ANALYSIS OF CALIFORNIA

Seabron -

Here is an outline of the work product we would like you to consider --

1. How much did the LACK OF POLITICAL LEADERSHIP / LUNACY cost California
consumers?
+ LUNACY = CPUC did not accept $60/Mwh last year
+ unwillingness to fix credit problems
+ Bad CDWR buying habits
+ other

2. Analyze key Cal ISO studies dealing with "overearning" and market abuse.
+ Methodological faults
+ Analyze Key Findings
+ Develop appropriate "Enron" responses

3. Develop framework to assist in responding to political "calls" for market
controls
+ Understand better who "won" from the WEALTH TRANSFER
+ How much was transferred to "Texas generators"?

4. Other fixes still needed
+ A/S markets in California
+ Governance issues
+ other?

I hope this helps frame the work.

Jim