December Nominations

Kim, Patti, Suzanne, and Ted-

The total burn nomination for month of December 2001 is 6,500MMBtu per day. This is made up of the sum of the following:

1. 3,989MMBtu/day purchase from Engage @ SoCal Border (net, after PG&ENW losses 4,124MMBtu/day @ Kingsgate);
2. 3,000MMBtu/day APEA gas;
3. 1,000MMBtu/day balance of year strip purchased on behalf of Azusa@ $7.71/MMBtu;
4. 2,000MMBtu/day under two separate fixed contracts of 1,000MMBtu/day each;
5. 500MMBtu/day March 2001 through Feb strip purchased @ $7.63;
6. Saleto Enron at SoCalBorder, 3,989MMBtu/day at $2.68/MMBtu

Line loss on the PG & E line for December 2001 is 2.20%. We have not sold any of the APEA gas (3,000MMBtu/day) at this time. However, we are looking into selling it and will notify you if we are successful.

Our Broadway 3 steam plant (65MW) is off line for scheduled maintenance. We will only have Broadway 2 online on a regular basis. Our actual usage will probably be about 3,500 to 4,000MMBtu per day, unless the ISO instructs us to put Broadway 1 online. Should Broadway 1 be called upon, our usage will go up to 6,500MMBtu/day.

If you have any questions, please contact me.

Thanks.

-Steve