Subject: "EP San Juan phys".

Body: Can we create a San Juan phys for Oct bidweek? What did we decide with this product - swing only? If we do, I would like to link it to the basis plus nymex, or to the fixed price gas daily (fixed price gas daily will be rolled out during bidweek this month because of our risk in gd basis going forward). I want to roll the Inside Ferc phys points out during bidweek 7-4, as defined by Inside Ferc, last trade is mid. The NGI index points will be out 7 to 4 during bidweek, as defined by NGI. We will plan on sending the data to both index publications. Time open to market, time of actual trade, counterparty, price, etc. This will be considered their last opportunity to be accurate or we will decline to participate until their numbers are audited. Thanks,

Subject: "EPMI-Avista Futures Contract".

Body: After a little more digging, I've found that the deal NYMEX was referring to is the same one we dealt with a month ago. I spoke with Tracy Green, one of our contacts at Avista, and she had been dealing with the same issue all day. Apparently, when Avista first incorrectly reported that we hadn't made a payment, it set off a domino effect of doubts that seems to still be falling. So NYMEX called EDF Mann, our futures clearing broker, today to assure that payment would be made today.

Subject: "Industry Group Likes Our Portfolio Approach".

Body: Just met with the industry group trying to come up with a solution for California. The group liked our portfolio approach. In sum: A portfolio approach is the right long-term solution. In the short run, our illustrative portfolios show that the utilities ought to immediately fill a modest portion of their requirements via fixed-price, long term contracts, and those contracts should be found reasonable, up front, so long as the utility uses a competitive auction. To stimulate discussion we proposed that the utility fill 5% of its net short position with 5-year, fixed-price contracts and 5% from 10-year, fixed-price contracts. Everyone on the call liked the proposal. After some discussion about whether 5%-5% was the right one, Edison agreed to come to Friday's meeting with its proposal for price/term/quantity that it ought to contract for immediately. (Edison may want the number to be higher, and the baskets to be different.) Anything can happen between now and Friday, but thus far looks positive. Thanks to everyone for the help in getting the proposal together, Steve Swain in particular. (Steve: We may get asked to run a few more illustrative portfolios for the group.) I'll report back on what happens at the meeting on Friday. If there are any questions, etc., just let me know. Best,

Subject: "Portable Generator".

Body:
BL, Have you experienced any blackouts yet? I think you'll see a lot this summer. What does everyone think about the situation? Do they think it's a threat or not? I think the state is in for a horrific summer - I hope it doesn't turn out that way, but it'll be incredibly difficult to avoid. Hope everything's going well with work and with the family. When's the next time you'll be in Dallas? Let me know. KR