See the attached short memo from Seabron before our conference call 
tomorrow.  Seabron has now read the motions/settlement proposals made last 
week by the CPUC, the Cal ISO CEO, PG&E SCE and TURN, and SDG&E.  Out of all 
the pleadings, he concludes that only SDG&E raises a new economics issue that 
we would need to rebut: SDG&E challenges our assertion that requiring 
utilities to be in the forward market will solve the problem in the 
California market.   SDG&E also makes a number of policy recommendations that 
we have not yet addressed in the context of the FERC's investigation that we 
must oppose because the traders oppose them.

Ron Carroll is currently drafting a FERC filing/letter telling FERC that we 
will not be answering these pleadings within the typical 15 days for filings 
answers but will instead be addressing these filings in the context of the 
FERC's November 1 order and assume that by doing so we are not waiving any 
rights.  That way we can file one pleading rather than many. 

 - 00-10-26 SA Memo on SDG&E response.doc