All-

The total nomination for month of June 2001 is 10,533MMBtu per day.  This
odd number is made up of the sum of the following:

1. 4,033MMBtu/day purchase from Engage @ Malin (net, after PG&ENW  losses
4,132MMBtu/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 May 2001 to 2.39%.  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 the
first half of the month.  We are planning to bring one more steam unit
online sometime about June 16th.  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