Rabobank Nederland's Objections to Disclosure Statement; and Memorandum of Points and 13 Authorities in Support Thereof

1 RICHARD W. ESTERKIN (70769) MORGAN, LEWIS & BOCKIUS LLP 2 300 South Grand Avenue Twenty-Second Floor 3 Los Angeles, CA 90071-3132 Tel.: 213.612.2500 4 Fax: 213.612.2554

5 Attorneys for RABOBANK NEDERLAND 6

7 COURT 8 UNITED STATES BANKRUPTCY

9 NORTHERN DISTRICT OF CALIFORNIA

10 SAN FRANCISCO DIVISION 01-30923 11 In re Case No. Chapter 11 PACIFIC GAS AND ELECTRIC CO., 12 RABOBANK NEDERLAND'S OBJECTIONS STATEMENT; AND 13 Debtor. TO DISCLOSURE MEMORANDUM OF POINTS AND IN SUPPORT THEREOF 14 AUTHORITIES Date: December 19, 2001 15 Time: 9:30 a.m. Place: 235 Pine Street 16 22nd Floor Francisco, CA 17 San Judge: Hon. Dennis Montali 18 19 20 II 21 /III 22 II 23 II 24 /III 25 II 26 /11/ 27 II 28 I

1-L1./59235-6.2 7 /K 1 TABLE OF CONTENTS

2 Page 1 3 I. RABOBANK'S CLAIM ...... CLAIM ...... 1 4 II. THE PROPOSED PLAN'S TREATMENT OF RABOBANK'S 3 III. OBJECTIONS TO DISCLOSURE STATEMENT ...... 5 A. Introduction ...... 3

6 B. The Disclosure Statement Fails to Provide Sufficient Information so as to Enable Creditors the Plan ..... 4 7 to Evaluate the Credit Risks Inherent in 4 8 1. Introduction ...... 2. The Disclosure Statement Fails to Provide Assets 9 Sufficient Information Regarding the to be Retained by the Reorganized Debtor ...... 5 10 3. The Disclosure Statement Fails to Provide Sufficient Information Regarding the Debtor's II Liabilities to be Assumed by the LLCs ...... 7 12 4. The Disclosure Statement Fails to Provide Sufficient Information Regarding the Debtor's 8 13 Post-Confirmation Operations ...... C. The Disclosure Statement's Description of the 14 Plan's Treatment of the Class 4f Claims is 10 ...... 15 Inadequate and Ambiguous D. The Disclosure Statement Fails to Adequately of the 16 Describe the Terms of the Proposed "Sale" Debtor's Assets to its Parent ...... 13 17 E. The Disclosure Statement's Description of the Third Party Releases to be Provided Under the Plan 18 is Incomplete and Ambiguous ...... 16 18 19 IV. CONCLUSION ......

i AUTHORITIES 1 TABLE OF Page(s) 2 Inc., 3 In re Adana Mortgage Bankers, 5 14 B.R. 29 (Bankr. N.D. Ga. 1981) ...... 4 Inc., In re Allied Gaming Management, W.D. La. 1997) ...... 13 5 209 B.R. 201, 203 (Bankr.

6 In re American Hardwoods, 4 885 F.2d 621 (9th Cir. 1989) ...... 7 In re Andy Frain Services, Inc., ...... 13 8 798 F.2d 1113 (7th Cir. 1986)

9 In re Apex Oil Co., 13 92 B.R. 847 (Bankr. E.D. Mo. 1988) ...... 10 Street Partnership Bank of America v. 203 North LaSalle 11 (In re 203 North LaSalle Partnership), 526 U.S. 434, 5 12 119 S.Ct. 1411 (1999) ......

