Chris

Set up a time to go through Pastoria with me.

 -----Original Message-----
From: 	Calger, Christopher  
Sent:	Friday, February 23, 2001 5:48 PM
To:	Lavorato, John
Subject:	CDWR

Today we entered into an agreement with CDWR.  A condition of any new deal was payment for power deliveries already made.  We received $500M earlier this week and $10.9MM today (this $10.9MM was not technically due until March).  Based on those payments, we executed a confirm and EEI with the following terms:

EPMI Sells
CDWR Buys
200MW
Peak
NP-15 
Feb 24-Mar 31
Price: $265 
Payment: Every 7 Days starting Mar 2

CDWR gave EPMI the option (exercisable up to Mar 28, 2001) to extend this deal through March 30, 2006 at a price of $127 (price is retroactive to Feb 23,2001 so if we exercise, we credit CDWR for the difference).   This option enables us to try to work out the credit issues with CDWR.   

This is a very valuable contract if we can get comfortable with the credit so I will continue to work on it.  I will also pursue discussions with them with respect to Pastoria, but I believe we may want to make a decision with Calpine in early March (which might be before we can ink a creditworthy deal with DWR).

Chris