California ,
 Can you get me these two articles by Fri?
----- Forwarded by Richard B Sanders/HOU/ECT on 09/28/2000 05:41 PM -----

	"JOHN G KLAUBERG" <JKLAUBER@LLGM.COM>
	09/28/2000 08:50 AM
		 
		 To: <Mark.E.Haedicke@enron.com>, <Richard.B.Sanders@enron.com>
		 cc: 
		 Subject: California


Mark & Richard:  Since I have the benefit of reading the WSJ on my commute 
into the City, I thought I would just let you know if you had not see it 
already that there is a follow up article today to yesterday's article about 
the tremendous losses being absorbed by PG&E and SoCalEd due to the spike in 
wholesale power prices.  The article today, not surprisingly, talks about the 
significant 3Q earnings that are anticipated to be reported by the 
unregulated generating companies (E.g., Reliant, NRG and Southern) that 
purchased the plants from PG&E and SoCalEd.  While this "news" is not 
unexpected, it nonetheless is the type of article that tends to excite 
consumer advocates, politicians and regulators since it focuses on what it 
calls the "irony" of the utilities now suffering huge losses (which 
ultimately will be borne by consumers to some, and perhaps a large, extent) 
from having to buy power from assets they once owned.  Obviously, the concern 
is that the rhetoric overtakes a rational examination of the system.  I know 
that each of you are following this situation very closely, but I thought I 
would just drop you a quick note in any event.  John

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John Klauberg
LeBoeuf, Lamb, Greene & MacRae, L.L.P.
212 424-8125
jklauber@llgm.com
linda.guinn@enron.com