13 In re Dakota Rail, Inc., 5 104 B.R. 138 (Bankr. Minn. 1989) ...... 14 Donovan & Schuenke v. Sampsell, ...... 13 15 226 F.2d 804 (9th Cir. 1955)

16 In re Joseph A. Ferretti, 6 128 B.R. 16 (Bankr. N.H. 1991) ...... 17 In re Ligon, 1985) ...... 4 18 50 B.R. 127 (Bankr. M.D. Tenn. Services, Inc., 19 In re Metrocraft Publishing 14 1984) ...... 39 B.R. 567 (Bankr. N.D. Ga. 20 In re W.A. Mallory Co., Inc., Va. 1997) ...... 13 21 214 B.R. 834 (Bankr. E.D. 22 STATUTES 23 ...... 11 U.S.C. § 1125(a) (1)...... 24 3 11 U.S.C. § 1125(b) ...... 25 11 U.S.C. § 1129(b) (2) (B) (ii) ...... 26

ii B.A., 1 Cooperative Centrale Raiffeisen-Boerenleenbank objects to the 2 "Rabobank Nederland" ("Rabobank") hereby Under Chapter 3 "Disclosure Statement for Plan of Reorganization and Electric Company 4 11 of the Bankruptcy Code for Pacific Gas and PG&E 5 proposed by Pacific Gas and Electric Company as follows: 6 Corporation" (the "Disclosure Statement") 7 I.

8 RABOBANK'S CLAIM of Pacific Gas and 9 Rabobank is an unsecured creditor of 10 Electric Company, holding a claim in the amount as described 11 $160,834,630.14, plus interest, fees and expenses

12 in Rabobank's proof of claim filed herein. of its issuance of 13 Rabobank's claim arises as a result with the 1996 Series B 14 a standby letter of credit in connection Pollution 15 Pollution Control Bonds issued by the California Pacific Gas and 16 Control Financing.Authority at the behest of of credit was paid 17 Electric Company (the "Debtor"). That letter on May 3, 2001. The 18 by Rabobank to the beneficiaries thereof Rabobank for 19 Debtor has defaulted on its obligation to reimburse plus interest 20 the amount advanced under its letter of credit,

21 fees and expenses due thereunder.

22 CLAIM 23 THE PROPOSED PLAN'S TREATMENT OF RABOBANK'S of Reorganization 24 Pursuant to the terms of the Plan Pacific Gas and 25 Under Chapter 11 of -he Bankruptcy Code for "Plan"), 26 Electric Company dated September 20, 2001 (the claim (Prior Bond 27 Rabobank's claim is classified as a Class 4f 28 I//I

I-LA/592356.2 1 1.1 (definition of "Prior Bond 1 Claims). See Plan at Article

2 Claims,") and Article III. holders terms of the Plan, unless the 3 Pursuant to the the a new letter of credit to support 4 of Prior Bond claims issue Bonds!, holders of Class 4f claims 5 Debtor's issuance of Refunding distributions on account of their 6 are to receive the following 7 claim: to the all interest and other sums due 8 a. Payment of with the terms of the 9 holder of such claims in accordance

10 applicable Reimbursement Agreement; of the principal amount due under 11 b. Payment of 60% and 12 the Reimbursement Agreement; 40% of the principal amount 13 c. As to the remaining Agreement, the Reimbursement 14 due under the Reimbursement such that "the Reorganized Debtor 15 Agreement is to be modified thereunder for the remaining forty 16 shall remain solely liable Reimbursement Obligation which 17 percent (40%) of the respective same years and bear interest at the 18 shall be payable in ten (10) notes with a ten (10) year 19 rate as the Reorganized Debtor's § 4.12(b). 20 maturity . .- Plan at foregoing plan treatment, the 21 As a result of the the 4f are exposed to the risk that 22 holders of claims in Class principal repay the deferred 40% of the 23 Debtor will be unable to the end of the ten year restructure 24 amounts of their claims at this Plan. In the case of Rabobank, 25 period contemplated by the $64,000,000. 26 obligation amounts to approximately herein have the meanings ascribed 27 1 Capitalized terms not defined and Plan. them in the Disclosure Statement 28 to

