Subject: "[smu-betas] It's not braggin' if...".

Body: Beta Brothers: OK, I'm doing a little bragging here. But check out this attachment -- review of my new book in The Daily Oklahoman. By the way, the world premiere party is August 24 here in OKC. More details to follow. Be here or pledge Fiji.

Subject: "Reply to e-mail".

Body: Marc, Here's a draft reply to your latest e-mail, which I would send to all those copied on your note to me. What do you think? Marc, We have sought, and paid for, advice from Indian counsel concerning commodity derivative transactions with Indian counterparites. We have had that advice updated and confirmed in connection with this proposed transaction. The result of that advice is that we will require an opinion from DPC's outside counsel that the proposed transaction is enforceable against DPC before the transaction can proceed. While I have no legal objection to sending a form of L/C that would be acceptable to us, it doesn't make much sense to go through the exercise if DPC will not be providing the necessary opinions. Mark

Subject: "DRAFT Slides for Sempra Meeting".

Body: Attached for your review is a rough cut at slides we're preparing for the meeting with Sempra next Thursday. Thoughts and comments are appreciated. Please disregard korny title.

Subject: "Sun Devil".

Body:
In preparation to present offers to APS, Duke, and Panda, the following tasks need to be completed- James, Teb, Blair to calculate rates for $911 MM facilities according to the following guidelines- - Rate matrix based on contract terms of 15/20/25/30 years - Project depreciation consistent with contract term - Segmented rates (max rate) - Levelized - Volume allocations: SJ-780k/d; Cal Border-330k/d; Phoenix;500k/d - Incremental O&M costs charged to new shippers prior to next rate case; O&M costs re-allocated based on expected outcome following next rate case. - Incremental fuel retention charged to new shippers prior to next rate case; fuel costs re-allocated based on expected outcome following next rate case. - Determine rate sensitivity (for 15/20/25/30 year terms) assuming +/- $25 MM change in cost of new facilities - Determine rate sensitivity (for 15/20/25/30 year terms) assuming +/- $2 MM change in O+M re-allocated based on expected outcome following next rate case. Kevin to provide capital structure and cost of debt, cost of equity (in light of recent circumstances) in support of new rate analyses. Eric, Kevin, Lorraine and Michelle to outline commercial transaction structures for APS, Duke, and Panda. Eric to schedule meeting to discuss rate indexation. Eric to schedule next team meeting asap (target=Nov 1).