Jay,

To reconfirm my conversation yesterday with Reid Grossman, a consultant hired 
by the referenced counterparty to negotiate their trading documents with us:

1.  PUD #1 would also like to get gas and power trading agreements in place 
with us.  Per my conversation with Dave Fuller yesterday, the physical 
trading agreements are of a higher priority than the financial trading 
agreement.
2.  They would like to get a draft of a collateral annex from us.  Their 
suggested trading threshold for themselves was in the $3.5-5mm range.
3.  They would already be in default of the MAC's you sent me in the credit 
worksheet dated 1/25/01.  We need to revisit the MACs.
4.  They think a 3rd party debt threshold of $1mm is too low for them, they 
suggested a threshold of $10mm.
5.  The agreement provides for annual and quarterly financial statements.  I 
don't think they have quarterly.  You need talk to them about what they 
can/will provide.

If you would like to talk to Reid directly, his ph no. is 509/252-5096.

By the way, Reid is an old buddy of Bill Bradford from Reid's Avista/PG&E 
days, and Reid sends his regards to Bill.  If you see Bill pass this message 
on...