All-

The total nomination for month of May 2001 is 10,526MMBtu per day.  This odd
number is made up of the sum of the following:

1. 4,026MMBtu/day purchase from Engage @ Malin (net, after PG&ENW  losses
4,135MMBtu/day @ Kingsgate);
2. 3,000MMBtu/day APEA gas;
3. 1,000MMBtu/day balance of year strip purchased on behalf of Azusa @
$7.71/MMBtu;
4. 2,000MMBtu/day under two separate fixed contracts of 1,000MMBtu/day each;
4. 500MMBtu/day March 2001 through Feb strip purchased @ $7.63;

Losses on the PG & E line have decreased again from April 2001 to 2.63%.  We
have not sold any of the APEA gas (3,000MMBtu/day)at this time.

We will still operate with only one steam unit (Broadway 3) on line for most
of the month.  Sometime about the fourth week of May, we will be bringing
one more steam unit on line.  At that time, I may need to increase our
nomination.  With the increasing temperatures and the possibility that the
ISO will begin paying generators, we expect our fuel usage to actually reach
and occasionally exceed our nomination in May.

If you have any questions, please contact me.

Thanks.

-Steve