Subject: Re: CalPX is going to court to have PG&E's ISO payment put in escrow
From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Fri, 9 Mar 2001 23:55:00 -0800 (PST)

There is a conference call on Monday that I have asked the Quinn Emanuel 
folks to participate in.If anyone else wants to participate, contact Bill 
Urquhart. I am out on Spring Break but can be reached at 713-410-6128 or 
817-922-0998

	Steve C Hall
	03/08/2001 08:11 PM
		 
		 To: Richard B Sanders/HOU/ECT@ECT, [email-masked], Christian 
Yoder/HOU/ECT@ECT
		 cc: Murray P O'Neil/HOU/ECT@ECT, Chris Stokley/HOU/ECT@ECT
		 Subject: CalPX is going to court to have PG&E's ISO payment put in escrow

Earlier this week, PG&E paid $177 million to the ISO.  The ISO has not 
distributed that money to creditors because of the Enron v. CalPX suit.  As 
documented in an earlier e-mail, Chris Stokley, Murray O'Neill, and I called 
the ISO's treasurer and explained that the judge's order expressly excluded 
payments to the CAISO from the PX's general right not to pay creditors.

The ISO now informs us that the CalPX plans to have PG&E's payment 
transferred to the PX into an escrow account.  I copied the key part of the 
ISO's document below, and the full document is attached.

"Additionally, the ISO received $171,116,114.43 ($177 million less GMC 
obligation) directly from PG&E.  PG&E indicated the funds were to be applied 
in payment of California Power Exchange ("Cal PX") obligations.  The ISO has 
been contacted by the Cal PX, and they have indicated they believe they are 
entitled to such funds and that such funds are subject to a pending action in 
federal court entitled "Enron Power Marketing, Inc. and Enron Corp. v. 
California Power Exchange Corporation", Case No. 01-00901CM (Central District 
of  California.  The Cal PX has indicated they plan to seek an order within 
the next 7-10 days with the Court to have the funds transferred to the Cal PX 
for deposit into an escrow account pursuant to Judge Moreno's Preliminary 
Injunction.   These funds are being held by the ISO in a segregated interest 
bearing account pending resolution of this issue by that court."

I think we all would agree that the money belongs to ISO creditors, and that 
the PX has no claim on these funds.  My guess is that the PX would like to 
have this money so that it can deduct administrative expenses from it.  

If I can provide more information on this, let me know.

Steve
---------------------- Forwarded by Steve C Hall/PDX/ECT on 03/08/2001 06:00 
PM ---------------------------

"Woertz, Byron" <[email-masked]> on 03/08/2001 05:23:16 PM
To: ISO Market Participants 
<IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=ISO+20MARKET+20PARTI
[email-masked]>
cc: SC Settlements Contacts 
<IMCEAEX-_O=CAISO_OU=CORPORATE_CN=DISTRIBUTION+20LISTS_CN=SCSETTLECONTACTS@cai
so.com>, "Leiber, Phil" <[email-masked]> 

Subject: CAISO Notice - Distribution of Funds on December, 2000 Preliminar y 
Invoice

  ISO Market Participants
  SC Settlement Contacts
  Attached is a report of the ISO's distribution of funds
received based on the December 2000 preliminary invoice.
   <<03082001 ISO Market Participants Notice - December
Billing.doc>>
  We will also hold a conference call tomorrow afternoon, 1:00
p.m. - 2:00 p.m. PST, to address any outstanding questions you may have
regarding this fund distribution.  We will conclude the Market Stabilization
conference call by 1:00 p.m. PST so that we can address both topics with
East- and West-Coast clients before the weekend.  The call information is as
follows:
  Call-In Number:  877-381-6005
  Passcode: 760357
  Leader:  Byron Woertz

  Byron B. Woertz, Jr.
  Director, Client Relations
  (916) 608-7066

 - 03082001 ISO Market Participants Notice - December Billing.doc