Subject: PG&E Questions
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Mon, 25 Sep 2000 04:03:00 -0700 (PDT)

My responses to one set of PG&E questions would be as follows.  Dean is 
answering the other one and will send back to you directly.

* What is Enron's intent re: continuing involvement?  PG&E is
concerned about any potential requirements that they might be required to
either purchase fuel from Enron or engage Enron as the power marketer.

RESPONSE: Enron is very flexible re continuing involvement:  scheduling 
coordination, fuel supply, power marketing, etc.  We are also flexible re the 
time period and the terms of the continuing involvement.  Whatever 
arrangement is developed would be mutually beneficial.

* What is status of EPC negotiations.  Will they be required to engage
NEPCO as the EPC contractor?  Does the EPC contractor have control over the
turbines?

RESPONSE: o EPC negotiations are complete with NEPCO.  Contract has not been 
executed, but has been "put on the shelf" awaiting decision on successful 
bidder for the purchase of the Pastoria project from ENA.  Successful bidder 
and NEPCO will each have the option of executing the EPC agreement.

  o Successful bidder is under no obligation to engage NEPCO.

  o West LB has control of the turbines.  They can be assigned either to the 
LLC or to ENA.  (If assigned to ENA, it was because the successful bidder for 
the Pastoria project did not want the turbines with the acquisition.)  If 
assigned to the LLC as part of the acquisition, the LLC can then assign the 
turbines to the ultimate EPC contractor.   

* They also questioned whether there would be any "agricultural
restrictions"?

RESPONSE: The project site is presently under a Williamson Act contract to 
maintain agricultural use in exchange for lower taxes.  Last week, the Kern 
County Board of Supervisors voted to cancel the Williamson Act contract to 
allow for industrial use, which started a 180 day public comment period.  
However, the Governor has on his desk a bill for signature that would reduce 
the public comment period for the cancellation to the same time frame as the 
request for rehearing period for the CEC Final Decision.  (The Governor has 
until 9/30 sign the bill and is expected to do so because of the overwhelming 
support of the bill in the Assembly and the Senate.)  The cancellation will 
be contingent upon a successful CEC decision and a payment of a Williamson 
Act cancellation fee.