1-LA/592356".22 2 OBJECTIONS TO DISCLOSURE STATEMENT

3 A. Introduction approve 4 The Bankruptcy Code requires that this Court

5 the Disclosure Statement as containing "adequate information" the Plan. 6 prior to it being utilized to solicit acceptances of Court's 7 11 U.S.C. § 1125(b). The standard applicable to this

8 determination as to whether or not the Disclosure Statement

9 contains "adequate information" is clearly articulated by the 10 Bankruptcy Code:

11 "[A]dequate information means information of a kind, and in sufficient detail as far as is 12 reasonably practical in light of the nature and history of the debtor and the condition 13 of the debtor's books and records, that would enable a hypothetical reasonable investor 14 typical of holders of claims or interests of the relevant class to make an informed 15 judgment about the plan

16 11 U.S.C. § 1125(a) (1). as it 17 The Disclosure Statement is materially defective

18 pertains to the holders of Class 4f claims in at least four

19 respects. First, the Disclosure Statement does not contain

20 sufficient information to enable any holder of a Class 4f claim

21 to evaluate the credit risk that the Plan proposes to impose

22 upon holders of Class 4f claims. Second, the Disclosure

23 Statement's description of the proposed treatment of Class 4f 1 24 claims is ambiguous and incomplete.2 Third, the Disclosure

25 Statement fails to provide adequate information pertaining to

26 the Plan's proposed "sale" of what appears to be a substantial

27 2/ The Plan's description of the treatment accorded to Class 4f claims is similarly ambiguous and incomplete. 28

I-LA/592356 .2 -3 controlled by its 1 portion of the Debtor's assets to entities discussion of the 2 parent. Fourth, the Disclosure Statement's is ambiguous and the 3 release to be provided to PG&E Corporation the claims being released 4 Disclosure Statement fails to describe creditors can determine 5 with sufficient particularity so that claims in exchange for 6 whether or not they wish to release those

7 the treatment proposed under the Plan.•/ Sufficient The Disclosure Statement Fails to Provide 8 B. Evaluate the Information so as to Enable Creditors to 9 Credit Risks Inherent in the Plan.

10 i. Introduction. a claim in Class 4f 11 In order to permit the holder of Plan proposes to impose 12 to evaluate the credit risk that the require information 13 upon that creditor, the creditor would Debtor (as only the 14 concerning (a) the assets of the Reorganized for the deferred portion 15 Reorganized Debtor is to remain liable by Class 4f creditors), (b) 16 of the distribution to be received Debtor will be assuming 17 the liabilities that the Reorganized regarding the Reorganized 18 under the Plan and (c) information operations. As stated in 19 Debtor's anticipated post-confirmation M.D. Tenn. 1985): 20 In re Ligon, 50 B.R. 127, 130 (Bankr.

21 Knowledge of the debtor's financial condition is essential before any informeddecision 22 concerning the merits of a plan can be made. A description of available assets and their 23 value is a vital element of necessary disclosure. 24 25 II

26 proposed its right to object to the Plan's 3/ Rabobank reserves hearing. In re 27 releases of non-debtors at the plan confirmation American Hardwoods, 885 F.2d 621 (9th Cir. 1989). 28

1-LA/592356..2 4 1 See also In re Dakota Rail, Inc., 104 B.R. 138, 147 (Bankr. 29 2 Minn. 1989) and In re Adana Mortgage Bankers, Inc., 14 B.R.

3 (Bankr. N.D. Ga. 1981). The Disclosure Statement is woefully

4 deficient in all three respects.

5 2. The Disclosure Statement Fails to Provide Sufficient

6 Information Regarding the Assets to be Retained by the

7 Reorganized Debtor.

8 According to the Disclosure Statement, the "majority"

9 of the Debtor's assets and liabilities associated with its

10 electric transmission, gas transmission and power generation

11 businesses (the "Transferred Assets" and "Transferred

12 Liabilities") will be transferred to newly formed limited

13 liability companies, ETrans LLC, GTRans LLC and Gen LLC The 14 (collectively, the "LLCs"). Disclosure Statement § VI(A).

