Thank you.  For what it's worth, this tracks well with what I'm hearing.
Best,
Jeff



	James D Steffes
	02/09/2001 02:19 PM
		 
		 To: Steven J Kean/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron
		 cc: 
		 Subject: California Power 2/9

FYI
----- Forwarded by James D Steffes/NA/Enron on 02/09/2001 02:23 PM -----

	Robert Johnston@ECT
	02/09/2001 11:12 AM
		 
		 To: John J Lavorato/Corp/Enron, Jeffrey A Shankman/HOU/ECT@ECT, Louise 
Kitchen/HOU/ECT@ECT
		 cc: Vince J Kaminski/HOU/ECT@ECT, John L Nowlan/HOU/ECT@ECT, /ECT, Gary 
Hickerson/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron, James D 
Steffes/NA/Enron@Enron, Jeff Kinneman/HOU/ECT@ECT, Michael W 
Bradley/HOU/ECT@ECT, Michelle D Cisneros/HOU/ECT@ECT, Jaime 
Gualy/NA/Enron@Enron, Phillip K Allen/HOU/ECT@ECT, Mike Grigsby/HOU/ECT@ECT, 
Heizenrader@home.com, Kristin Walsh/HOU/ECT@ECT, Scott Tholan/Corp/Enron@Enron
		 Subject: California Power 2/9

The following information is from sensitive sources.  Please treat with 
discretion.

Contact Robert Johnston (x39934) or Kristin Walsh (x39510) for questions or 
additional info.

Bankruptcy
Early this week, there was a closed door meeting held by the Western Power 
Trading Forum in Arizona.  The meeting took place outside California to avoid 
press coverage and allow IPPs to maintain a low profile.  Association 
representatives believe that regardless of what happens with the PUC vs. 
Utilities ruling expected on Monday, some IPPs will take the utilities into 
involuntary bankruptcy.   Our source expects that absent a significant last 
minute breakthrough, the filing will happen within the next two weeks, and 
"probably" next week.  As stated in yesterdays report, the IPPs are very low 
on cash and are not able to cover the debts of the PG&E and Socal.  Only 
three creditors are needed with uncollected debts of more than $10,000 to 
file involuntary bankruptcy.

Bail Out
Davis has been meeting with the chief executives of both utilities in a last 
ditch effort to make a deal prior to Monday's court ruling.  The most likely 
scenario is for state ownership of the utilities transmissions assets.  
However, coming to an agreed upon price will be very challenging.   In 
addition, PG&E and Edison appear to have competing agendas in pursuing a bail 
out plan.  Davis is expect to continue meetings through out the weekend in 
hopes of reaching an agreement before Monday.
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