We will review this in the morning.  In the meantime, it would be extremely
helpful to know what the practical effect of your calculation would be.  In
other words, using this method, what is the valuation of each of the
packages as of today?  Please e-mail your calculation to each of us on the
PG&E team.  Thanks, Peter

-----Original Message-----
From: Gerald.Nemec@enron.com [mailto:Gerald.Nemec@enron.com]
Sent: Thursday, April 12, 2001 6:44 PM
To: Steve.Van.Hooser@enron.com; Peter.meier@neg.pge.com
Cc: Barry.Tycholiz@enron.com
Subject: Spread Value Calc.


Attached is a draft of the mark to market language per your discussion with
Barry.  Please review and contact Barry directly to discuss.

Barry's numbers
(713) 667-9956 Home
(713) 302-6442 Cell

(See attached file: PGESpreadvaluationdefinition.doc)


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.