Responses from SCE and PG&E

Jim, I spoke with Mike Alexander, PG&E, last night. Their legal team met yesterday afternoon regarding our request. He expects we will receive a response from Peter Ouberg today or tomorrow. They are saying that the credits are listed as part of Schedule F of their bankruptcy filing and cannot be reinstated. Mike also commented that they do not view this as a billing dispute and will refer us to Rule 22, Section L. 2. e &f, ESP responsibilities.

Janet Covington, SCE, said their legal and credit team are crafting a response. She did not have a feel for how SCE will view our request. I think it might be a good time to contact Steve Kean.

Let me know if you have questions.