---------------------- Forwarded by James Derrick/Corp/Enron on 12/08/2000
07:01 PM ---------------------------
From: AL ALEXANDERSON/ENRON@enronxgate on 12/07/2000 09:15 PM
To: James Derrick/Corp/Enron@ENRON
Subject: PGE legal report
Jim, I need to apologize and confess I skipped the call this morning because
of an uncontrollable addiction to the Presidential election proceedings.
David Boies and Barry Richards were just too much to pass up. Sorry.
Not much here. We settled the Beaver lease cases at the same price we paid
the other lessors and without any of their attorney fees. Good result. We
have FERC approval of the Sierra sale. SEC looks good for Jan or Feb.
I am working with Richard Sanders and Robin Gibb on defense to the California
We have a new offer from BNFL that will be the subject of a conference call
soon. Looks like they will pay us about 75% of our damages to go away.
One new risk is the upcoming cold spell and very high Northwest prices. This
will cost us a lot of money, possibly not recoverable from customers, and may
spread the litigation over high prices to the Northwest. This could develop
as a risk to the Sierra sale in the extreme, but right now appears manageble.
More on this as it develops. The Enron litigation team is here on Monday and
we will cooperate on strategy and resources as prudent.
Finally, we have received a settlement offer on the Grant County case that
looks good and we are pursuing it. Al.