15 membership interests in these entities will be held by a newly to 16 formed corporation, Newco, whose shares will be distributed

17 PG&E Corporation, the Debtor's parent company. Id. Therefore,

18 effectively, the Plan contemplates that the Debtor will transfer

19 the Transferred Assets beyond the reach of the Reorganized 1 20 Debtor's creditors, including the holders of Class 4f claims.V

21 While the Disclosure Statement generically describes

22 the Transferred Assets, the actual assets to be transferred are

23 4/ It would appear, based upon this provision of the Plan, that the 24 Debtor's shareholder is receiving property on account of its interest in the Debtor and that, therefore, the Plan could not be confirmed 25 absent the consent of all classes of unsecured creditors. 11 U.S.C. § 1129(b) (2) (B) (ii); Bank of America v. 203 North LaSalle Street 26 Partnership (In re 203 North LaSalle Partnership), 526 U.S. 434, 119 S.Ct. 1411 (1999). Rabobank reserves the right to object to the 27 confirmation of the Plan at the plan confirmation hearing on this basis. 28

1-LA/592356.2 n that the Debtor proposes 1 to be enumerated in a "Plan Supplement" voting on the Plan. 2 to file ten days prior to the deadline for (!) and VI(D) (1) ; and 3 Disclosure Statement §§ VI(B) (1), VI(C) the Disclosure 4 §§ VI(B) (2), VI(C) (2) and V(D) (2). Therefore, the Transferred Assets. 5 Statement fails to specifically describe of the Plan Supplement as 6 That defect is not cured by the filing of this Court and 7 that document is not subject to the approval creditors. Further, the 8 is not proposed to be disseminated to reference to extrinsic 9 provision of required information by in the 10 documents, rather than including that information In re 11 Disclosure Statement itself, is strongly disfavored. N.H. 1991) (If 12 Joseph A. Ferretti, 128 B.R. 16, 20 (Bankr. referenced in a disclosure 13 information in extrinsic documents is disclosed in the disclosure 14 statement "it should be specifically if absolutely 15 statement, with annexed exhibits only

16 necessary."). Statement does 17 Finally, although the Disclosure the Reorganized Debtor as 18 include a projected balance sheet for Plan, the Disclosure 19 of the anticipated effective date of the of the assets that 20 Statement fails to contain any specification other than a brief 21 the Reorganized Debtor is to retain, Debtor will retain 22 reference to the fact that the Reorganized distribution assets . 23 "substantially all of the Debtor's to the Plan. 24 that are not transferred or sold pursuant

. In short, a reading of the 25 Disclosure Statement at § VI(E) (1) as to the 26 Disclosure Statement omits material information Assets and the identity of 27 identity and value of the Transferred Debtor. Therefore, 28 the assets to be retained by the Reorganized

1-LA/592356.2 6 I the Plan 1 creditors, such as holders of Class 4f claims, who material 2 proposes to expose to a future credit risk lack judgment 3 information required to enable them to make an informed should not 4 on the Plan. As a result, the Disclosure Statement

5 be approved. Sufficient 6 3. The Disclosure Statement Fails to Provide be 7 information Regarding the Debtor's Liabilities to

8 Assumed by the LLCs. of the 9 The Disclosure Statement states that, as a part of the LLCs is to 10 Debtor's restructuring of its businesses, each Debtor, all 11 assume "certain liabilities and obligations of the

12 as set forth on Schedule 7.2(b) to the Plan Supplement." VI(D) (2) . The 13 Disclosure Statement at §§ VI (B) (2) , VI (C) (2) and the aggregate 14 Disclosure Statement fails to identify, either in assumed or the 15 or as to each of the LLCs, the liabilities to be classes of 16 amount thereof. The Plan does provide that certain course of 17 liabilities are to be paid "in full in the ordinary GTrans, Gen 18 business at such time and in such manner as ETrans, is obligated to 19 or the Reorganized Debtor, as the case may be, Plan at 20 satisfy such Allowed Claim under applicable law." Damages) and 21 §§ 4.17 (Environmental and Tort Claims for Actual Damages). The 22 4.18 (Environmental and Tort Claims for Punitive be liable for 23 Plan also provides that each of the LLCs is to to holders of 24 specified portions of the Debtor's obligations 4.20. Although 25 Chromium Litigation Claims. Plan at §§ 4.19 and are to 26 the Disclosure Statement indicates that these liabilities

