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Richard, Howard seems to acknowledge that the FERC proceedings could themse=
lves, within several months, could bring us to the point of knowing the amo= unt of our claim against PGE even without the benefit of the formula sugges= ted by Weg's proposal. That raises the question of what we get from the We= g settlement. Although he has not specifically articulated the benefits, H= oward would tell you that his settlement would avoid the cost of litigating= the splits, would avoid the delay attendant to inevitable challenges of a = contested FERC order and would get our collateral back sooner rather than l= ater. I'm still not entirely clear about the procedure he intends to adopt= to get his deal done and whether there are potential impediments. He has = characterized the deal as a bankruptcy compromise between PX, the debtor, a= nd the participants. If all the participants go along, that characterizati= on is ok. If some participants (Mirant/SCE) oppose, the only way you can b= ind them to the deal in the PX bankruptcy is through a reorganization plan,= and that itself will take time. Weg seems to think that most participants= will go along. I'm sure Edison would oppose. Although they aren't a favo= red party in the PX case, they could have the ability to stymie a settlemen= t. Next, the settlement also impacts PGE and its bankruptcy. If PGE doesn= 't go along, it can argue that its bankruptcy court has jurisdiction to fix= the claims against PGE, not the PX bankruptcy court. Then the settlement = needs to be presented to and adopted by FERC---again an opportunity for par= ties to object. These procedural hurdles may not have to be dealt with, bu= t I've received no good exposition of how they would be if they in fact mat= erialize. Are you comfortable proceeding on the assumption that everyone w= ill go along? Bob Nelson "This e-mail, including attachments, contains information that is confident= ial and it may be protected by the attorney/client or other privileges. Th= is e-mail, including attachments, constitutes non-public information intend= ed to be conveyed only to the designated recipient(s). If you are not an i= ntended recipient, please delete this e-mail, including attachments, and no= tify me by return mail, e-mail or at (insert your telephone number). The u= nauthorized use, dissemination, distribution or reproduction of this e-mail= , including attachments, is prohibited and may be unlawful. J. Robert Nelson 725 Soth Figueroa St, Los Angeles, Ca. 90017-5436 =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D This e-mail, including attachments, contains information that is confidenti= al and may be protected by the attorney/client or other privileges. This e= -mail, including attachments, constitutes non-public information intended t= o be conveyed only to the designated recipient(s). If you are not an inten= ded recipient, please delete this e-mail, including attachments, and notify= me. The unauthorized use, dissemination, distribution or reproduction of = this e-mail, including attachments, is prohibited and may be unlawful. =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D Content-Transfer-Encoding: quoted-printable Received: from securemail1.llgm.com ([10.4.218.42]) by llgm.com; Mon, 20 Au= g 2001 23:39:01 -0400 Received: from 216.230.64.13 by securemail1.llgm.com with SMTP ( Tumbleweed= MMS SMTP Relay (MMS v4.7)); Mon, 20 Aug 2001 23:40:57 -0400 X-Server-Uuid: 2ddd99fc-ca0e-11d4-9906-00508bdcbe76 Received: (qmail 8445 invoked from network); 21 Aug 2001 03:35:34 -0000 Received: from 216.198.76.235.cypresscom.net (HELO HWEG) (216.198.76.235 ) = by relay2.cypresscom.net with SMTP; 21 Aug 2001 03:35:34 -0000 Return-Receipt-To: "Howard J. Weg" <hweg@pgwlaw.com< From: "Howard J. Weg" <hweg@pgwlaw.com< To: "'Howard Shapiro'" <HES@vnf.com<,=09jdwatkiss@aol.com,=09david.meyer@av= istacorp.com,=09nolan.steiner@avistacorp.com,=09rich.stevens@avistacorp.com= ,=09dvermillion@avistaenergy.com,=09asettanni@bracepatt.com,=09dwatkiss@bra= cepatt.com,=09kcurry@bracepatt.com,=09rcarroll@bracepatt.com,=09GFergus@bro= beck.com,=09andrzej_kabarowski@cargill.com,=09phillip_fantle@cargill.com,= =09psteele@coral-energy.com,=09rreilley@coral-energy.com,=09ray.alvarez@ei.= enron.com,=09cyoder@enron.com,=09jhartso@enron.com,=09jsteffe@enron.com,=09= michael.tribolet@enron.com,=09ray.alvarez@enron.com,=09richard.b.sanders@en= ron.com,=09rsanders@enron.com,=09smara@enron.com,=09Ebiery@fulbright.com,= =09fyanney@fulbright.com,=09tfreiberg@fulbright.com,=09jfrizzell@gibbs-brun= s.com,=09sbishop@gibbs-bruns.com,=09CEKLUND@LLGM.COM,=09DWHITLEY@LLGM.COM,= =09EHUFF@LLGM.COM,=09JKLAUBER@LLGM.COM,=09JRNELSON@LLGM.COM,=09GErspamer@mo= fo.com,=09KIrvin@mofo.com,=09KZeitlin@mofo.com,=09PMar@mofo.com,=09RLoeffle= r@mofo.com,=09jmcgrane@morganlewis.com,=09mgriffen@morganlewis.com,=09hydee= feldstein@paulhastings.com,=09jenniferbaldochi@paulhastings.com,=09Timothy.= Bolden@pinnaclewest.com,=09dmperlman@powersrc.com,=09rosteen@powersrc.com,= =09hao@quinnemanuel.com,=09wdsmith@sempra.com,=09rbeitler@sempratrading.com= ,=09PARAMFJORD@stoel.com,=09rcjosephson@stoel.com,=09SJKAPLAN@stoel.com,=09= awells@strook.com,=09ayudkowsky@strook.com,=09"'Cheryl Feik Ryan'" <CFR@vnf= .com<,=09"'Gary Bachman'" <GDB@vnf.com<,=09"'Julie Richardson'" <JRR@vnf.co= m< Subject: RE: Proposal re CalPX Methodologies Date: Mon, 20 Aug 2001 20:34:54 -0700 Message-ID: <01a201c129f2$3eda4180$0304afc0@HWEG< X-Priority: 3 (Normal) X-MSMail-Priority: Normal X-Mailer: Microsoft Outlook CWS, Build 9.0.2416 (9.0.2910.0) Importance: Normal In-Reply-To: <sb7c0efc.094@vnf.com< X-MimeOLE: Produced By Microsoft MimeOLE V5.00.3018.1300 X-WSS-ID: 179F07C31688053-01-01 MIME-Version: 1.0 Content-Type: text/plain; charset=3D"us-ascii" Content-Disposition: inline It seems to me that FERC's July 25 Order required Judge Birchman to make findings about the exact amounts owed by each buyer to each seller. The proposal to establish methodologies does exactly that, among other things. Therefore, it seems to me that it needs to be part of the the pending California proceedings. That is not to say, however, that it should not also be part of the Chargeback proceedings under the April 6 FERC order. It should also be applicable to those proceedings. Therefore, we need to develop a strategy to make it part of both proceedings. Timing is obviously critical, and I am soliciting the Chargeback movants' views on that subject along with the substance of the proposal. I would like to point out that I have learned from the settlemen= t proceedings before Judge Wagner that we must submit the proposal early in the proceedings to ensure that they are considered and can have an impact. I sent an email to Ron Carroll letting him know that I am available for a conference call at the following times: Weds Aug 22 after 11 am Pacific time, Thurs Aug 23 prior to 1 pm Pacific time, Fri Aug 24 anytime except 1130 am to 2 pm Pacific time Please let me know when we can discuss this further. Thanks for your help.
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