I have further placed the Core / Non-core pricing (Core & non-core tab) per 
the CPUC's March 01 calculation.   I also began building an analysis of the 
core cost under a scenario where we attempt to examine the cost in the 
utility.   At this point, the following are not modeled or need refinement:

1. The load figures for PGE are suspect in the MOU.
2. T&D is not split by class.    Total CPUC revenue was used and I subtracted 
the total gen portion ($'s) derived from the MOU.   This was apportioned pro 
rata across load.   The residential customer should have higher T&D per unit 
consumed.   Perhaps Robert has some figures and can also validate the 
reasonableness of this total dollar plug figure.  
3. No value or loss was ascribed to the utility's open short or long position
4. No allocation of the value or loss on future DWR contracts was made.  
Based on the DWR forward price path they would have positive MTM value 
(remember their contracted price is below their projected spot price path).   
Using our or Henwood's curves these would be way out of the money in 02/03.

I am unfortunately out an this seminar I have to go to on Monday and 
Tuesday.  This is bad timing.

Jeff S. and Kortney can you further read the ancillary MOU materials and see 
if we can refine some of the assumptions?   This is a priority task. Also 
please check the mathematical integrity of our figures.    Also Robert, has 
there been any revised rate filings indicating different pricing for each of 
the categories in Loretta Lynch's March 01 attachment that we used to 
populate the spreadsheet?

Regards,


Michael