Subject: "THE SMELLY SCAPEGOAT".

Body: A woman goes to her boyfriend's parents' house for dinner. This is to be her first time meeting the family and she is very nervous. They all sit down and begin eating a fine meal. The woman is beginning to feel a little discomfort, thanks to her nervousness and the broccoli casserole. The gas pains are almost making her eyes water. Left with no other choice, she decides to relieve herself a bit and lets out a dainty fart. It wasn't loud, but everyone at the table heard the poof. Before she even had a chance to be embarrassed, her boyfriend's father looked over at the dog that had been snoozing at the woman's feet and said in a rather stern voice, "Skippy!" The woman thought, "This is great!" and a big smile came across her face. A couple of minutes later, she was beginning to feel the pain again. This time, she didn't even hesitate. She let a much louder and longer fart rip. The father again looked and the dog and yelled, "Dammit Skippy!" Once again the woman smiled and thought "Yes!" A few minutes later the woman had to let another one rip. This time she didn't even think about it. She let rip a fart that rivaled a train whistle blowing. Once again, the father looked at the dog with disgust and yelled, "Dammit Skippy, get away from her before she craps all over you!"

Subject: "Elvis' party".

Body: Hi, Beek. I'm going through all of your e-mails to Jeff and am not able to find the information on Elvis' party Friday night. Someone had sent an attachment with the details, but I was unable to open it. Would you mind sending us the "final" agenda for the festivities this weekend? Jeff will arrive in Dallas +/- 4:00p Friday night and will be staying at the Crescent Court hotel. Thanks so much! SRS

Subject: "Infrastructure platform".

Body: Following is a very basic list of contracts we are currently expecting to perform to/serve as an ongoing concern in the estate. This is not nearly the detail you need, but it's a start: Gas Retail Gas Book (900+ contracts behind 18 LDC's) Enovate/Peoples Contracts FPL Gas Agreements Midland Cogen Keyspan (Lilco) Dominion Oklahoma City of Tallahassee Oxy Miscellaneous wholesale contracts TBD Power West Retail Book (140+ Contracts, All-Requirements, avg. 1000MW load) West Whlse Book (32 Contract groups identified, @ 1000MW load too) Nepool Retail East Wholesale(Currently 19 contracts) Miscellaneous wholesale contracts not yet identified Other There will be numerous other "physical" assets that will be a part of this including: generation development sites Bridgeline/LRC Napoleonville Storage Michigan Asset Mgmt. Sithe contracts East Coast Power contracts LNG contracts etc. Sally has a hard-copy with a little more detail. Several of us will be getting together either tomorrow or Sunday to put together as much of the infrastructure together as possible. We're going to need at least a draft of the backoffice people and boxes. We'd also like you to be a part of it if possible. We'll send out an email/voicemail to let everyone know when/where.

Subject: "Bryson Conversation".

Body:
Notes from Bryson conversation with Ken Lay: Urged us to "stay at the table". Says teams in Washington have all the demand curves from the utilities (from which to calculate offering prices). QF meeting starts at 7:00 pm tonight. says average cost of QFs today is 15?/kwh (amounts to 30% of supply). believes that cost can be brought down significantly if gas is purchased forward (perhaps by state entity). Says all utility generation (another 30%), mostly hydro and nuclear is cost based at 4?/kwh. If suppliers come in at 5.5? (or even 6? ), there is room under the 7? new commodity rate component to recover securitized costs (amounts to about 40% of SCE supply). Says good progress was made today. Believes they may have a framework this evening. Believes 5.5? is causing problem; maybe room to squeeze it up (perhaps as high as 6.0?). Thinks governor will slightly increase rates (or pay more at government facilities) if the parties can get 97% of the way to a solution. Thinks it's nearly a "done deal" that DWR (state entity) will buy power. Says securitization may be harder to get. Bryson's questions to Ken (and Ken's to us): Are we willing to forbear payment of amounts owed to us and continue to sell power to the utilities over the next several weeks. Ken realizes that Bryson may be overstating the progress made, and made no commitments to Bryson. Let's discuss at 10:30 call tomorrow.