I spoke again briefly with Hertzberg last night and had a lengthy discussion 
late last night with the guy from CSFB who's been providing Hertzberg with 
pro bono financial advice on the crisis.  Hertzberg is still hot on putting 
all of the utility past due on the noncore, though his consultant and I 
agreed that, politically, the number is more likely to end up somewhere south 
of 100% (if this thing gets legs).  Hertzberg asked for, and we provided 
today, a "fifth scenario," which shows how the numbers work out if 100% of 
core's share of utility past due is shifted to noncore.  It's attached.  Will 
report back with any further developments.

Note: Please discard the file that I sent you yesterday and replace it with 
this one.  That file accidentally had the same cents/kwh, noncore rate for 
both Edison and PG&E.  Edison's rate should be 12.98 cents/kwh NOT 12.21 
cents/kwh. It's the line that reads "Total cost to Noncore under CPUC's 
Recent Decision."

Best,
Jeff