Talked to Peevey

Just talked to Peevey. He told me that he and Freeman personally worked with
Bilas on Bilas' draft decision--the decision designed to make CDWR
creditworthy and keep the PUC from touching Direct Access until the
Legislature has a chance to fix the AB1X prohibition.

I made the pitch re: decision does what it takes to fix the creditworthy
issue and the Commission needs to vote it out immediately. He said he agreed
but expressed his general frustration with the decision making process
generally, and said that he is not certain right now if the decision is
greased to get voted out at the next Commission meeting.

He said that he's going to be talking to the Governor this afternoon and will
push the issue with him. I asked him to keep me updated. He said that he
would.

I told him that it wasn't helpful that the Governor named names in New York
regarding alleged agreements about "haircuts," particularly when folks are
trying to negotiate deals with DWR. He wasn't aware of that and asked me to
fax him the Merril press, which I did. I'll also fax him our letter
supporting the Bilas decision.

Best,
Jeff