Peggy:

Considering where we are in the divestiture process, I don't think it is the right time to have PGE contract for and administer the Health and Welfare Benefits noted in your memo dated 04/20/01.  In addition, it is likely that a potential buyer would want PGE to come under its own Health and Welfare Benefits.  Switching now could entail having PGE employees being under three Plans in a relatively short period of time.

Stan