Please see the v:mail message below from Rick Shapiro that was transcribed by 
Lora Sullivan.

----- Forwarded by Linda Robertson/NA/Enron on 01/10/2001 09:22 AM -----

	Lora Sullivan
	01/10/2001 09:01 AM
		 
		 To: Linda Robertson/NA/Enron@ENRON
		 cc: 
		 Subject: Voicemail message from Rick Shapiro 1:10 AM 1/10/00

Rick Shapiro   Voicemail 1:30 AM 1/10/01
    
Please pass this message on to Hartsoe and others as well.  Meeting went 
until 12:15 PM.  He,s not going into details now.   During the course of the 
day there were several meetings and a proposal.  There was sort of an 
agreement ) I wouldn,t say it was a conceptual agreement that was reached 
among the parties that is going to be released by Treasury today.  I,m not 
sure much will come of it.  It,s going to create some motion.  I talked to 
Sue Mara.  Sue will be coming over to the office and you,ll need someone else 
to go with her because of the fact there are two working groups instead of 
one.  I,m going to read to you the statement:

The Governor of CA and a bipartisan leadership of the state legislature met 
with major generators including qualifying facilities, marketers, utility 
regulators and federal officials to discuss the electricity situation in CA.  
Recognizing the importance of the issue as laid out in the Governor,s State 
of the State speech last evening, the partipants agreed for the need for 
cooperation to maintain stability and avoid bankruptcy for the utilities and 
assure the long term regulation of market conditions.  Crucial elements of 
the solution include:  

? The development of approaches to promote long-term purchases of electricity 
possibily by States and generators at an attractive fixed rate - an 
option-type of an idea perhaps using some type of existing state agency like 
DWR - Dept. of Water and Resources to basically create the credit and 
insulation for suppliers from the utilities.

? The willingness for generators, qualifying facilities and markets to 
provide on the short-term basis for current amounts owed by PGE and Edison in 
the context of the framework of a long-term solution

? The need to find satisfactory approaches with respect to the obligation 
accumulation of the utilitles for the purchase of power consistent with 
contractual obligations and which are in the public interest.

? Cooperation to better match supply and demand in the short and long-term.

? Review of the existing qualifying facilities payments to directors.

The parties ackknoweldge the problem must be addresed while taking into 
account the regional market.  Further working groups will be convened on 
Wednesday, and there will be two working groups to address to address 
technical details.  Principals will reconvene this weekend.  One working 
group will deal with long-term auction and QF issues.  The first and the last 
bullets and the second and the third bullets which have to do more with the 
arrearages, the debt and the obligations that have been accumulated for the 
purchase of the power is the second  working group.  

I think I,ve read it all.  The working groups (see first and last bullets) 
Sue is best equipped to handle.  If we need to send another person over with 
Sue to sit on the second working group that deals with the unrecovered and 
unpaid obligations of the utilites.  Sarah Novosel should do that.