CDWR is proposing to all potential suppliers the following security package 
for new PPA's:

1) Irrevocable PUC Order / Agreement that "locks in the revenue stream" for 
CDWR to cover the PPA costs.

2) PPA covenant that the power supplier has payment priority over any debt, 
including the contemplated debt issue
  - the concept is that the supply is the operating cost and any debt would 
be subordinate

3) PPA Covenant that their is a uniform package to all suppliers; no more 
favorable terms or priority to ayone, no L/C, etc.


Subject to definitive language, CDWR is trying to get people to buy into this 
general plan.  What do people think?  Please try to shoot holes in this.  
Please forward to the appropriate legal, regulatory and credit folks to air 
this out.

Thanks,

Chris