Q: Met early this morning with Jack Steward (pres. of CMA) and Keith McCrea (lawyer for CMA) to follow up on the meeting that Steve and I had with them regarding the proposal Ken Lay was pushing last week: They like taking Tx out of the MOU, they like getting DWR out of the power purchase business, and they think that Edison's MOU needs a little haircut. McCrea pushed back initially on core/noncore ("why should it be mandatory to go the market? "), but after much discussion they agreed that our idea for core/noncore has a lot of merit. Our idea is that 1) the core/noncore would take effect in 18-24 months, when the markets settle and prices come down, 2) everyone (core and noncore) should pay for DWR's "past" purchases, since everyone consumed it, 3) core customers should take IOU generation, QFs and DWR contracts (which eliminates the core's "net short" position, and 4) noncore would go to market and would not have to pay for any of DWR's "going forward costs" (since core gets them, in exchange for getting all the low-cost IOU generation) I told them we are still crunching the numbers to see what the rate effects would be and would share it with them when we're done. While they are supportive of this approach and agreed that it would be useful to continue to flesh it out, they are not convinced that it will get the necessary support to get passed. They are also withholding final judgment until they see all the numbers, i.e., we've still got some work to do. They are very cynical about anything getting solved in California, and are extremely upset about the PUC's proposed rate decisions released by the judge and Loretta Lynch. They place very little trust in the Governor or the Legislature. Interestingly, the rate increase decisions, coupled with calls in Sacramento for an immediate move to core/noncore, makes our proposal very attractive to CMA. Nonetheless, they said that they will continue to engage and are willing to commit to continue meet to try to get California's mess resolved.
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A: Follow-up Meeting this Morning w/CMA

Q: Paul Flack asked me to ask each of you if you have received any materials relating to lawsuits about which you have not yet informed us. Paul's question arises from our learning about a motion that was filed in federal court in Texarkana in a case styled Davis, et al. v. Enron, et al., in which you were named as defendants, and about which we have received no prior notice. Thank you for your assistance.
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A: "New" Lawsuits

Q: So sorry that you and Kristi are having to go through all of this. No more stupid emails from me. Just know how much I love the four of youl MOM
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A: Kirk

Q: Make sure all price and volatility curves have been final posted in Curve Manager. Contact Min Zheng (or whomever will be handling this for the estate) to run the script which writes the curves into the m:\power2\region Excel files (these are used by Structuring, EES and East Price if we were to run it again) Calculate "East Bankruptcy Calc xx/xx/xx vs yy/yy/yy" - Run it on 'Official Adhoc Full Book' and do not officialize upon completion - Use '/prod/egs-home/ermt/bin/pwrcalc_slr.new' as your executable - email Debbie Brackett, Stephanie McGinnis and John Powell daily with the post-id for the calc Calculate "Official East Non-Terminated Transactions xx/xx/xx vs yy/yy/yy" - Run it on 'Official Adhoc Full Book' and officialize upon completion - Use 'default' as your executable To run the rolls for Terminated and Non-Terminated books: - run DPR Automation (m:\common\power\estate\2002\0102\NEW) on both the East and EastBank portfolios separately - for the EAST-PERF book you'll need to also run DPR Automation on PCS/PID in the morning to pull in the liquidations. - link EAST-PERF, EAST-NPERF and EPMI-EAST-BANK into the Consolidated Report file - each day, copy the 'NEW' folder into the 'DATE SPECIFIC' folder and run the 'PRIOR-ESTATE' file located in the 'NEW' folder to run each roll's daily change macro
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A:
Daily Risk Procedures