Subject: "DG Impediments".

Body: Jim: Here's the DG stuff from the Hertzberg letter ***************************************************************************= 8 Key Barriers to the Development of Distributed Generation and Proposals to= =20 Remove the Barriers Barrier: Excessive and Unnecessary Utility Stand-by Charges Solution The executive orders issued by the Governor on February 14th took a step in= =20 the right direction, but don=01,t go nearly far enough. Utility stand-by= =20 charges have always been designed by the utilities to protect their monopol= y=20 position, extract monopoly prices from customers, or both. They must be=20 eliminated for all distributed generation applications. There is no reason= =20 to limit the elimination of these charges to generation facilities that are= =20 less than 1MW. These limits will only lengthen unnecessarily the time it= =20 takes for California to close the significant gap between supply and demand= =20 and reduce the risk of black outs this summer.=20 The provisions of SB27X eliminating stand-by charges were stripped from the= =20 bill. This will likely thwart any attempts to encourage the near-term=20 development of distributed generation and reduce the severe supply-demand= =20 imbalance in California. The language eliminating stand-by charges should be re-inserted into SB27X= =20 and modified to remove all caps on plant size.=20 =20 Barrier: Excessive delays and costs related to interconnecting facilities= =20 with investor-owned and municipal utilities Solution: =20 The Governor=01,s executive order regarding interconnection is a step in th= e=20 right direction=01*D-D-26-01 requires utilities to complete interconnection= =20 studies within 7 days. California should ensure that this requirement=20 applies to all generation facilities, including distributed generation. In= =20 addition, the financial conflicts the utilities face when interconnecting= =20 generation facilities are simply too powerful to overcome through executive= =20 orders or other regulations. =20 To the greatest extent possible, California should shift control over=20 interconnection away from the utility and place that control with the=20 California ISO. This could be accomplished through amendments to SB 27X. Barrier: Permitting and Air Quality Issues Developers of distributed (i.e., =01&on-site=018) generation that is 50 MWs= or=20 greater must receive certification from the California Energy Commission an= d=20 therefore face all of the impediments to development that large-scale=20 generation faces. =20 Solution:=20 California should ensure that the executive orders (D-22-01 thru D-26-01)= =20 issued by the Governor to expedite plant siting and maximize plant output= =20 apply equally to smaller scale, =01&distributed generation=018 facilities. = In=20 addition, distributed generation that is less than 50 MWs continues to face= =20 local opposition. The State should ensure that local, parochial interests= =20 cannot block otherwise beneficial distributed generation projects. =20 These objectives could be accomplished through amendments to SB27X.

Subject: "EOL Code Update".

Body: John, I am performing code updates to the stand-alone EOL workstation WNAEOL-48101 this evening and wanted to check with you to see at which point it would be convenient for you. I assume after the business day would be acceptable and my intent is to start near 6:00 p.m. or, at any time you decide is convenient for you. I called a short while ago and will do so again before proceeding, but if you receive this email and need to contact me, you may reach me at extension 5-7004. Thanks. Chris Jeska Terminal Server Operations.

Subject: "Asset management".

Body: Hi Chris, Happy New Year. Hope all is going well with you. We miss you! I heard a rumor that the UI deal had an asset management aspect to it. The guys around here are kicking around some different asset management ideas, so I'm trying to get my hands on any docs which might give some insight into some different approaches. Do you have anything you can email me? Thanks,

Subject: "Restructuring Today - 6/23".

Body:
Mark, Please, tale a look at the attached newsletter. An interesting story on gaming Cal PX. Let me know if you have problems opening the document. Vince