Notes from Bryson conversation with Ken Lay:

Urged us to "stay at the table".

Says teams in Washington have all the demand curves from the utilities (from 
which to calculate offering prices).

QF meeting starts at 7:00 pm tonight.
says average cost of QFs today is 15?/kwh (amounts to 30% of supply).
believes that cost can be brought down significantly if gas is purchased 
forward (perhaps by state entity).

Says all utility generation (another 30%), mostly hydro and nuclear is cost 
based at  4?/kwh.

If suppliers come in at 5.5? (or even 6?), there is room under the 7? new 
commodity rate component to recover securitized costs (amounts to about 40% 
of SCE supply).

Says good progress was made today.  Believes they may have a framework this 
evening.

Believes 5.5? is causing problem; maybe room to squeeze it up (perhaps as 
high as 6.0?).

Thinks governor will slightly increase rates (or pay more at government 
facilities) if the parties can get 97% of the way to a solution.

Thinks it's nearly a "done deal" that DWR (state entity) will buy power.

Says securitization may be harder to get.

Bryson's questions to Ken (and Ken's to us):  Are we willing to forbear 
payment of amounts owed to us and continue to sell power to the utilities 
over the next several weeks.  Ken realizes that Bryson may be overstating the 
progress made, and made no commitments to Bryson.

Let's discuss at 10:30 call tomorrow.