Edwards AFB Commodity Procurement Requirements

Mike, attached are the parameters that we would prefer to see in an RFP for
the electrical commodity in California. This approach in any RFP would help
us get the best bid possible for a solicitation.

I understand from our converstaion of last week that Edwards is contemplating
adding the electrical commodity to the RFP that is intended to be used for
privatization of the Edwards electrical distribution system. Given this, we
have put our jurisdictional discussions with the CPUC on hold pending your
resolution of the content of the RFP. We cannot request any dispositive
action from the commission on jurisdiction until we can accurately
characterize the elements of the transaction. Please advise us, as early as
possible whether or not the commodity will be included, and if so, how its
inclusion will be structured.

Jeff/Bob, please comment on the content of the attachment, too.