Subject: "EnergyOne".

Body: Brant, EnergyOne has responded to the requested changes. They agree to the revision of the MAC language but threw in a money wrench by adding a warm and fuzzy triggering event if a party refused to provide security within 48 hours of a reasonable request therefore. No standard is provided as to the reason for the request. They also deleted the original Collateral Threshold language which was in their first draft. Please respond to these matters to me and to Sylvia Pollan.

Subject: "FERC refund investigation into Pacific Northwest spot power sales".

Body: Attached is a memo outlining key aspects of the recommendation issued by the assigned Administrative Law Judge in the above-referenced case. The recommendation is now before the full Commission, which we expect will rule by mid-October. Please call me if you have any questions.

Subject: "Presentation for K. Lay to CEOs re: Proposal K. Lay's Been Making in California".

Body: FYI. Ken Lay asked to have the pitch that he's been making California be quickly put into a few power point slides for use in meetings he's having this week at the gathering of the Business Council (back East) with a group of California CEOs (e.g., Sun, Chevron, Amgen, Bechtel and others). This is the version that we gave to Lay's office; he may have modified it. Will check with Rosalee to get the final and distribute that version if changes were made. Best,

Subject: "California Treasurers Calls on Lynch to Immediately Set DA Suspension Date Back to July 1".

Body:
The state treasurer sent a letter this afternoon to Loretta Lynch. The treasurer claims in the letter that, by extending DA through Sept. 20th, the PUC could have shifted more than $8 billion to small customers. He urges Lynch to immediately roll back the date to July 1. We have started working with large customers to refute the letter. If you would like a copy of the letter, please send your fax number to Joseph Alamo. Best,