----- Forwarded by Jeff Dasovich/NA/Enron on 02/05/2001 10:19 AM -----

	"Daniel Douglass" <Douglass@ArterHadden.com>
	02/04/2001 06:18 PM
		 
		 To: <Barbara_Klemstine@apsc.com>, <Bob_Anderson@apses.com>, 
<Vicki_Sandler@apses.com>, <berry@apx.com>, <dcazalet@apx.com>, 
<billr@calpine.com>, <jackp@calpine.com>, <glwaas@calpx.com>, 
<Ken_Czarnecki@calpx.com>, <gavaughn@duke-energy.com>, 
<rjhickok@duke-energy.com>, <gtbl@dynegy.com>, <jmpa@dynegy.com>, 
<jdasovic@enron.com>, <susan_j_mara@enron.com>, <Tamara_Johnson@enron.com>, 
<curt.Hatton@gen.pge.com>, <foothill@lmi.net>, <camiessn@newwestenergy.com>, 
<jcgardin@newwestenergy.com>, <jsmollon@newwestenergy.com>, 
<rsnichol@newwestenergy.com>, <Curtis_L_Kebler@reliantenergy.com>, 
<rllamkin@seiworldwide.com>
		 cc: 
		 Subject: CPUC Prudency Standards



Commissioner Lynch and ALJ Cooke have each issued proposed decisions which  
adopt differing guidelines for bilateral power purchase contracts entered 
into  by the utilities.? 
?
If the utilities follow these guidelines, the Commission will forego  
reasonableness reviews of the contracts.? Attached is a  memorandum?which 
summarizes the filings made by interested parties  and?highlights the major 
elements of the two draft decisions.
?
This matter will be voted on at the February 8 Commission meeting.
?
Dan
 - 2-4-01 Memo re Draft Decisions.doc