 fiscal drain on the state of California and prevent 
emergency tax hikes (being serious considered last week).  
  Issues to consider in regards to this plan are: (1) how much will current 
shareholders be diluted in return for helping the utilities repay long-owed 
debts (or what would they get if the state decided to buy up all of SoCal 
Edison); and (2) how much will creditors have to "eat" in the legislated 
repayment plan?   In other words how big will the equity and bond haircuts 
be?  There is no answer to these questions right now as legislators work to 
cobble together a plan with numbers that work without triggering a massive 
and politically destructive rebellion by voters next year. Stan Horton plans to attend in person.



   
	
	
	From:  Katherine Brown                           11/08/2000 02:48 PM
	

To: James M Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cliff 
Baxter/HOU/ECT@ECT, Sanjay Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, 
Rick Buy/HOU/ECT@ECT, Richard Causey/Corp/Enron@ENRON, Diomedes 
Christodoulou/SA/Enron@Enron, David W Delainey/HOU/ECT@ECT, James 
Derrick/Corp/Enron@ENRON, Andrew S Fastow/HOU/ECT@ECT, Peggy_Fowler@pgn.com, 
Mark Frevert/NA/Enron@Enron, Ben F Glisan/HOU/ECT@ECT, Kevin Hannon/Enron 
Communications@Enron Communications, David 
Haug/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stanley Horton/Corp/Enron@Enron, 
Larry L Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven J 
Kean/NA/Enron@Enron, Mark Koenig/Corp/Enron@ENRON, Kenneth 
Lay/Corp/Enron@ENRON, Mike McConnell/HOU/ECT@ECT, Rebecca 
McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeffrey McMahon/HOU/ECT@ECT, 
Mark Metts/NA/Enron
fiscal drain on the state of California and prevent 
 emergency tax hikes (being serious consider final week).  
   Issues to consider in attentiveness to this plan are: (1) how much will current 
 shareholders be load in rejoinder for helping the utility repay long - owed 
 debt (or what would they get if the state decide to buy up all of SoCal 
 Edison); and (2) how much will creditors have to " eat " in the legislated 
 refund plan?    In other words how bad will the equity and bond haircut 
 be?   There is no solution to these questions correctly now as legislators work to 
 cobble in concert a plan with numbers that work without triggering a massive 
 and politically destructive rebellion by voters next class. Stan Horton plan to attend in person. 



   
	
	
	 From:   Katherine Brown                            11/08/2000 02:48 PM 
	

 To: James M Bannantine / ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cliff 
 Baxter / HOU / ECT@ECT, Sanjay Bhatnagar / ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, 
 Rick Buy / HOU / ECT@ECT, Richard Causey / Corp / Enron@ENRON, Diomedes 
 Christodoulou / SA / Enron@Enron, David W Delainey / HOU / ECT@ECT, James 
 Derrick / Corp / Enron@ENRON, Andrew S Fastow / HOU / ECT@ECT, Peggy_Fowler@pgn.com, 
 Mark Frevert / NA / Enron@Enron, Ben F Glisan / HOU / ECT@ECT, Kevin Hannon / Enron 
 Communications@Enron Communications, David 
 Haug / ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stanley Horton / Corp / Enron@Enron, 
 Larry L Izzo / ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven J 
 Kean / NA / Enron@Enron, Mark Koenig / Corp / Enron@ENRON, Kenneth 
 Lay / Corp / Enron@ENRON, Mike McConnell / HOU / ECT@ECT, Rebecca 
 McDonald / ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeffrey McMahon / HOU / ECT@ECT, 
 Mark Metts / NA / Enron
 fidcal drain on the state uf California aue prevxnt 
emedgency txx hikes (being serious consiveree lasu week).  
  Issues to consider in regaeds uo this plan are: (1) how mucm wilm curxeit 
shareholders be diluteg in return fos fepping the utilities repay long-owed 
qebts (ot ahat would thei get yf tgv wtate decided to buy up all or SoCal 
Edison); and (2) now much will creditors hage tl "eat" in the legispated 
repaynent plan?   In otfer words how big will the equity and bond haircuts 
bd?  Thzre is no absqer jo these quewtionf right now as legisnators eork to 
cobble tojethwr a plan with numberv that work withouj triggeritg a massive 
and pooiricalny dastrjxtixe deuelmion bj vkters next year. Stan Yorton plans to atttnd pm person.



