Advise

We continue to perform on our PX block forward sales. Rather than deliver to
Edison and PG&E, the PX has unilaterally decided to schedule this power as
"load deviation" in the ISO market. That is, it is an uninstructed deviation
in the ISO Ex Post market so it receives the "dec" price. This poses two
problems. First, the Ex Post price is a max of $150/MWh while the bilateral
market trades significantly above this price. Second, the ISO has payed us
$0.02 for every $1.00 of sales that EPMI made to them in November. We are
racking up a receivable on this stuff of approximately $1 million per week
(average sales price of $69.50 times a quantity of 150 peak MW). Now the
state has come in and taken the block forward positions. We need to look at
whether we must continue to perform on this obligation.