Re: Financial Analysis of PG&E and Proposed Terms for Settlement

----- Forwarded by Steven J Kean/NA/Enron on 01/13/2001 09:05 AM -----

Roger Yang@EES
01/12/2001 07:24 PM

To: Stephen Swain/PDX/ECT@ECT@ENRON
cc: James D Steffes/NA/Enron@ENRON, Steven J Kean/NA/Enron@Enron, Richard
Shapiro/NA/Enron@Enron, Mark Palmer/Corp/Enron@ENRON, Michael
Tribolet/Corp/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Jeff
Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Joe
Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Linda
Robertson/NA/Enron@ENRON, Alan Comnes/PDX/ECT@ECT@ENRON, Mary
Hain/HOU/ECT@ECT@ENRON, Paul Kaufman/PDX/ECT@ECT@ENRON, Sandra
McCubbin/NA/Enron@Enron, Scott Stoness/HOU/EES@EES, Robert
Badeer/HOU/ECT@ECT@ENRON, Tim Belden/HOU/ECT@ECT@ENRON, Travis
McCullough/HOU/ECT@ECT@ENRON, Andre
Cangucu/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@ENRON, Shelia
Benke/Corp/Enron@Enron, Vicki Sharp/HOU/EES@EES, Wanda Curry/HOU/EES@EES, Don
Black/HOU/EES@EES, Gordon Savage/HOU/EES@EES, Donna Fulton/Corp/Enron@ENRON,
William S Bradford/HOU/ECT@ECT@ENRON
Subject: Re: Financial Analysis of PG&E and Proposed Terms for Settlement

The underlying assumptions for the resources are that they return to some
business as usual amortization of these assets (a 20 to 30 year amortization)
assuming that none of the generating assets are uneconomic. Further, it
assumes non-revenue earning regulatory assets (other than the TRA
undercollections) are amortized over the next 5 years.

Roger