----- Forwarded by Jeff Dasovich/NA/Enron on 03/06/2001 12:42 PM -----

	Alan Comnes@ECT
	03/06/2001 12:00 PM
		 
		 To: Tim Belden/HOU/ECT@ECT, Robert Badeer/HOU/ECT@ECT, Chris H 
Foster/HOU/ECT@ECT
		 cc: Jeff Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Mary 
Hain/HOU/ECT@ECT, Steve C Hall/PDX/ECT@ECT
		 Subject: FW: EIX, PCG: Governor Announces Forward Contracts; CPUC to Discuss 
Revenue Allocation

FYI.  Davis is including the CalPX BFM contracts that he seized a while back 
and is valueing them at some undisclosed amount.

GAC
---------------------- Forwarded by Alan Comnes/PDX/ECT on 03/06/2001 09:47 
AM ---------------------------
From: Chip Schneider/ENRON@enronXgate on 03/06/2001 08:00 AM CST
To: William S Bradford/ENRON@enronXgate, Michael Tribolet/ENRON@enronXgate, 
James D Steffes/NA/Enron@Enron, Alan Comnes/PDX/ECT@ECT, John 
Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Christopher F 
Calger/PDX/ECT@ECT, W David Duran/HOU/ECT@ECT, Greg Blair/Corp/Enron@Enron, 
George Schaefer/NA/Enron@Enron, Terry W Donovan/HOU/ECT@ECT
cc:  

Subject: FW: EIX, PCG: Governor Announces Forward Contracts; CPUC to Discuss 
Revenue Allocation



 -----Original Message-----
From:  Paul Patterson <Paul_Patterson@xmr3.com>@ENRON 
[mailto:IMCEANOTES-Paul+20Patterson+20+3CPaul+5FPatterson+40xmr3+2Ecom+3E+40EN
RON@ENRON.com] 
Sent: Tuesday, March 06, 2001 7:13 AM
To: Schneider, Chip
Subject: EIX, PCG: Governor Announces Forward Contracts; CPUC to Discuss 
Revenue Allocation

Credit Suisse First Boston
Paul Patterson
Good morning,
Recent developments in California's power crisis:

-Yesterday, Governor Davis announced that the DWR has signed 40 contracts for 
8,886 MW per year, over the next 10 years and at an average price of $69 per 
mWh. The DWR also has agreements in &principle8 to cover 65-70% of its net 
short power position this summer.
-We remain cautious on the power purchase agreements, given past results of 
the state,s power auctions. At least two generators have indicated that, 
while they have signed MOUs with the DWR, the agreements are not definitive 
and issues still need to be resolved.
-Also yesterday, District Court Judge Lew scheduled a trial date of July 31 
for Edison,s lawsuit against the CPUC.
-On Thursday, the CPUC will address several utility issues.  Of particular 
importance is the allocation of customer revenues to the DWR. The method of 
allocation is expected to determine whether the DWR or the utilities are at 
greater risk for undercollection.
-We believe many uncertainties still remain. It is unclear when the state,s 
conceptual agreements with the utilities and the generators will be finalized 
in addition to how the legislature will receive the agreements.
-Consequently, we believe that investors should avoid EIX ($15.21, Hold) and 
PCG ($14.75, Hold), unless they have a high tolerance for risk and volatility.

Please call us with any questions you may have.
Regards,
Paul Patterson, 212-325-5876
Neil Stein, 212-325-4217
Wen-Wen Chen, 212-538-0223
Emily Lao Chua, 212-325-1982

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