Eric,
As we discussed, with ENSR's assistance I have developed a projected timeline 
for developing the FERC required F-1 Exhibit (12 part Resource Reports to 
satisfy the NEPA requirement) in sufficient detail to meet the FERC filing 
requirements and expedite the processing of the environmental portion of the 
application.  The aggressive timeline assumes that the expedited FERC 
"Collaborative Approach" will be implemented throughout the processing of the 
application.  Even with the "Collaborative Approach" and all of the upfront 
work done with the environmental community to streamline the processing, the 
schedule is very, very optimistic and assumes that all conflicting issues 
will be resolved quickly and the processing continue.  

I have requested that Jon Schmidt (ENSR) begin working on a detailed cost 
estimate, by quarters in two phases.  The first part of the estimate would be 
to project the environmental cost, by quarters of preparing the 12 Resource 
Reports (including the necessary field work) that would get Sun Devil to an 
FERC filing in the first quarter of 2002 that would not be rejected.  The 
second component of the cost estimate would be to complete the field work and 
permitting phases during the processing of the application.  This includes 
participating in FERC scoping meetings and agency meetings as required.  This 
would include assisting the third party environmental contractor in working 
on the EIS to expedite the writing as needed.  It would also include 
mitigation packages to satisfy agency requirements.  The third and final 
component would be to budget for a Third Party Environmental Contractor to 
write the EIS document during the time that the field work is being developed 
and to process the same with the FERC Staff.  Once we get the "White Paper" 
Fatal Flaw analysis that ENSR is preparing for this project we will have 
enough information along with the budget to get us to the FERC filing to make 
some quantifiable decisions on moving forward when comparing those to the 
commercial advantages that you are developing.

If you have any questions, please give me a call.  John Shafer