Kim, Jan, Suzanne, and Tori-

As I said to Kim, I made an error in the total amount of gas we have
purchased for the month of October.  One contract (2500MMBtu/day) ended in
September.  Therefore the total nomination for month of October 2001 is
14,529MMBtu per day.  This odd number is made up of the sum of the
following:

1. 4,029MMBtu/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;
5. 500MMBtu/day March 2001 through Feb strip purchased @ $7.63;
6. 2,000MMBtu/day under two July - October separate fixed contracts of
1,000MMBtu/day each;
7. 2,000MMBtu/day under the latest July - Ocober fixed contract; and

As before, losses on the PG & E line are unchanged from September 2001 at
2.57%.  We have not sold any of the APEA gas (3,000MMBtu/day) at this time.

We are still waiting (and waiting, and waiting) for, and fully expect,
temperatures and thus generation to rise next month.  One steam unit
(Broadway 3) is on line and a second one, Broadway 2, is off and on during
the month.  During the last few days of September and the first week of
October, we will have our third steam unit Broadway 1 online for testing.
Usage should be up during this time.

If you have any questions, please contact me.

Thanks.

-Steve