Subject: CRC NEW PROCEDURE
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Tue, 24 Oct 2000 08:18:00 -0700 (PDT)

The following procedure will be effective tomorrow, October 25th:

Bill Miller will call with a volume that he wants to bid into California for 
a given day. 
We can either:

1.  Give Bill a fixed price that is in excess of his floor price.     We can 
either sell this energy to Dynegy, etc. in an SC trade (locking in a 
guaranteed spread) , or take the expost risk ourselves, granting Bill the 
fixed price negotiated above.

2.  Enter into Profit sharing.   Use Bill's price as a basis and split 50-50 
all profits above the basis, much like Redding and El Paso.    We can use the 
Redding spreadsheet as a template for this transaction.    

3.  Advise Bill to take energy to PX Day of with the profit sharing proposal 
listed above. 

4. Advise CRC to take no action,  leaving their prescheduled energy within 
NEVP Control (take  NEVP imbalance).

Either option would begin with doing an SC trade purchase from WESCO,  CRC's 
supplier.     We would coordinate with Wesco and/or Bill Miller  the hours 
and mw's involved and submit our trades to the ISO.     The energy being sold 
will most likely have been prescheduled to CRC from the ISO (Wesco gen.  in 
SP15) .   We had been "turning this energy around"   to point it toward the 
ISO in the RT.    If this remains to be the  case,  we will still have to 
coordinate with the ISO,  WAPA and NEVP to inform them of any interruption of 
prescheduled energy schedules to CRC.

We have been spending alot of time on the PX Day of transactions for this 
customer.      This option would reduce keystrokes and calls and give us more 
trading opportunity with CRC.

As always,  you need to have a two - way in mind for each load zone and for 
your entire shift.

DO NOT SUPPLY CRC WITH A SETTLEMENTS SHEET UNTIL I APPROVE IT.

If you have questions give me a call,

JMF