I spoke with John Nimmons regarding the subject settlement discussions on 
Tuesday.  He shared with me his view on several matters.

1.  He's not sure what SCE is up to.  He believes they will not move off of 
their position of DG ownership however convoluted it may be (basically they 
want to keep the "option open" of customer-side DG ownership).  He also 
believes they most likely will not participate in further discussions.  He 
has a call into SCE to see if he can come to some understanding on where they 
stand.  (He also said they indicated they are most likely going to drop out 
of DPCA).

2.  John believes PG&E was responding to the Commission's position regrading 
DG ownership as outined in the Cmmisson's rule that states the Commission has 
not found any compelling reason to prevent ownership of DG bu UDC's.  He 
thinks they are not interested in customer-side DG as a business but only as 
an option to site mobile DG under emergency conditions.  He also believes 
that this issue is not a showstopper for them and they would most likely give 
it up (DG ownership) if others such as DPCA and Enron would support a PBR 
that gave them the right incentives.

3.  Next Monday's meeting will focus on the distribution only wheeling tariff 
issue (minutes of the last meeting and an agenda for Monday's meeting should 
be out today).  He thinks this will be the most contentious issue of all 
based on his reading of the utilities' testimony.  The utilities' postitions 
are that you can't separate distribution from transmission when dealing with 
the grid since their is much interdepence.  

I think we should continue to participate in these  meetings.  I'm planning 
on participating by phone.  I don't expect SCE to participate but if we 
change PGE's ownership position we would have 2 of the 3 utilities with us 
which strengthens our position.  It will also be interesting to see what the 
utilities have to say regarding distribution only tariffs.  ANy thoughts?