UPDATED LAY TALKING POINTS

Attached please find a changed Talking Points -

1. Tries to better finesse the rate increase proposal by limiting increase to
10%;
2. Corrects the cost of new generation - 4,000 MW costs $3.6 billion not $360
million;
3. Clarifies that CDWR's problem is paying off the debt, not just paying for
electricity.

Thanks,

Jim