Here are general answers to the issues we discussed:
     1)Provider of Last resort: IP retains an obligation to be the provider of last resort(POLR) until the end of the transition period( which is the period during which stranded costs are recovered)....the transition period end 12/31/06. 2007 and beyond relative to POLR obligation is an unknown. How IP will fill this obligation beyond 2004, when it's "clawback" contracts to IP's generation and Clinton expire is unknown...Dynegy should be able to answer. Based on my review and understanding of the statute(restructuring), Dynegy has little chance of a material risk developing relative to the POLR obligation. 2) Stranded cost recovery: Competition Transition Charges or stranded  costs are recoverable by IP through 12/31/06( Dynegy does have an ROE cap through 2004...it is equal to the treasury bond yield plus 850 basis points). The level of transition charges varies periodically, as the market price calculation varies( I can explain this later, but it is not particularly important). Bottom line: IP has almost zero risk of achieving less than 100% recovery of stranded costs.3) Distribution and Transmission  rate risk: I won't go into any detail, but there is less risk of achieving less than  a compensatory  on T&D assets in Illinois than in any other state in the country. 4) California refund amount for Dynegy: Intuitively and based on what I know, $530 million exposure should be West Coast Power's max exposure, so roughly $265 million for Dynegy...but, I wouldn't take this to the bank unless I fully understood the joint venture's documentation. 5)DWR renegotiation risk: Coming shortly under separate e-mail will be analysis of DWR contracts- note that Dynegy contracts(2) are $2.2 billion in the money as of time of analysis....Don't know how to allocate between Dynegy and NRG...would have to better understand contractual relationships.
     Please feel free to call me at 281-831-3749 if you need anything else