27 be assumed (Disclosure Statement at §§ VI(H) (2) and VI(J)), the Plan 28 there is nothing in either the Disclosure Statement or

I-LA/592356.2 ! or that these are 1 that indicates the amount of these liabilities 2 the only liabilities to be assumed. of the Transferred 3 Disclosure of the nature and amount creditors to assess 4 Liabilities is required in order to allow of the nature 5 the feasibility of the Plan. Absent disclosure creditors cannot 6 and amount of the Transferred Liabilities, exposure on those 7 determine the Reorganized Debtor's remaining of the Debtor's 8 liabilities and, hence, the feasibility of the interdependence 9 projected operations. Further, in light Disclosure Statement 10 of the Reorganized Debtor and the LLCs, the creditors to 11 must contain information sufficient to enable operations, such as 12 assess the feasibility of the LLCs' future Liabilities that they 13 the nature and amount of the Transferred Statement should not 14 are assuming. Accordingly, the Disclosure the nature and amount 15 be approved absent specific disclosure of 16 of the Transferred Liabilities. to Provide Sufficient 17 4. The Disclosure Statement Fails Post-Confirmation 18 Information Regarding the Debtor's 19 Operations. regarding the 20 The only information provided operations consists of 21 Reorganized Debtor's post-confirmation in Exhibit "C" 22 the summary projected income statement included extends through 23 to the Disclosure Statement. This projection four years post 24 December 31, 2005, or between three and 4f claims are being 25 confirmation. Since the holders of Class they 26 asked to extend credit for ten years post-confirmation, to base their 27 have no financial information upon which are being asked to 28 assessment of the credit risk that they

I-LA/592356.2 8 1 assume for the last six and one-half years of the term of that

2 credit. Even ignoring the summary nature of the Debtor's

3 projections, the absence of such information renders the

4 Disclosure Statement inadequate.

5 The Disclosure Statement states that the Reorganized

6 Debtor will enter into a host of contracts with the LLCs. These

7 include the following:

8 &. A contract with ETrans to enable the Reorganized

9 Debtor to continue to provide certain interconnection and

10 transmission services (Disclosure Statement § VI(B) (1));

11 b. A contract with GTrans "related to gas

12 transmission and storage rights (Disclosure Statement

13 § VI(C)(i)); and

14 c. A contract with Gen pursuant to which the

15 Reorganized Debtor will purchase the power generated by the

16 Debtor's former power generation facilities being transferred to

17 Gen (Disclosure Statement § VI(D) (2).

18 The Disclosure Statement does not describe any of the terms of

19 the Reorganized Debtor's proposed contracts with ETrans or

20 GTrans, but states that the GTrans contract is to be included in

21 the Plan Supplement filed ten days prior to the deadline for

22 voting on the Plan. Disclosure Statement at § VI(F) (2). As

23 noted above, that proposed filing will not cure the infirmities

24 in the Disclosure Statement as it is not proposed that the

25 documents to be filed will be approved by this Court as

26 adequately disclosing the information required by creditors to

27 vote on the Plan, and will not be disseminated to creditors.

28 The only information provided in the Disclosure Statement

I-LA/592356 .2 9 that it will be for a 1 regarding the proposed Gen contract is the low end of a 2 period of twelve years and "will be toward

3 range of current wholesale benchmark prices." Debtor's proposed 4 It is obvious that the Reorganized to the Reorganized 5 contracts with the LLCs are highly material those contracts will 6 Debtor's post-confirmation business as access to the power and 7 provide the Reorganized Debtor with It is also obvious 8 facilities required to operate its business. terms of those 9 that the Debtor must know the material financial to have been 10 contracts because those financial terms had Debtor's and 11 factored into the projections of the Reorganized Statement. There is 12 LLCs' operations appended to the Disclosure not disclosing the 13 not, therefore, any excuse for the Debtor in the Disclosure 14 material terms of those critical contracts 15 Statement.

