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.
Enron Emails
Enron Emails