Re: P G & E Credit Assurance

pls print. thanks df
---------------------- Forwarded by Drew Fossum/ET&S/Enron on 01/26/2001
01:52 PM ---------------------------

Drew Fossum
01/26/2001 01:21 PM
To: Rod Hayslett/FGT/Enron@ENRON
cc: Paul Cherry/GPGFIN/Enron@ENRON, Jerry Peters/NPNG/Enron@ENRON, Julia
White/ET&S/Enron@ENRON, Rick Dietz/ET&S/Enron@ENRON, Maria
Pavlou/Enron@EnronXGate, Steven Harris/ET&S/Enron@ENRON, Lee
Huber/ET&S/Enron@ENRON, Steven Harris/ET&S/Enron@ENRON

Subject: Re: P G & E Credit Assurance

I think I beat your deadline for internal distribution, but we need a bit
more time to make sure this approach will work. In particular, Julia and
Rick need to take a quick look at the true up mechanism and I need to go
back through it one more time to make sure I haven't forgotten something and
to clean it up. I look forward to your comments. DF

Rod Hayslett

01/26/2001 12:57 PM
To: Paul Cherry/GPGFIN/Enron@ENRON
cc: Jerry Peters/NPNG/Enron@ENRON, Drew Fossum/ET&S/Enron@ENRON

Subject: Re: P G & E Credit Assurance

I would agree with Paul, unless Drew thinks we can get the agreement out of
here in the next 30-40 minutes.

From: Paul Cherry 01/26/2001 12:46 PM

To: Jerry Peters/NPNG/Enron@ENRON, Rod Hayslett/FGT/Enron@ENRON, Drew
Fossum/ET&S/Enron@ENRON
cc:

Subject: P G & E Credit Assurance

In order to comply with the request we have made to P G & E of a 12:00
P.M. CST deadline, Chris Chung of P G & E has advised that our proposal has
to be submitted to him by Noon today in order to effect a wire transfer by
the Monday deadline. Drew is close in the completion of generating the
Agreement, however, with the internal review and approval process, it is
doubtful we can achieve the timetable needed by P G & E. It would be my
recommendation that we extend the deadline from Monday, January 29 at Noon to
Tuesday, January 30 at Noon. This would permit our internal review with the
expectation of sending P G & E our Agreement by Monday morning and allowing
time for their review. I have spoken to Drew and he is comfortable with this
approach. Additionally, in my conversation with Chung, I indicated that our
approach and proposal would be for P G & E to wire transfer the necessary
funds prior to our providing transportation for February and then payment
would be expected to be made for the January transportation on the
appropriate due date in February. (Approximately the tenth )

Please advise your comments at your earliest conveniece.

Thanks and Regards.