Discussion of California Background & Issues

Attached please find the write-up on California.

The paper includes four sections - (1) Background & Status, (2) Upcoming Issues & Recommendations, (3) Legislative and Regulatory History of California Restructuring, and (4) Summary of PG&E - Enron Correspondence on Payment of Negative CTC.

We have also pulled together most of the primary documents (CPUC Orders, Legislation, etc.) that are discussed in this paper. This material is quite lengthy and if anyone wants a copy, please let me know (I intend to send one to Tim Belden/Steve Swain).

If we need to hold a meeting to discuss any of this, I'll be happy to set something up for tomorrow.

Thanks,

Jim