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 ---------------------- Forwarded by Rudi Zipter/HOU/ECT on 01/25/2001 08:34 
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From:  Rudi Zipter                                                            
 01/25/2001 08:37 AM	
	
	
	                           
	

To: Ted Murphy/LON/ECT@ECT, David Port/Market Risk/Corp/Enron@ENRON, Vladimir 
Gorny/HOU/ECT@ECT, Frank Hayden/Corp/Enron@Enron, William S 
Bradford/HOU/ECT@ECT
cc:  
Subject: 


The equity of Edison International and PG&E will trade substantially higher 
at the opening today ....


01/25 08:57 Western Gas extends gas deliveries to PG&E 

NEW YORK, Jan 25 (Reuters) - Western Gas Resources Inc. <WGR.N> said Thursday 
it will deliver an additional 5,000 million British thermal units (mmBtu) of 
gas per day through Feb. 7 to Pacific Gas and Electric Co. pursuant to recent 
orders issued by the U.S. secretary of energy. 

According to the Temporary Emergency Natural Gas Purchase and Sale Orders, 
issued by the secretary of energy on Jan. 19 and 23, Western Gas will make 
the deliveries under terms consistent with a terminated supply agreement, 
excluding any terms requiring prepayment, the company said in a statement. 

The 5,000 mmBtu/day represents less than one-half of one percent of PG&E's 
typical daily supply requirements of 1.44 billion cubic feet (bcf) per day 
for the month of January. 

PG&E is a regulated energy delivery company serving northern and central 
California. The utility is owned by energy holding company PG&E Corp. <PCG.N> 
of San Francisco. 

The utility, which serves 3.8 million gas customers in the the region, said 
earlier in the week it has piled up more than $7 billion in wholesale power 
costs, which cannot be passed on to customers because of a rate cap imposed 
by the state's 1996 deregulation law. 

California, which experienced two days of rolling blackouts last week in the 
northern and central parts of the state, continues to see paper-thin power 
reserve levels. 

Western, an independent natural gas company based in Denver, estimates it 
will have total invoices outstanding pursuant to the terminated supply 
agreement and including deliveries through the duration of these orders 
totaling $2.2 million. 

Western said it has no other outstanding exposure to either PG&E or 
California's other regulated energy delivery company, Southern California 
Edison Co. 

Southern California Edison, which serves customers in southern California, is 
a subsidiary of energy holding company Edison International <EIX.N> of 
Rosemead, Calif. 

"Western will comply with the Department of Energy's orders and sympathizes 
with the citizens of California during this period of uncertainty, however, 
we believe that this issue is best addressed by PG&E, the California Public 
Utilities Commission and the State of California," Western Chief Executive 
and President Lanny Outlaw said in the statement. 

"We have difficulty understanding how our company, our employees in Colorado, 
Wyoming, Texas, New Mexico, Louisiana and Oklahoma, and our shareholders can 
be expected to bear any loss as a result of these orders. We intend to 
vigorously act to recover any losses and protect our numerous stakeholders," 
Outlaw added.
frank.hayden@enron.com, darren.vanek@enron.com, jason.williams@enron.com