----- Forwarded by Steven J Kean/NA/Enron on 01/13/2001 09:05 AM -----

	Roger Yang@EES
	01/12/2001 07:24 PM
		
		 To: Stephen Swain/PDX/ECT@ECT@ENRON
		 cc: James D Steffes/NA/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Richard 
Shapiro/NA/Enron@Enron, Mark Palmer/Corp/Enron@ENRON, Michael 
Tribolet/Corp/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Jeff 
Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Joe 
Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Linda 
Robertson/NA/Enron@ENRON, Alan Comnes/PDX/ECT@ECT@ENRON, Mary 
Hain/HOU/ECT@ECT@ENRON, Paul Kaufman/PDX/ECT@ECT@ENRON, Sandra 
McCubbin/NA/Enron@Enron, Scott Stoness/HOU/EES@EES, Robert 
Badeer/HOU/ECT@ECT@ENRON, Tim Belden/HOU/ECT@ECT@ENRON, Travis 
McCullough/HOU/ECT@ECT@ENRON, Andre 
Cangucu/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@ENRON, Shelia 
Benke/Corp/Enron@Enron, Vicki Sharp/HOU/EES@EES, Wanda Curry/HOU/EES@EES, Don 
Black/HOU/EES@EES, Gordon Savage/HOU/EES@EES, Donna Fulton/Corp/Enron@ENRON, 
William S Bradford/HOU/ECT@ECT@ENRON
		 Subject: Re: Financial Analysis of PG&E and Proposed Terms for Settlement

The underlying assumptions for the resources are that they return to some 
business as usual amortization of these assets (a 20 to 30 year amortization) 
assuming that none of the generating assets are uneconomic.  Further, it 
assumes non-revenue earning regulatory assets (other than the TRA 
undercollections) are amortized over the next 5 years.

Roger