PG&E Questions

---------------------- Forwarded by Benjamin Rogers/HOU/ECT on 09/26/2000
02:01 PM ---------------------------

Enron North America Corp.

From: Dean Russell 09/26/2000 11:14 AM

To: Benjamin Rogers/HOU/ECT@ECT
cc: David Parquet/SF/ECT@ECT
Subject: PG&E Questions

David Parquet asked me to forward these answers to you:
Question:
Is the major maintenance reserve estimate based on a negotiated Long Term
Services Agreement (LTSA)? If so, will it be in place and transfer with
PEF?
Answer: We have not negotiated an LTSA with anyone at this time, and we do
not expect to have one in place to transfer with PEF. The maintenance
reserve is our estimate based on industry data and information from GE.

Question: Are spare parts for the first major overhaul included anywhere in
the
capital cost estimate or are they assumed to be purchased through the
maintenance reserve estimate (i.e. the LTSA) charge?

Answer: The maintenance reserve is intended to include parts and labor for
the overhaul.