Subject: Conference Call
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Thu, 30 Aug 2001 15:02:54 -0700 (PDT)

For the most part, the committee call was uneventful.  The commandeering action is proceeding.  The State has asked us to stipulate to lift the stay on the chance that it will want to assert counterclaims.  We aren't sure what counterclaims it would have against the PX, so we are asking for details to evaluate the State's request.  The arbitration demand will be discussed in a special call next Wednesday at 3 pacific.  Weg acknowledged that people are still thinking through the implications of the arbitration.  His concern is applying some pressure while the legislature is in session and considering the Edison bailout issue.  Some committee members evidently are concerned about the bearing of an arbitration on a possible involuntary petition.  I suppose we can take this up in our call next Tuesday.  On Sept. 5 the court will consider Edison's objection to employment of Kaye, Scholer and BDO Seidman.  A response will be filed today.  PGE evidently is filing a declaration in support of our committee.  Interesting.  A 2004 exam of Edison is now scheduled on Sept. 25.  We expect that Edison will be moving for some kind of protective order.  Weg wants to form an Edison subcommittee and would like Enron to be on it.  Your thoughts?  The biggest issue of the day related to structuring a plan.  With the prospect that the PX will run out of money soon, we need to define responsibilies, create a budget and find a funding source ASAP.  Weg suggests the earnings on the $400 million (about $6 million to date) to get us through the chapter 11 case.  Then we'll have to find a source for post-confirmation activities like pursuing commandeering litigation, maintaining records, running numbers and making distribtuions.  Cohen made a speech about the need to nail this down soon because his firm is actively involved in litigation matters that cost a lot to maintain.  Let's talk about this issue next week.  We obviously need work to continue and that costs money.  Finally, the Weg settlement is being reviewed, among others, by PGE.  Their initial reaction was quite positive.  Howard hopes to have comments so he can present it to FERC by Sept. 15 as what he styles an "offer of settlement".  Bob

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