Message-ID: <25282193.1075840887302.JavaMail.evans@thyme> Date: Wed, 17 Oct 2001 14:33:17 -0700 (PDT) From: f..calger@enron.com To: john.lavorato@enron.com, louise.kitchen@enron.com, tim.belden@enron.com Subject: FW: Thoughts on PX Credit Claim with Edison Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Calger, Christopher F. X-To: Lavorato, John , Kitchen, Louise , Belden, Tim X-cc: X-bcc: X-Folder: \ExMerge - Kitchen, Louise\'Americas\Portland X-Origin: KITCHEN-L X-FileName: louise kitchen 2-7-02.pst FYI - some of this CTC negotiation has been taking place with Dasovich and Tribolet. I think the clean commercial deal for Ken to mention to Bryson is a 2-3 yr gas swap (they are short socal border and malin because some of their qf contracts are indexed to nat gas). Chris Calger 503-464-3735 -----Original Message----- From: Dasovich, Jeff Sent: Wednesday, October 17, 2001 12:04 PM To: Calger, Christopher F. Subject: Thoughts on PX Credit Claim with Edison Chris: A little background (recaps briefly what we discussed on the phone on Monday): A few weeks ago, we (government affairs) approached John Fielder of Edison to see if there was any chance that Edison might be willing to reach a deal on our Negative CTC/PX credit claim. After discussions with RAC, we offered to take 90 cents on the dollar for amounts owed through March 1. (There's general agreement with Edison on what the number is up to January 17, which would only leave 1.17--3.1 in dispute. But recall there's still the FERC refund issue which complicates the issue.) We asked for 10% down immediately and a binding agreement that Edison would pay us by a date certain sometime in the next quarter. In exchange, we said we'd drop our law suits at the PUC. In one suit, we're asking the PUC to have Edison pay us. In the other, we've stopped paying Edison for transportation costs until the PUC gets Edison to pay us. We're depositing what we owe Edison in an escrow account pending resolution. We also agreed to work with Edison to get the PUC to end the whole residual CTC/PX credit framework retroactive to March 1, 2001. (That would reduce Edison's exposure to negative CTC and our exposure to positive CTC.) For his part, Fielder was looking (in addition) for 1) an agreement on our part to forebear, and 2) an agreement that everyone, including DA customers, should pay what they rightly owe for a) Edison's undercollection, b) the bonds, and c) DWR's stranded contract costs. We never resumed the talks in earnest because soon after our talk, Edison struck its bailout deal with the PUC. Hope this helps. Best, Jeff