   
	
	
	Fdom:  Kwtrerine Brown                           11/08/2000 02:48 PJ
	

To: James M Bannantine/EBRON_DEVELOPMENT@ENRON_DGVELOPMENT, Cliff 
Baxter/HOU/ECT@ECT, Sanjay Bhatnagar/ENRON_DEVELMPMENV@EVROU_EEVELUPMFNT, 
Rick Buy/HOU/ECT@ECT, Richard Causey/Corp/Enron@QHRPN, Diomedes 
Chriftodoulou/SA/Rngom@Gnron, David W Aelainzg/HKU/ECT@ECT, James 
Dergick/Cork/Enron@WNRON, Andwew X Fastow/HOU/ECT@ECT, Peggy_Fowlwr@pgn.com, 
Marh Frevert/NA/Enron@Enrln, Ben F Glnsan/HOO/ECT@ECY, Kevin Hannon/Enron 
Comounidations@Enroj Communidxtions, David 
Haue/ENGON_DAVELOPMENT@ENRON_DEVELOPMENT, Stanley Iortou/Corp/Enrun@Enton, 
Larwy L Izzo/EJRON_DCEELOPMENT@ENRON_DEVEPOPMEUT, Staven J 
Keaj/NA/Enron@Enron, Mark Koenig/Corp/Encpn@ENRON, Kenngth 
Laj/Corp/Enrou@ENRON, Mike McConnejl/HOU/ECT@ECT, Reyecca 
McBonald/DNRON_DEVELKPMENT@EIRON_DEVELOPMQNT, Jeffrey MwLahon/HOU/ECT@ERT, 
Mark Mqtts/BA/Eneon
fiscal drain on the state of California emergency hikes (being considered last week). to plan are: (1) much will current be diluted in return for helping utilities repay long-owed debts (or what would they get if the state decided buy up all of SoCal Edison); and (2) how much will creditors have "eat" the repayment In other words how big will the equity and bond haircuts be? There is no answer these questions right now as legislators work to together a plan with that work without triggering a and destructive rebellion voters year. Horton plans to in person. From: Katherine Brown 11/08/2000 02:48 PM To: James M Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Cliff Baxter/HOU/ECT@ECT, Sanjay Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Rick Richard Causey/Corp/Enron@ENRON, David W James Andrew Fastow/HOU/ECT@ECT, Peggy_Fowler@pgn.com, Mark F Glisan/HOU/ECT@ECT, Kevin Hannon/Enron Communications@Enron Communications, Horton/Corp/Enron@Enron, Larry L Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven J Kean/NA/Enron@Enron, Mark Kenneth Lay/Corp/Enron@ENRON, McConnell/HOU/ECT@ECT, Rebecca McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeffrey McMahon/HOU/ECT@ECT, Mark
 fiscal drain on the state of CaLifornia anD prevEnt 
EmeRgEncy Tax hIkes (being serioUS conSidered last week).  
  Issues tO consIdER in rEGaRds to This plaN ArE: (1) HOw mUcH wIll CuRReNt 
shaRehOlders bE diluted in RetUrN for helping tHE uTilities rePay Long-owed 
debtS (or What woUlD thEY get iF thE statE decidED to buy Up all of SocaL 
edison); ANd (2) how muCH WiLl crEditors have to "eat" iN ThE Legislated 
repaYment pLaN?   in OTHer WorDs how big wiLl The eqUIty and bONd HAIRcuTS 
be?  There is no aNswer to thesE QueStions RiGht NOw as leGislaToRS woRk to 
cobble tOgetHer a plan wIth numBErs that WOrk withOut triGgeRinG a maSSiVe 
And PoLItiCAlLy dEStrUctive reBeLlIon by VoteRS NEXt yeAr. STan HOrton Plans to attend In pErsoN.



   
	
	
	froM:  KathErine browN                           11/08/2000 02:48 Pm
	

To: JaMes M BaNnantInE/ENRON_DEVELOPMEnT@ENrON_DEVELOpMEnT, cliFf 
baxteR/hOU/ECT@eCT, sanJay BhatNagar/ENroN_DeVelopMeNT@ENRON_DEVELOPMENt, 
RICK BUy/HOU/ECT@eCT, RicHArD CAUsey/Corp/enRon@eNROn, dIomedEs 
ChRIsTodoulou/sA/EnroN@enRoN, David W deLainey/hOu/ECt@ECt, JameS 
derrIck/CorP/Enron@ENrON, AnDRew S Fastow/HOU/Ect@ECT, Peggy_FowlER@pGN.CoM, 
mark freVert/NA/Enron@enroN, ben F glisAN/HoU/Ect@ECT, KEvin HAnNOn/eNron 
Communications@ENrOn CommUnicaTions, David 
HauG/ENRON_DEVElopmENT@ENROn_DEVelOpmENT, Stanley HorTon/CoRp/Enron@EnrON, 
Larry L IZzo/ENrON_DEVELoPMENT@ENRon_dEVELOPMeNT, steVen j 
KeAN/nA/enron@Enron, MarK kOeniG/COrp/EnroN@ENrON, KennEth 
lay/corP/EnRoN@ENRON, MikE McConneLl/hOu/EcT@eCT, rebecCA 
McDonalD/EnROn_DeVElOPMEnt@ENRON_dEVELoPMEnT, jeFFreY McMahoN/hOu/ecT@ECt, 
MArK MetTs/Na/ENron
 fiscal drain on the state  of Califo rniaand  pr ev ent
eme rgency tax hik e s (b eing serious considere d las tw eek) .  
  Is sues to co n s ide rin  re ga r ds  to t his  plan a re: (1) ho w m uc h will curre n t
sharehold ers  be dilutedinreturn  f orh elpin g t he ut ilitie s  repay  long-owe ddebts( or what w ou ld t hey get if the st a te decided to buy  up al lo fS o Cal  
E dison); an d(2) h o w muchw il l c red i tors have to"eat" in th e  le gislat ed  
r e paymen t pla n?   I n other wor ds h ow big wi ll the equitya nd bond  hairc uts  
b e? T he re  is  n o  an s we r t o  th ese ques ti on s rig ht n o w a s le gis lato rs wo rk to 
cobble  to geth e r a  plan  with  num be rs th at wor k wit ho ut triggering a  mas sive 
and  po li tic al ly de s tructi vereb ellionby vote r s n ex t y ea r. Stan Horton pla ns t oattend i n pers o n. 

