RE: PG&E settlement offer

Thanks.

-----Original Message-----
From: Curry, Wanda
Sent: Friday, November 16, 2001 4:37 PM
To: Dasovich, Jeff; Steffes, James D.
Subject: RE: PG&E settlement offer

Jim and Jeff,

The P& L numbers represented below includes a reserve of $40 million attributable to the FERC Refund exposure specific to wholesale.

Thanks,
Wanda

-----Original Message-----
From: Tribolet, Michael
Sent: Friday, November 16, 2001 3:34 PM
To: Dasovich, Jeff; Steffes, James D.; Mellencamp, Lisa; Curry, Wanda
Subject: FW: PG&E settlement offer

Ken Lay called Rick Buy and I up to his office talk about settlement just now. He would like to settle for liquidity/good news. Rick Buy is going to discuss with Whalley.

-----Original Message-----
From: Tribolet, Michael
Sent: Friday, November 16, 2001 3:30 PM
To: Buy, Rick
Subject: PG&E settlement offer

Below are the proposed discounts we discussed with Ken Lay this afternoon:

USD millions:
Cash from 85 P+L with 85 cent
Discount cent sale of claim sale of claim

Enron $ 85.0 (17%) $361.8 +$129.1
PG&E $237.0 (46%) $232.6 -$ 0.1
Midpoint $161.0 (32%) $297.2 +$ 64.5

If the midpoint (value between PG&E and Enron settlement offers) is acceptable from a liquidity and P+L standpoint, propose countering at a discount of $123 million (move half way to midpoint) to provoke a counter offer. Intent is to settle at midpoint discount of $161 million. The Excel file is attached.

<< File: m011116.xls <<