Chris -

Sorry for the delay again.  We have had a very busy two days, with the hopes
for bluer skies starting tomorrow.  Please read the below and let me know
where your concerns are.  Of course, in the issues sections, we will most
likely need your assistance in overcoming.

Issues/Addressing Actions
*	Locating a reliable source for volume actuals remains difficult.  
*	I have still not been able to obtain Michael Frazier's 12-months
to-date report on volumes, but upon doing so we can determine the source's
value.
*	I have put a call out to Eric Evans, a Manager at CSC in Dublin, OH,
to discuss the Project Ranger, where they went out a validated actual
volumes.  We need to confirm the target set of counterparties and/or
utilities used here so that we can leverage their information for our
project.
*	As a team, it is still not clear as to our direction for handling
contracts that do not have baselines/bandwidths defined.

Current status
*	Completed PG&E baseline/bandwidth information capture (based only on
the paper contracts on hand already).  This amounted to 25 paper contracts
and 44 deals.  The timing for processing one contract is being determined so
that we can prepare a thorough analysis of the time and expenses required to
complete the project.
*	The Access DB tool has been completed with regard to to-date
submitted requirements, both front- and back-end.  We are awaiting your
approval and further requirements definition, in addition to the potential
change efforts.
*	We have confirmed a process for working the
Validation/Reconciliation and Baseline/Bandwidths projects in parallel.
Contracts will first go through the Validation/Reconciliation phase, then
through the Baseline/Bandwidths phase.  Due to the lower amount of time
required to process a single contact, a smaller, dedicated team of
personnel, under Annie Leung's organization, will be on hand to perform the
Baseline/Bandwidths information capture activities.

Future planned activities
*	Continue Baseline/Bandwidths information capture activities to
gather metrics; the process is to begin in full on Monday.

> kpmg LLP  Information Risk Management
Joshua P. Galv?n
Senior Associate
700 Louisiana, Ste. 3200
Houston, Texas  77002
713/319-2082 (wrk)
713/256-8499 (mob)
jgalvan@kpmg.com

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