Subject: "west region splitting in two".

Body: FYI - the west is wanting to split the region into two regions. Stephen, I know you have been working on mapping the P&Ls for reporting purpose, the attached file breaks down those two regions. We want to call then Southwest and Northwest. They will be headed by Phillip Allen and Mike Grigsby respectively. Please let me know if you have any questions. Thanks. PL

Subject: "Utilities (investor owned)".

Body: Mark and I met with Mark Haedicke regarding utilities and the need for a legal opinion from the utility counterparty. We have agreed with Mark as follows: 1. Our negotiations with investor owned utilities should be based upon our standard ISDA Schedule (ISDA Multicurrency Agreement) AND including the "Additional Termination Event". Neither party should be required to provide a legal opinion. 2. Investor owned utilites will be approved for online trading from a legal viewpoint. The extra "Additional Termination Event" paragraph is not currently included in the GTC's but COULD be incorporated if there is a revision to the online agreement. 3. Our position with respect to municipals/municipal owned utilities, federal/state/local owned utilities and cooperatives remains unchanged. We should still utilize and update the "municipal ISDA" form, and, require a legal opinion from the counterparty. In that regard, Susan Flynn has been working on an "omnibus" format for an electric co-op (Deseret Generation and Transmission Co-operative), an earlier version of which could be used as a template for a municipal omnibus confirmation.

Subject: "Update to Approved Jurisdictions - Credit Derivatives".

Body: Per my conversation with Edmund this morning, we are moving Germany to the approved list for trading credit derivatives. Below is the list, now updated to reflect this change. European jurisdictions which are are approved for trading credit derivatives: Finland, Germany, Norway, Sweden, Switzerland, and the U.K.. The European jurisdictions which are not approved to trade credit derivatives include: France, Gibraltar, Ireland, Italy, Scotland, Spain, and The Netherlands. For banks incorporated in a non-approved jurisdiction, it may be possible for them to trade out of a branch located in an approved jurisdiction (i.e. U.S. and U.K. branches). This would have to be determined on a case by case basis. Canada is also not an approved jurisdiction for credit derivatives. Please let me know if there are any changes to this list.

Subject: "Thursday Meeting w/Sempra".

Body:
Chris: As we discussed yesterday, Laird and I spoke and we think that the presentation is good to go for Thursday. We'll need to update the numbers for the offer we made to S.D. last week. You had mentioned that you might want to include a shaped product. You still considering it? Let us know and we can add it, and make any other changes you'd like to make at this end. My flight gets into S.D. at at 8:35 on southwest. Best,