Steve --

If you have not called SCE yet, now may be a good time to do so (given the failure of the Legislature to resolve their problems).  

Jim

 -----Original Message-----
From: 	Williams, Robert C.  
Sent:	Monday, September 10, 2001 9:44 AM
To:	Kean, Steven J.
Cc:	Steffes, James D.; Shapiro, Richard; Sanders, Richard B.; Sharp, Vicki; Leff, Dan; Curry, Wanda
Subject:	Call to SCE Regarding Negative CTC Credits

Attorney-Client Privileged Communication

Steve, 

Rick asked me to send you an email regarding a contact with top SCE management about our Complaint against SCE for removing our "Negative CTC Credits" from our current bills.   While we have filed a Complaint with the CPUC and are withholding payments, the CPUC may not act until it is too late to recoup our credits (because our contracts with have expired).  As you know, there is a view among some at the CPUC that the Negative CTC Credits can only be recovered as a bill offset, and is not a cash obligation.  Therefore, SCE restoring the credits to the bills may be the only means to realize our $125 million account receivable.

Today Richard Sanders reported that Reliant, Mirant and others were soliciting Enron's participation in an involuntary filing (to be filed possibly as soon as tomorrow).  Is there any merit in contacting SCE top management and offering to trade our nonparticipation for restoration of our Negative CTC Credits to our bills?

Please call me if you wish to discuss.

Thanks.