Subject: "Air Permit Delay, Red Rock Expansion".

Body: Yesterday evening I phoned both the state of Arizona ( agency for stations 1 and 2) and Region 9 EPA ( agency for stations 3 and 4) concerning the status of when the air permits would be issued by both agencies for the Redrock expansion. I was surprised to find out that both agencies stated a 2-4 month delay prior to issuance. They cited back log of other permits, public comment periods, and workload as being the main reasons. I am particularily disappointed because there were pre meetings with both agencies identifying what was to be included in each application package, and even after the applications were submitted in March of this year, each agency came back and asked for different information that from what was discussed at each meeting. I have a call into the state of Arizona ( construction is to begin at Station 2 and they have jurisdiction for this station) to see if we can initiate some construction activities such as laying pipe and building foundations prior to receiving the permit. I have been given these types of approvals from other agencies in the past, but these types of approvals are extremely narrow and restrictive. If this flys I am sure that they will require us to make sure the turbine is not brought on site until the permit has been issued. I know this will require written approval from the agency, but this may allow us to proceed on schedule and avoid any delays. Ill keep you apprised of this issue.

Subject: "Order Instituting Rulemaking to Establish Policies and Cost Recovery Mechanisms for Generation Procurement".

Body: On October 29, 2001, the commission issues an order instituting a rulemaking to establish ratemaking mechanisms to enable SCE, PG&E and SDG&E to resume purchasing electric energy, capacity ,ancillary services and related hedging instrument to full their obligation to serve their customers once DWR's authority to purchase on their behalf ends (December 31, 2001). At that point, the UDCs, not DWR, will have to pick up anything not covered by retained generation and the DWR contracts. The Commission will also address proposals on how renewable resources should be included in the mix of generation serving the state. The OIR will have a significant impact on procurement practices in the state on a going forward basis. The ruling states that if you are interested in being on the service list for this proceeding, a letter must be sent to the docket office stating that fact within 15 days (by next Monday). Bottom line is do you want me to continue to monitor (and perhaps get active) in this proceeding. Please let me know by the end of the week so that I can send in the required letter. Jeanne Bennett

Subject: "Turbopark".

Body: Guess what? The closing party isn't until Feb. 8. I had the wrong week! Glad I didn't show up on the wrong day.... BEAUTIFUL weather. Might want to sit outside and have a little cocktail (or equivalent) tonight. I had Mexican food for lunch, so popcorn for dinner! Love,

Subject: "W2".

Body:
Ms. Gonzalez, For some strange reason I recieved your W2 in the mail yesterday. I am located at 3148C or call me at 3x7277 and I wil arrange to get it to you. Peter Keavey