DA Suspension in California

Our outside Regulatory Counsel has heard that the CPUC will definitely vote
to suspend direct access on June 28 effective July 1. We will be working
through formal comments and informal discussions to clarify the meaning of
the this suspension.

We are still working to try and modify the Proposed Decisions as they relate
to the PX Credit receivable, with our primary focus on removing this part of
the decision from a vote on June 28.

Jim

---------------------- Forwarded by James D Steffes/NA/Enron on 06/21/2001
07:41 AM ---------------------------
From: Harry Kingerski on 06/20/2001 05:44 PM
To: Marty Sunde/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, Lamar
Frazier/HOU/EES@EES, Don Black/HOU/EES@EES, James W Lewis/HOU/EES@EES, Jeremy
Blachman/HOU/EES@EES, Scott Gahn/HOU/EES@EES, Dan Leff/HOU/EES@EES, Vicki
Sharp/HOU/EES@EES, Scott Stoness/HOU/EES@EES, Tim Belden/HOU/ECT@ECT, Janet R
Dietrich/HOU/EES@EES, David W Delainey/HOU/EES@EES, Mike D Smith/HOU/EES@EES
cc: James D Steffes/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron, Susan J
Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron, Mark
Palmer/Corp/Enron@ENRON, Karen Denne/Corp/Enron@ENRON, Janel
Guerrero/Corp/Enron@Enron, Jennifer Thome/NA/Enron@Enron

Subject: DA Suspension in California

Mike Day just called to say he has heard the California PUC definitely will
vote on June 28 to suspend direct access, effective July 1, except for
written contracts executed prior to July 1, 2001. Suspension of DA has
been identified by the Governor as a necessary prerequisite to bond
issuance.