Louise,
 
I spoke with Michael Tribolet re: ring-fencing issue for PG&E.  I don't believe it has been a center stage issues within the PG&E bankruptcy proceeding and I am not sure it will become one. If pursued it would probably be solely for a nuisance factor against PG&E by the creditors.
 
Please note commentary below.  No real new information except that El Paso is eliminating risk with EME.
 
Sorry for the delay in getting back to you.
 
Bill
 

-----Original Message----- 
From: Harrison, Oliver 
Sent: Tue 7/24/2001 11:30 AM 
To: Murphy, Ted; Bradford, William S. 
Cc: Nelson, Roderick; Taponen, Minna; Bayley, Rob G.; Arnold, Nick; Lewis, Richard 
Subject: Edison Mission



FYI 


I had an interesting conversation with someone from El Paso who recently left employment at Edison Mission in the UK. El Paso want no exposure at all to EME (even directly with EME) as they are known to have a number of assets up for sale globally and are struggling for liquidity - largely to feed the Californian utility. It seems that, despite their apparent ringfencing from SCE, the chickens are coming home to roost. On top of this, EME are fighting a number of legal battles with uncertain outcomes

With specific reference to First Hydro, a number of parties have expressed an interest in purchasing the FFF assets if the First Hydro assets were thrown in too. We already suspected this but this adds some credence to it. Whilst First Hydro has a lot of value as a going concern, we should not be taking any exposure to the project entity without recourse to the parent and - the message seems - be careful there too. 

Anyway, interesting opinion from the market?.

Oliver