Problem: BODY: On Sept 21, SoCalGas filed its BCAP. They propose a new firm receipt point trading program based on the open season proposed in the comprehesive settlement. The also propose a return to embedded cost rates, and an elimination of any transmission load risk for the utility. We should discuss whether Enron wishes to participate in this case, which will clearly be a new vehicle for putting gas strategy issues before the commission. Let me know if you need a copy of the application. Mike Day
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A: SUBJECT: SoCalGas BCAP

Problem: BODY: Monday, October 8, 2001 Dear Ken: I am writing to request a meeting with you during the month of November. I plan to be in Houston several times throughout the month, and I'm available to meet at your convenience. I'd like to update you on Children First America's recent successes and upcoming plans, as well as learn more about your interests and priorities. With the upcoming Supreme Court ruling on school choice, our opportunities have never been better for helping children distressed in innercity schools. Thank you for your consideration of this request. Cheryl Hillen will contact your office to see if an appointment might be arranged. Best wishes,
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A: SUBJECT: Meeting with you

Problem: BODY: Missed your call today and I will be in RAC PRC all day tomorrow. Basically Jeff said we must get this exposure down but gave no parameters to the statement. He did ask if any recent issue is causing us concern to which we said no, and I also said we know more about this company than any other exposure we have (which we should). I also spoke with M. Kopper today and he thinks the proposed deal w/ TXU to pay slightly more for a plant with the proviso that we get a cleaner contract is a good idea, rather than paying a lot of money to an investment bank. Moral of story in my opinion is to try and improve deal structure with TXU through the plant purchase or other structured deal. Do no more (large) deals with TXU that significantly increase credit exposure ($10mm??) unless we buy a derivative that reduces exposure simultaneously. Continue to stay on top of TXU with frequent meetings with their management to maintain a close relationship with good communication. Lets try and discuss Wed if possible.
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A:
SUBJECT: TXU Credit Exposure