MIsc.

Jeff,

Regarding your voice mail, here is information on today's Dunn hearing
as well as my meeting with Pescetti:

You can listen to most Senate and Assembly hearings through their
respective web pages. From the Senate page (www.sen.ca.gov) go to
"Audio Links", then to "Listen", then to the specific hearing. From the
Assembly page (www.assembly.ca.gov) go to the bottom of the page
"Assembly Audio Session and Committee Hearings", then go to the specific
hearing.

While today's hearing is still going on, here is what transpired with
Edward Kahn as of 2:40 p.m..

Kahn went over his previously released SCE sponsored report on
withholding. He discounted the Mirant sponsored Hogan report as
inconclusive and indicated that he will be releasing a response
shortly. Kahn indicated that Tim Belden refuted his report at a meeting
in Santa Fe but that Tim would not "predictably" release hard copies of
his report. Kahn also referenced an Enron document addressing his
report contained in an Enron FERC filing. Senator Dunn told his staff
to make note of Tim's name and the reports.

Senator Dunn indicated that the committee is now in possession of
confidential ISO documents.

Regarding Pescetti, he called Smutney, Gary Ackerman and I into a
meeting. Gary did not show up. Anthony discussed four items he is
considering legislatively:

1) Edison deal minus the assets with a rate cap. He is concerned that
if SCE goes under the state will implement the PPA through drastic
measures.
2) Establishing a 15 month cost-plus rate cap with one condition, the
state must build 10,000 mw within the 15 months or the cap will be
lifted.
3) Direct access (I told him to talk to Dave Kelley before he does
anything)
4) Expedited Path 15 legislation, perhaps with partial generator
funding.

He expressed interest in real time metering as a means to increase
conservation. Smutney suggested using part of the PPA money to install
meters for all customers. I told him Enron used these meters with great
success for the industrials. Anthony had some concern with reliability
so I told him I would get information. I'm working with Elizabeth
Linell on this.

He also expressed interest in buy-down so I gave him Enron's plan.

Anthony said he is working alone on these proposals.

Scott