HEALTH & WELFARE BENEFITS ,
 Peggy:

Considering where we are in the divestiture process, I don't think it is the 
right time to have PGE contract for and administer the Health and Welfare 
Benefits noted in your memo dated 04/20/01.  In addition, it is likely that a 
potential buyer would want PGE to come under its own Health and Welfare 
Benefits.  Switching now could entail having PGE employees being under three 
Plans in a relatively short period of time.

Stan
peggy.fowler@enron.com