Attached is an update of the CESG Outline to reflect issues discussed
during Tuesday's telephone conference. (Again, the principles outlined
do not necessarily reflect full consensus, but follow the general
direction of our discussion today.)  The second attachment is a draft
outline of the Integrated Portfolio Approach that John
Flory has been working on; it's referenced in the Rate Stabilization
section of our outline.

Follow up:

     (1) John Fielder has committed to get back on forward contracting
issues for our meeting on Friday.

    (2) It would also be beneficial in advance of Friday's meeting to
have a proposal from the large customer group on rate stabilization
alternatives.

We will begin Friday's 10:00 meeting with the Rate Stabilization issues
-- a place where we've failed to make progress.  Please note that Dan
Richard of PG&E has
been added to the email distribution, and PG&E may attend our meeting on
Friday.

Again, thanks to all of you for your constructive efforts.

 - CESG Working Draft 121200.doc
 - PX Proposed Integrated Portfolio Approach12-8-00