Securitization

I sent Kari Dohn some more information today--thanks, Jim, for the
Pennsylvania info. In the note, I asked her if the rumors about
securitization are true, and whether the Governor, indeed, intends to push it
actively.

I also mentioned that we viewed it as a very promising option, particularly
if accompanied by significant concessions by the utilities. The response
from Kari is very encouraging, and will hopefully help the utilities' credit
position, though I heard PG&E was downgraded to junk by at least one credit
agency today, but haven't confirmed it.

Think it's prudent to keep Kari's info very close to the vest--here's
Kari'her response:

Jeff -- thank you so much for the information!

Re: securitization, I don't think the exact form has been decided in terms
of legislation, but its fair to say there are very active discussions at the
highest level regarding the best way to do this (with good support, between
us, it appears). All major parties will need to be supportive.