Subject: PG&E Energy Trading - Power, L.P.
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked]
Date: Wed, 17 Jan 2001 00:49:00 -0800 (PST)

This is to summarize our previous discussion:

EPMI took an assignment of ALL EEMC's (an affiliate of EES) deals with PG&E 
Energy Trading  - Power, L.P. (PGET) whereby EPMI is now buying all of the 
power from PGET.
EPMI then acts as "sleeve" for EES and sells the power to EES with a $.05 
sleeve fee
With respect to the specific EEMC deal # ACW672, EEMC originally was buying 
75MW from PGET at a price of $29.90.
After taking over EEMC's portfolio, EPMI, PGET and Avista Energy entered into 
a 3-party assignment, assumption and settlement agreement whereby EPMI and 
AvistaEnergy "took out" PGET of the picture for 50MW of the 75MW piece.
By doing so, EPMI thus is buying 50MW from Avista Energy and the remaining 
25MW still from PGET
The new 50MW piece from Avista Energy results in a purchase price of $29.80 
and a sale price of $29.85 to EES.  [the reason for the price decrease is 
because when we entered into the 3-party agreement, in order to "take out" 
PGET we had to pay them their profit in that deal stream ie monetizing their 
spread of $.10 per MW]
The remaining 25MW piece from PGET kept the SAME PRICING of $29.90 since we 
left that 25MW block alone.

If you have any additional questions, please call me.

Tracy
503-464-8755