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.