Commission Order on Securitization of Accounts Receivable for Gas

----- Forwarded by Susan J Mara/NA/Enron on 02/01/2001 09:50 AM -----

JMB <JBennett@GMSSR.com<
01/31/2001 05:33 PM

To: "'James.D.Steffes@enron.com'" <James.D.Steffes@enron.com<,
"'Jeff.Dasovich@enron.com'" <Jeff.Dasovich@enron.com<,
"'Travis.McCullough@enron.com'" <Travis.McCullough@enron.com<,
"'smara@enron.com'" <smara@enron.com<, "Robert Williams (E-mail)"
<Robert.C.Williams@enron.com<, "Mike Smith (E-mail)" <msmith1@enron.com<
cc: MBD <MDay@GMSSR.com<
Subject: Commission Order on Securitization of Accounts Receivable

At the Commission meeting this afternoon, the Commission voted out an order
allowing PG&E to pledge its gas customer accounts receivables for the
purpose of obtaining gas supplies for its core customers. The Commission
did not allow PG&E to pledge its electric customer accounts receivable for
the same purpose. The Commission did, however, provide for PG&E to pledge
it core gas inventory for the purpose of procuring core gas supplies. PG&E
may only pledge its inventory if the value of its gas accounts receivable
is less than the amount it owes gas suppliers at the time of any particular
gas purchase. PG&E's authority to pledge its accounts receivable and
inventory is effective for 90 days or earlier if its credit rating improves.

This decision should be posted on the Commission's web site tomorrow, but if
any one would like a copy earlier, let me know, and I will fax it to you.

Jeanne Bennett