter Meier
-----Original Message-----
From: Steiner, Nolan [mailto:Nolan.Steiner@avistacorp.com]
Sent: Friday, December 22, 2000 3:23 PM
To: 'Meier, Peter'; 'shari.stack@enron.com';
'william.s.bradford@enron.com'; 'elizabeth.sager@enron.com'
Cc: Vallieres, Benoit; Sarti, Daniel; Hein, Jennifer; Blair Strong
(E-mail); Vermillion, Dennis
Subject: RE: ASSIGNMENT AGREEMENT


We have received a copy of PG&E's comments.  For the most part, we accept
the language.  Only two small modifications:

Change #1: Page 2....second full paragraph.  Replace the word "refund" with
"return."

Change #2: Page 6...last paragraph.  After PGET's wording (which is okay
with us), insert the following: "The return of AVISTA Collateral by PGET to
AVISTA shall be deemed to be a condition precedent to the consent of AVISTA
herein."


Other than that....we're okay with all other language.  I'd be interested in
seeing Enron's comments to PGET's version, as well as this revised version
by Avista.



Nolan Steiner
Ph: 509-495-8199


-----Original Message-----
From: Meier, Peter [mailto:peter.meier@neg.pge.com]
Sent: Friday, December 22, 2000 11:51 AM
To: 'nsteiner@avistacorp.com'; 'shari.stack@enron.com';
'william.s.bradford@enron.com'; 'elizabeth.sager@enron.com'
Cc: Vallieres, Benoit; Sarti, Daniel; Hein, Jennifer
Subject: ASSIGNMENT AGREEMENT


 <<Avista Assignment and Settlement Agreement.doc>>

Attached are my preliminary comments on legal matters.  While I have
attempted to reflect the business deal as I know it, I have not had an
opportunity to consult fully with my client, so I reserve our rights to make
further changes.

Peter


PG&E National Energy Group and any other
company referenced herein that uses the PG&E name or
logo are not the same company as Pacific Gas and
Electric Company, the regulated California utility.  Neither
PG&E National Energy Group nor these other
referenced companies are regulated by the California Public
Utilities Commission.  Customers of Pacific Gas and Electric Company
do not have to buy products from these companies in order
to continue to receive quality regulated services from the utility.