Subject: PSE&G LOI
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Thu, 7 Dec 2000 23:16:00 -0800 (PST)

I had a good conversation with Dave Wohlfarth of PSE&G yesterday concerning 
the proposed LOI.  He had received comments back  from his Attorney (Ken 
Caratta) and had 2 issues he needed to circle back with him on.  These issues 
concern the process of approvals by PSEG and ENA of the final Order that 
would come from the NJ BPU relating to the transfer of assets over to their 
unregulated affiliate "Newco".   Ken is out of the office today but will be 
back in Monday.  Dave's target is to get us their comments late on Monday.  
He would also like to have a conference call by mid-week to work through the 
document with the expectation to have it signed by the end of the week.  We 
need to be ready to update our analysis once we receive their revisions to 
the LOI.

Concerning the Filing - a Pre-Hearning Conference has been noticed and  
scheduled with the Office of Administrative Law Judge for December 19th.  It 
is anticipated that the procedual schedule for comments and hearings will be 
set at that time.  Dave would like to finish the LOI prior to the hearing.  
We will be participating and intervening in the hearings.

Good news on the Genco side of PSE&G - The NJ Supreme Court ruled 4 to 1 to 
approve the transfer of the generation assets over to PSEG Power LLC  and the 
approximate $ 3 Billion securitization of  "stranded costs" on the assets.  
Getting this approve has been important to PSE&G and should help with 
precedent on the eventual transfer of the gas assets.

Please give me a call if you have any questions.

- Gil -