Enron Mail

From:robert.johnston@enron.com
To:greg.whalley@enron.com, gary.hickerson@enron.com
Subject:California 5/24
Cc:markus.fiala@enron.com, bryan.seyfried@enron.com, paul.pizzolato@enron.com,jeff.kinneman@enron.com, michael.bradley@enron.com, michelle.cisneros@enron.com, jaime.gualy@enron.com, danielle.romain@enron.com, scott.tholan@enron.com, kristin.walsh@enron
Bcc:markus.fiala@enron.com, bryan.seyfried@enron.com, paul.pizzolato@enron.com,jeff.kinneman@enron.com, michael.bradley@enron.com, michelle.cisneros@enron.com, jaime.gualy@enron.com, danielle.romain@enron.com, scott.tholan@enron.com, kristin.walsh@enron
Date:Thu, 24 May 2001 04:49:00 -0700 (PDT)

Regarding the question as to how much of a "haircut" generators
would be willing to take, we have received the following reports:

- It appears at this point that many generators would be disinclined to
accept a 70% haircut without getting something in return. For instance,
generators might agree to this in return for immunity from further state
prosecution for damages, anti-trust issues, etc.

- The 70% haicut "consensus" in the legislature should not be overstated. The
Democrats originally proposed this, and the Republicans yesterday essentially
said "me too" in announcing their Plan B. However, sources report that there
remains disagreement in the legislature over this number, despite the fact
that it is the number most often suggested as of now.

- We will continue to make inquiries on this question and will report in more
detail as soon as possible.