President Lynch has today released the attached ACR concerning market valuation of the utilities retained assets.  As you may know, AB 1890 originally required that for those generation-related assets that the Commission determines to be transition costs and that are subject to valuation, "the valuation used for the calculation of the uneconomic portion of the net book value shall be determined not later than December 31, 2001, and shall be based on appraisal, sale, or other divestiture."

Lynch states that this requirement was changed by AB 6X and that, "I intend to recommend to my colleagues that the requirement to value generation-assets subject to valuation by December 31, 2001 has been superseded by AB 6X.  Parties shall file and serve comments addressing this issue by January 15, 2002.  Reply comments shall be filed and served by January 25, 2002."

Dan

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