Subject: SMUD Debt Rating Further Clarified
From: [email-masked]
To: [email-masked], [email-masked], [email-masked]
Cc: [email-masked]
Date: Thu, 8 Mar 2001 00:18:00 -0800 (PST)

Please use the following debt measurement for the Physical Power, ISDA, and 
Enfolio Master Firm contracts for SMUD:

MAC occurs if any of the following occurs:
(1) uninsured, Electric Revenue Bonds are rated below BBB- or are no longer 
rated by S&P
(2) SPUR (underlying rating) of any Electric Revenue Bonds below BBB-

Provision 2 above does not need to have the additional clause of "or is no 
longer rated by S&P".

Please call w/any questions.

Thanks,
Tracy
503-464-8755