FYI.  Please keep this internal and confidential.  Here's where the group I 
mentioned left off last Friday.  It will be useful for our discussion this 
afternoon.  You'll note from the comments that it's anything but a done 
deal.  I'll forward the SF press mentioned in the note.

Best,
Jeff 
----- Forwarded by Jeff Dasovich/NA/Enron on 12/18/2000 11:36 AM -----

	Evelyn Kahl Elsesser <eke@aelaw.com>
	12/17/2000 11:05 PM
		 
		 To: Keith McCrea <kmccrea@sablaw.com>, "Jeff Dasovich (E-mail)" 
<jdasovic@enron.com>, Ralph Cavanagh <RCavanagh@nrdc.org>, Bill Booth 
<wbooth@booth-law.com>, Ann Cohn <cohnap@sce.com>, Jan Smutny-Jones 
<smutny@iepa.com>, Delaney Hunter <dhunter@smithandkempton.com>, "Carolyn 
McIntyre (E-mail)" <cmcintyre@sempra.com>, "John Fielder (E-mail)" 
<fieldejr@sce.com>, "Tony Braun (E-mail)" <braun@cmua.org>, 
"jeflory@calpx.com" <jeflory@calpx.com>, Barbara Barkovich 
<brbarkovich@earthlink.net>, Dominic DiMare <dominic.dimare@calchamber.com>, 
Dan Richard <ddr0@pge.com>
		 cc: 
		 Subject: Revised CESG Outline

A revised CESG outline is attached, updated to reflect Friday's
discussion.  While we discussed much greater detail, I have continued to
try to keep the outline more general to avoid generating a treatise at
this point.  Particularly, we discussed much greater detail around the
rate stabilization plan than is reflected in the attached outline.

SCE has committed to providing some sort of percentage or tiered term
structure for forward contracting to complete that section of the
framework (section 2).  Obviously, PG&E's ideas in this area would also
be welcome.

In Section 4 (undercollections) I have thrown in the numbers provided to
the Chronicle for the Saturday morning article describing the extent to
which the utilities may have already committed to Governor Davis to
absorb undercollections.  (Which leads to the question for John and Dan,
again, whether we are wasting our time with this exercise given the
media coverage describing the state of the IOU deal.)

Delaney has committed to provide a call-in number for tomorrow's 3:30
conference call.  Thank you all again for your efforts.