Subject: "Alberta prepay".

Body: Bill: We are proposing the following compromise language to the bank regarding "Transfer": Party A may transfer its rights and obligations under this Agreement, in whole but not in part, to any Affiliate that is a resident for income tax purposes of the United States or Canada....... We typically don't resrict the jurisdiction of our Affiliates. Is this O.K. with you?

Subject: "rebuttal testimony schedule clarification".

Body: The September 26, 2001 order had established December 10, 2001 as the date for "Simultaneous rebuttal testimony on November 6, 2001 evidentiary presentations." On November 6, 2001 several parties had filed responsive testimony on issues relating to other sources of cost recovery, including NOx emissions and startup costs The November 23, 2001 order said these issues will be addressed at the February hearing on issues 2 and 3. This combination left Staff uncertain as to when rebuttal testimony on these issues is to be filed. We called Bryan Clark, Judge Birchman's new law clerk, and asked when we are to file rebuttal testimony. He checked with Judge Birchman, and said we are to file all rebuttal testimony on these issues on February 6, 2002.

Subject: "New Congressional Report on California".

Body: Ray Alvarez brought to my attention today a news item indicating that the Congressional Budget Office released a report earlier this week entitled "Causes and Lessons of the California Electricity Crisis." The 30+ page report is available on the home page of the CBO's web site at www.cbo.gov. I have quickly read through the summary and it is largely favorable. For example, the summary says: "Much of the blame for California's electricity crisis attaches to the state's restructuring plan -- but not to its objective, electricity deregulation. (...) But deregulation itself did not fail; rather, it was never achieved."

Subject: "Summary of Core/Noncore Analysis".

Body:
Rosalee: Could you please print out the following two documents for Mr. Lay? One is an excel sheet showing the summary of the results of our analyis of the core/noncore market structure that Mr. Lay has been discussing with leaders in California. The other is a word document explaining the summary tables contents. If you have any questions, just let me know. Maureen, can you print out for Steve, too? Thanks very much for your help. Best,