Kristin -

I just wanted to drop you a line since my last email communication last week
to give you a status on our current activities for the Power Contract
Validation/Reconciliation Project.

1.	The Access Database that will be used for the validation and
reconciliation processes is 70% complete.  Our estimate is about 1.5-2 days
for completion.  The main issue slowing the development process is that we
are still trying to identify all of the required fields for a complete Power
contract.  After doing so, we will need to go back to the folks working with
Scott Mills to do another RPS data extraction.
2.	Toby Ellis' group has been working to gather paper contracts from
the Legal Dep't, CSC, and Origination so that we have all of the sources
necessary for validation and reconciliation.  As further contracts are
generated and/or located, they are copied and on a daily basis, we are to
meet with Scott Watson mid-afternoon for ongoing collection.
4.	Leveraging the experiences of the Gas Project, we are currently
documenting the processes and procedures that the staff personnel will use
to actually execute the validation and reconciliation procedures.  This
should ensure a smooth transition for them.  I will look for Chris',
Murray's, and your recommendations for these at some point by end of week.
5.	We are currently ramping up the staff involved with this project.
By week-end, we should have about 7-8 staff personnel on board.  Finding a
physical location for everyone will be difficult.  Murray O'Neil, Chris
Stokley, and one of the office managers in 3 Allen are aware of this need
and its urgency, and are working with me to arrange the space.

Please let me know if you have any questions about the above.  I can be
reached at any of the numbers/locations below.  Thanks.


> kpmg LLP  Information Risk Management
Joshua P. Galv?n
Senior Associate
700 Louisiana, Ste. 3200
Houston, Texas  77002
713/319-2082 (wrk)
713/256-8499 (mob)
jgalvan@kpmg.com



**********************************************************************
The information in this email is confidential and may be legally privileged.
It is intended solely for the addressee. Access to this email by anyone else
is unauthorized.

If you are not the intended recipient, any disclosure, copying, distribution
or any action taken or omitted to be taken in reliance on it, is prohibited
and may be unlawful. When addressed to our clients any opinions or advice
contained in this email are subject to the terms and conditions expressed in
the governing KPMG client engagement letter.
**********************************************************************