Message-ID: <12067422.1075859208788.JavaMail.evans@thyme> Date: Mon, 19 Nov 2001 05:17:56 -0800 (PST) From: d..steffes@enron.com To: wanda.curry@enron.com, jeff.dasovich@enron.com Subject: RE: PG&E settlement offer Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Steffes, James D. X-To: Curry, Wanda , Dasovich, Jeff X-cc: X-bcc: X-Folder: \Jeff_Dasovich_Jan2002\Dasovich, Jeff\Inbox X-Origin: Dasovich-J X-FileName: jdasovic (Non-Privileged).pst Thanks. -----Original Message----- From: Curry, Wanda Sent: Friday, November 16, 2001 4:37 PM To: Dasovich, Jeff; Steffes, James D. Subject: RE: PG&E settlement offer Jim and Jeff, The P& L numbers represented below includes a reserve of $40 million attributable to the FERC Refund exposure specific to wholesale. Thanks, Wanda -----Original Message----- From: Tribolet, Michael Sent: Friday, November 16, 2001 3:34 PM To: Dasovich, Jeff; Steffes, James D.; Mellencamp, Lisa; Curry, Wanda Subject: FW: PG&E settlement offer Ken Lay called Rick Buy and I up to his office talk about settlement just now. He would like to settle for liquidity/good news. Rick Buy is going to discuss with Whalley. -----Original Message----- From: Tribolet, Michael Sent: Friday, November 16, 2001 3:30 PM To: Buy, Rick Subject: PG&E settlement offer Below are the proposed discounts we discussed with Ken Lay this afternoon: USD millions: Cash from 85 P+L with 85 cent Discount cent sale of claim sale of claim Enron $ 85.0 (17%) $361.8 +$129.1 PG&E $237.0 (46%) $232.6 -$ 0.1 Midpoint $161.0 (32%) $297.2 +$ 64.5 If the midpoint (value between PG&E and Enron settlement offers) is acceptable from a liquidity and P+L standpoint, propose countering at a discount of $123 million (move half way to midpoint) to provoke a counter offer. Intent is to settle at midpoint discount of $161 million. The Excel file is attached. << File: m011116.xls >>