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

----- Forwarded by Steven J Kean/NA/Enron on 01/13/2001 09:06 AM -----

Stephen Swain@ECT
01/12/2001 06:48 PM

To: Roger Yang/SFO/EES@EES@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, Mary Hain/HOU/ECT@ECT,
Paul Kaufman/PDX/ECT@ECT, Sandra McCubbin/NA/Enron@Enron, Scott
Stoness/HOU/EES@EES@ENRON, Robert Badeer/HOU/ECT@ECT, Tim Belden/HOU/ECT@ECT,
Travis McCullough/HOU/ECT@ECT, Andre
Cangucu/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT@ENRON, Shelia
Benke/Corp/Enron@Enron, Vicki Sharp/HOU/EES@EES@ENRON, Wanda
Curry/HOU/EES@EES@ENRON, Don Black/HOU/EES@EES@ENRON, Gordon
Savage/HOU/EES@EES@ENRON, Donna Fulton/Corp/Enron@ENRON, William S
Bradford/HOU/ECT@ECT
Subject: Re: Financial Analysis of PG&E and Proposed Terms for Settlement

Attached is a new version of the power cost model incorporating Roger's
updated info (retained generation costs and QF capacity payments). It
improves the outlook for PG&E by < $2.00/MWH, mainly as a result of lower
cost estimates for their hydro. SCE's numbers remains about the same. FYI,
the prices in the model are at mid. The switch to change to offer is now on
the Summary page.

Roger Yang@EES
01/12/2001 04:01 PM
To: James D Steffes/NA/Enron@ENRON
cc: 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, Stephen Swain/PDX/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

Attached is an update of utility delivery rates, native generation
weighted-average costs, and QF capacity payments and generation.

Roger