Subject: "19 Month Cash Budget - Due December 18th".

Body: Following up on today's meetings, it is critical that we have your revised 19-month Cash Budget as early in the day on Tuesday, December 18th as possible. (This format file has been revised to correct some formulas on the first page.) Revised/Detailed 19 Month Cash Budget - Due December 18th ASAP As with the version you submitted earlier this week, revenues, expenses and other items need to be presented on a "cash basis". WE NEED A SUBMISSION FOR EACH BUSINESS UNIT EVEN IF THERE IS NO PLANNED CASH MOVEMENT WITH CORP. With the exception of payroll, benefits and related items, there should be no allocations in your expense figures. Networks is working on an overall budget for the organization, and Corporate will budget for rent and insurance expenses (allocations back to the business units will be done at a later date). If you have not done so already, please confirm with Corporate HR your current payroll and headcount levels and make any adjustments from that level going forward. For those business units that have some entities in bankruptcy as of 12/12/01, we will need one file that consolidates all those entities in bankruptcy, and one file that consolidates those that are not. If as part of the initial submission you had broken out your business units into different segments, please do so for this plan as well. Where it is requested or noted (*) please provide detailed back-up information on the appropriate sheets. Please do not add any rows or columns to the first sheet labeled "format" or "O&M_Detail". We are hopeful that most of the additional information requested is readily available. If you have any questions please call myself (3-3887) or Mike Deville (5-7852)

Subject: "Requested pressure cut at Citizens Griffith TW Interconnect".

Body: Citizens had concerns about the amount of noise and vibration at our Citizens Plant Station and has recently had an expert on this subject visit the site and take measurements. The preliminary report indicates that the current configuration could potentially fail at full load conditions with a inlet pressure exceeding 740 psig. Since Citizens does not want to limit the capacity of the power-plant, we are asking that your delivery pressure be temporarily reduced to 700 psig. I have attempted to document the different operation modes that we have observed your station operating under along with any back-ground information that I was able to document. As discussed, in the design phase of this interconnect, I was informed that batching would only occur under low flow conditions, and do not understand the benefit of batching in the manner that was done earlier this year. Per our customers request (Griffith Energy) Citizens installed equipment capable of measuring down to extremely low flow rates that include three measurement runs. A 10" Instrument Ultrasonic, a 4" Invensys Turbine meter, and a 2" Instrumet Rotary meter. Although I questioned this requirement at the time, the low flow condition occurs so rarely, it is inconsequential. I have analyzed our log files for the month of November (11/1/01-12/6/01) and found that the only time the smaller runs operate is momentarily as the power plant starts up. The following volumes are accumulated totals per run for this time period. Run Size TW Flow (Mcf) Percent of Flow EPNG Flow (Mcf) Percent of Flow 2" 107.9 0.0089% 0.2 0.0018% 4" 1,280.8 0.1059% 2.1 0.0153% 10" 1,208,076.9 99.8852% 13,714.4 99.9829% My point is that in the event that you do not feel comfortable in setting your actuated valve immediately downstream of your flow control valve to take Citizens' requested pressure cut, consider temporarily using the flow control valve as pressure control. The month of November included considerable power-plant testing, and therefore the above numbers are higher that during commercial operation. When TW found it's in a difficult situation in regards to finding a solution to measuring a low flow (which appears to be erroneous information), Citizens worked with you in good faith. All we are asking is the same in return. <<Griffith-TW-Chrono.xls>> - Griffith-TW-Chrono.xls

Subject: "Edison Advice Letter Summary".

Body: Attached is a summary of several recent Edison advice letters. Three of them may be of interest, dealing with demand reduction and self-generation, SCE service to Calpine's Pastoria plant in PG&E's service territory and changes to SCE's affiliate compliance program. Dan

Subject: "Devon SFS Operating".

Body:
Attached for your review are the following: 1. Enfolio Master Firm Purchase/Sale Agreement 2. Transaction Agreement (Package 1) to Master Firm 3. Transaction Agreement (Package 2) to Master Firm 4. Enfolio Master Spot Purchase/Sale Agreement 4. Enfolio Spot Confirmation - Master Spot Purchase/Sale Agreement Governs Please review and call with any questions.