Hi, everyone. Sorry for the delay in responding to all the messages and
emails regarding the meetings sponsored by SRP. There were a few people who
were in Phoenix before the WTC disaster and we did meet on Wednesday to do
some brainstorming. This email is an attempt to share the discussions with
those of you who were not here.

The parties who met were SRP, APS, PD, SWG, SoCal and the ACC. Joel Greene,
Barbara Jost, Kelly Daly and Dave Huard were here as legal counsel and Greg
Lander was here as a consultant. There are no new proposals on the table. We
did discuss ways to get to a point where we might be able to talk settlement
and whether or not parties might be willing to turn back capacity. No
surprise that we keep coming back to "what do you use to allocate the
existing capacity". Greg is going to run some numbers for the EOC based on
different starting scenarios using the assumption that CD capacity will be
made available at some level. He will also be looking at the impact of
seasonalizing the EOC loads.

SRP will reschedule the meetings (or arrange a conference call) to discuss
settlement once we have Greg's analysis. I wouldn't expect anything before
the end of September unless it is a conference call.

Thanks to everyone for letting me know your status during the week. It was a
relief to know everyone was safe somewhere.


Diane McVicker
Principal Analyst
Salt River Project
602-236-4315