Attached is a draft letter setting forth Enron's damages in connection with 
the termination of certain commodity forward and swap positions with PG&E.  
In lieu of sending out multiple letters and then aggregating the exposures  
for set off purposes, I thought it would be more understandable if we put all 
the matters in one letter.  For each product line,  I thought we could attach 
all the relevant information (I'm not sure if this is making it too easy for 
the court but it seems like the right thing to do). Each commodity line then 
would assemble the following and attach as an Appendix to the letter:

1.  Copy of Master Contract or applicable GTC
2.  Copy of transaction confirmations
3.  Copy of termination notice sent to PG&E
4.  Chart summarizing key commercial terms of transaction(s)
5.  Chart summarizing unpaid receivables and invoices for same
6.  Chart setting forth termination payment calculation for each terminated 
trade
7.  Paragraph describing methodology used to determine termination payment 
valuation (eg - 4 quotes secured, threw out high and low and averaged middle)
8   List showing quotes secured (entity, person, time and amount) and the 
extent available, written confirmation of such quote

I will be out of the office the rest of this week but will organize a call 
for early next week in order to finalize the PG&E package.  

Thanks for all your help.



Elizabeth Sager 
713 853 6349