More Constructive Activity from Lynch

----- Forwarded by Jeff Dasovich/NA/Enron on 03/30/2001 11:22 AM -----

"Daniel Douglass" <Douglass@ArterHadden.com<
03/29/2001 06:13 PM

To:
cc:
Subject: Interesting News

Loretta has just issued the attached ruling requesting the utilities within
10 days to provide the following:
?
1. All presentations to and minutes of meetings of their respective boards
of directors relating to the payment or non-payment of dividends by
respondent utilities to their respective holding companies from January 1,
2000 to present.
2. All presentations to and minutes of meetings of their respective boards
of directors relating to the distribution or transfer of funds or other
assets from the utilities to the holding companies, or vice versa, between
1996 and the date of this order.
3. All communications between the holding companies and their respective
utility subsidiaries relating to the utilities' payment or non-payment of
dividends from January 1, 2000 to present.
4. All communications between the holding companies and their respective
utility subsidiaries relating to the distribution or transfer of funds or
other assets from the utilities to the holding companies, or vice versa,
between 1996 and the date of this order.
5. Edison and PG&E are directed to inform the Commission when, if it all,
they retained bankruptcy counsel and/or financial advisors with insolvency
expertise during 2000 or 2001, and produce all presentations to and minutes
of meetings of their respective boards of directors relating to the decision
whether or not to retain bankruptcy counsel during 2000 or 2001.
6. Respondent holding companies are directed to describe, and produce
supporting documentary evidence, relating to all current restrictions on
distributions or transfers of funds or other assets from their subsidiaries
to themselves, and from themselves to their respective utility
subsidiaries.? Such documentary evidence shall include, but not be limited
to, all organizational documents implementing any ring fencing transaction
and all presentations to, and minutes of, meetings of their respective
boards of directors relating to any ring fencing transaction.
7. Respondent holding companies are directed to describe, and produce
supporting documentary evidence, of any distributions or transfers of funds
or other assets from themselves to any subsidiary, including respondent
utilities, between 1996 and the date of this order.
8. Respondent utilities are directed to describe all planned or required
construction or maintenance, or any other actions that may affect service
and/or reliability, that they have eliminated or deferred between January 1,
2000 and the date of this order.
9. Respondent holding companies are directed to produce documentary evidence
showing whether they have provided infusions of capital to respondent
utilities at any time between June 2000 and the date of this order, and, if
so, the date, amount, and purpose of such infusion.
10. Respondent utilities are directed to produce documentary evidence
showing whether they made demands on their respective holding companies to
infuse needed capital at any time.
11. Respondent holding companies are directed to produce copies of all
credit agreements, debt instruments, and similar documents that purport to
limit the ability of their unregulated subsidiaries (i.e., subsidiaries
other than respondent utilities) to pay dividends, or limit the ability of
respondent holding companies and/or their unregulated subsidiaries to
transfer funds or assets to respondent utilities, or to assume liabilities
for obligations of respondent utilities.
- CPUC01-#93988-v1-A0011038_et_al__Lynch_Ruling__.doc