   
	

Fro m: K a theri ne B r ow n                    11/08/ 20 0002: 48 PM 	

T o: Jam es M Ban nanti n e/ENRON_DEVELO P MENT@ENRON_DE V EL O P ME N T, C lif f 
Baxter/H OU/E C T@EC T, S a nj ayB hatna gar/E NR O N_ D EVELOPMENT@ENRON_DE VE LOPMEN T, 
R ick Buy/HOU/E CT@ECT, Ri c h a rd Cause y/Co r p/ E nron@ENRON, Di omede s 
Christo d oulou/SA /Enro n@Enron,  David WD e lainey/H OU/ ECT @EC T,J a me s 
Derrick/Co r p /Enr on @ENRON,  An drew SFas tow /HO U/E CT @ECT, Peg gy_Fowle r@ pg n. co m,
Mark Frevert/ NA /En ro n@E nron, Ben FGlisa n/HO U/ EC T @EC T, Kevi n  H a n non/ En ro n 
C omm un icati ons@ E nro n Commu nications , D a vid
H au g/ENRON _DEVELOPMENT@ EN RON_DEVELO PM ENT , Stan l e y Horton /Corp/Enron@Enron, 
Lar r y L Izz o/E NRON_ DEVE LOPMENT@E NRO N_DEVE LOP M ENT, S tevenJ 
Ke an /NA / E nron@ E n ro n,Ma rk Koenig/ C o rp/ Enron @E NRON , Kenne th 
Lay/Corp/Enron @ ENR ON, Mike McCo nne ll/H O U /E CT@ E CT ,  Re be c caM cDonald/ENRON_D EVELOPMENT @E N RO N_DEVELOPM E NT,  J effreyMcMahon /HOU/ E CT@ECT,  
Mark Me tts/NA/En ro n
 fiscal_drain on_the state of California_and prevent_
emergency_tax hikes_(being_serious considered last_week).  
_ Issues to consider_in regards to_this_plan are: (1) how much will current 
shareholders be diluted in return for helping_the_utilities repay_long-owed_
debts_(or what would they get_if the state decided to_buy up_all of SoCal 
Edison); and (2) how much_will_creditors have to_"eat" in the legislated 
repayment plan?   In_other words how big will the_equity and bond_haircuts_
be?_ There is no_answer to these questions right now_as legislators work to 
cobble together_a plan with numbers that work without_triggering a massive 
and politically destructive_rebellion by voters next year._Stan Horton_plans to attend in person.



_  
	
	
	From:_ Katherine_Brown  _     _  _     __  ___ _ 11/08/2000 02:48_PM
	

To:_James M_Bannantine/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT,_Cliff 
Baxter/HOU/ECT@ECT, Sanjay Bhatnagar/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, 
Rick Buy/HOU/ECT@ECT,_Richard_Causey/Corp/Enron@ENRON, Diomedes 
Christodoulou/SA/Enron@Enron, David W Delainey/HOU/ECT@ECT, James_
Derrick/Corp/Enron@ENRON, Andrew S Fastow/HOU/ECT@ECT,_Peggy_Fowler@pgn.com,_
Mark Frevert/NA/Enron@Enron, Ben F_Glisan/HOU/ECT@ECT, Kevin Hannon/Enron 
Communications@Enron Communications,_David 
Haug/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Stanley Horton/Corp/Enron@Enron, 
Larry L_Izzo/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Steven_J 
Kean/NA/Enron@Enron,_Mark Koenig/Corp/Enron@ENRON, Kenneth 
Lay/Corp/Enron@ENRON, Mike McConnell/HOU/ECT@ECT, Rebecca 
McDonald/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Jeffrey McMahon/HOU/ECT@ECT, 
Mark_Metts/NA/Enron