We are in the process of closing with US Bank on our financing for the
construction of the first phase of this project for $13 million.  We are
working with the Enron Corp. - Corporate Financing group to obtain a corporate
guarantee for the financing.  This project is currently in PGH2 and is part of
what is being sold with PGE.  The financing guarantee will contemplate this
sale and will allow for the assignment of the guarantee to the new buyer as
long as they meet an agreed upon financial standards (ie. BBB+).  Since we are
under ETS you or Stan might get questions on the project and I wanted to
provide you an overview of the project.

Mahendra Shah of our treasury group has had a conversation with Greg Caudell
and Jim Newgard (both report to Tm Despain) at Enron Corp. Corporate Finance
about the Enron Guaranty for the US Bank construction facility (up to $13
million). He has forwarded to them, the US bank's draft of the Enron guaranty.
 They indicated that the guaranty would probably be redrafted by Clement
Abrams using the standard Enron format.  
 
If you have any questions on the District Cooling Project or need additional
information we can set up a conference call and go over the various aspects of
the project.  We also have the financial model available that we can forward
to you that was reviewed and was the basis of Enron's approval.