The PX confirmed receipt of EPMI's Notice of Termination as of 1:30 pm PST 
today.  Afterwards, we tried to establish the time that the PX declared that 
PG&E and Edison were in default so that we could, if necessary at a later 
time, show that EPMI had terminated before that default.  Unfortunately, the 
PX would not come out and say that a default had occurred, and as the day 
wound down, employees at the PX became more and more taciturn.  Brett made 
all of his calls on recorded lines, but I asked him to summarize the 
conversations in writing.  I thought everyone would be interested in seeing 
this.

Good work, Brett.

Steve
---------------------- Forwarded by Steve C Hall/PDX/ECT on 02/01/2001 05:46 
PM ---------------------------


D Brett Hunsucker
02/01/2001 05:36 PM
To: Steve C Hall/PDX/ECT@ECT
cc: Chris Stokley/HOU/ECT, Murray P O'Neil/HOU/ECT@ECT 

Subject: Conversation w/PX re: Default on 2/1/01

Steve, per your request.

Holli Kreb's desk; Presched1: 13:40;   Spoke to David Dan (626.537.3555) @ 
CalPX.  Asked him: 1) if PG&E and SCE had made pmt yet, 2) If anyone had 
defaulted  3)  Has the PX declared a default at this time.  David answer to 
these questions was he hadn't heard of anything, but he isn't in a position 
to know about these events.  He suggested I call Clark Cheng (x3243).  
Immediately called Clark and left message asking these three questions, and 
requested he call me ASAP.  

Donald Robinson's desk; Presched1; approx. b/t 14:00 and 14:30.  Called Clark 
Cheng @ CalPX.  
Q:  Did PX rec. PG&E and SCE pmts?   A:  Can't tell right now.  Back office 
is currently aggregating all of the data and trying to determine PX' position.
Q:  Has there been a default yet?  A:  No.  Too soon to tell.  PX doen's want 
to arbitrarily make that call until they've had a chance to contact the 
participant(s) and confirm an intent to default.
Q:  Has PX declared a default?  A:  No.  PX hasn't determined if they're 
dealing with a default.  So, PX has not made any such claim or notice to that 
effect at this time.
Q:  Once PX has had time to look at the data and determine if there has been 
a default, how will that be communicated to the market participants?   A:  PX 
plans on notifying the market via email.  PX anticipates an email will not go 
out until Friday, 2/2/01.

Hope this helps.  Let me know if you need anything else.

Regards,

Brett