PG&E Energy Trading - Power, L.P.

This is to summarize our previous discussion:

EPMI took an assignment of ALL EEMC's (an affiliate of EES) deals with PG&E
Energy Trading - Power, L.P. (PGET) whereby EPMI is now buying all of the
power from PGET.
EPMI then acts as "sleeve" for EES and sells the power to EES with a $.05
sleeve fee
With respect to the specific EEMC deal # ACW672, EEMC originally was buying
75MW from PGET at a price of $29.90.
After taking over EEMC's portfolio, EPMI, PGET and Avista Energy entered into
a 3-party assignment, assumption and settlement agreement whereby EPMI and
AvistaEnergy "took out" PGET of the picture for 50MW of the 75MW piece.
By doing so, EPMI thus is buying 50MW from Avista Energy and the remaining
25MW still from PGET
The new 50MW piece from Avista Energy results in a purchase price of $29.80
and a sale price of $29.85 to EES. [the reason for the price decrease is
because when we entered into the 3-party agreement, in order to "take out"
PGET we had to pay them their profit in that deal stream ie monetizing their
spread of $.10 per MW]
The remaining 25MW piece from PGET kept the SAME PRICING of $29.90 since we
left that 25MW block alone.

If you have any additional questions, please call me.

Tracy
503-464-8755