The State of New Mexico conducted a surprise air inspection of the TW Atoka 
No.3 C/S.  The agency found no non compliance issues or violoations during 
the inspection.

The second quarter Transwestern/SoCal PCB management committee meeting was 
held this week.  Transwestern's share of the PCB management and disposal 
activities on the SoCal system for the quarter was $125,950.00.

The State of New Mexico has issued the settlement penalty for the turbine 
replacement issue at the P-1 C/S.  The original amount levied against 
Transwestern in 1997  was $14,700.  After the Air Quality Bureau sat on this 
issue for more than 4 years without resolution, they reassessed the penalty 
to be $162,770.   A conference call will be set up to discuss Transwestern's 
next course of action.

The summary report for due diligence conducted in Portland Ore. was completed 
and submitted to Environmental Affairs in Houston.