This is the content of an email: Holli: We need to talk about status. I spoke yesterday with three EWEB lawyers and Dick Varner. I have to comment back on the Schedule to the master agreement. EWEB has not yet reviewed the Credit Support Annex and needs to submit their proposed legal opinion. EWEB is reserving discussion of the confirmations pending resolution of the master agreement. Most important, however, is the EWEB legal opinion which will be limited by the capacity of EWEB's traders to enter into financial trades at any given point in time. EWEB is insisting that we assume the obligation of knowing whether an EWEB trader is authorized to act and how that EWEB trader is authorized to act under EWEB's trading policy because, under Oregon law (and the law of all states), financial trades executed by unauthorized persons (employed by governmental entities) are completely void. Your two trades (which began as physical deals and were transformed into financial deals) were authorized by EWEB's recent board resolution. However, you cannot rely fully on this resolution for future trades. Before you ever trade with EWEB again, you will not be able to rely upon your past relationship with an EWEB trader. You will first have to conduct some due diligence with respect to the EWEB trader and the EWEB trading policy. ENA has never agreed to this type of arrangement. Let's schedule a time to discuss the agreement further. Thanks. Sara

Subject: EWEB

This is the content of an email: The total mark to market value for US Gas EOL deals as of 08/31/2000 was: $332,200,027 Physical deals totalled $(5,441,280). Financial deals totalled $337,641,307. Let me know if you have any questions. Thanks,

Subject: US Gas EOL Market Value

This is the content of an email: FYI. Recently, Chris Calger has asked me to set up a meeting with Sempra. ENA's seeking deals with the two big CA gas IOUs (PG&E and SoCalGas) that would give ENA access to their assets. In short, ENA wants to offer a complete outsource deal for the IOUs' core gas load (i.e., rez and small commercial customers). ENA would take responsibility for providing service for delivery at the city gate and in return would manage all of core's assets (upstream of the city gate). We're meeting with Sempra's "Chief Regulatory Office" (Bill Reed) and Sempra's CFO next Thursday to discuss. Given the fact that Sempra's primarily focused on electricity, the plan is to lead off the meeting with a couple of electricity solutions as a bridge to the gas offer. For electricity, the plan has two pieces: 1) a commodity offer that beats the 6.5 cent cap (i.e., nothing fancy) and 2) "Deal Bench" services with the intent of establishing a procurement mechanism for SDG&E that the California PUC could pre-approve (thereby eliminating some of the immense regulatory risk SDG&E now faces). Wanted to run this by folks to gauge reactions. We'll distribute the slides we're putting together as soon as they're drafted--hopefully by COB Friday.

Subject: Meeting w/Sempra

This is the content of an email: I'm headed to Virginia tonight, and should be back Friday am. Could we push back the conference call to the afternoon? Heather will have the same travel schedule. Thanks,
Subject: Conference call Friday