16 C. The Disclosure Statement's Description of the Plan's and Treatment of the Class 4f Claims is Inadequate 17 Ambiguous. that the holders of 18 The Disclosure Statement states cash payments on the 19 claims in Class 4f will receive certain thereafter. The 20 Effective Date, or as soon as is practicable

21 Disclosure Statement then states that:

22 Each Prior Reimbursement Agreement between the Debtor and a Prior Letter of Credit 23 Issuing Bank will be modified on the Effective Date to provide that the 24 Reorganized Debtor shall remain solely liable thereunder for the remaining forty percent 25 (40%) of the respective Reimbursement Obligation which shall be payable in ten 26 years and shall bear interest at the same rate as the Reorganized Debtor notes with a 27 ten year maturity, unless and until, with respect to each series of Prior Bonds, (a) 28 the Issuer (or other authorized governmental

2 1-LA/592356. 10 1 entity) issues a new series of revenue refunding bonds for the benefit of the in an 2 Reorganized Debtor ("Refunding Bonds") aggregate principal amount equal to the and (b) the 3 outstanding Refunding Obligation, terms and conditions relating to the issuance are 4 of Refunding Bonds set forth below satisfied. . ... 5 The foregoing language is 6 Disclosure Statement § VI (L)(13). 7 ambiguous in three material respects. does not state the 8 First, the Disclosure Statement be issued in 9 amount of the new revenue refunding bonds that must

10 order to accelerate the maturity of the restructured of 11 Reimbursement Obligation. According to the express language of such bonds is to be 12 the Disclosure Statement, the amount Obligation." However, the 13 equal to the "outstanding Refunding defined in either the Plan or 14 term "Refunding Obligation" is not that this portion of the 15 the Disclosure Statement. The fact the principal 16 Disclosure Statement refers to the 40% portion of that the amount of the 17 amount of the Prior Bonds suggests sum. However the quoted 18 "Refunding Obligation" is equal to that to the 19 portion of the Disclosure Statement also refers in the Plan as meaning: 20 "Refunding Bonds," which are defined a 21 with respect to each series of Prior Bonds, new series of revenue bonds to be issued by 22 the Issuer (or other authorized governmental entity) for the benefit of the Reorganized 23 Debtor, the proceeds of the sale of which shall be loaned by the Issuer to the paying 24 Reorganized Debtor for the purpose of the principal portion of the redemption price 25 of such series of Prior Bonds by paying the related Reimbursement Obligation. 26 In turn, the Plan defines 27 Plan at Article 1.1 (emphasis added). as meaning: 28 the term "Reimbursement Obligation"

I-LA/592356.2 11 Prior Bonds, 1 with respect to each series of that portion of the reimbursement obligation 2 of the Debtor under the Prior Reimbursement Agreement arising with respect to the portion the related 3 of the final drawing made under Prior Letter of Credit for the payment of the price of 4 principal portion of the redemption the related series of Prior Bonds. 5 "Reimbursement Obligation" 6 Plan at Article 1.1. Since the term Prior Letter of 7 refers to the entire principal amount of the $160 million) and the 8 Credit (in Rabobank's case, approximately amount of the 9 term "Refunding Bonds" refers to the entire in the Disclosure 10 "Reimbursement Obligation," the reference as though, in 11 Statement to the Refunding Bonds makes it appear in the principal sum of 12 the case of Rabobank, new bonds issued in order to accelerate 13 approximately $160 million must be Reimbursement Obligation. This 14 the maturity of the restructured in an amended disclosure 15 ambiguity ought to be clarified

16 statement (and an amended plan). Statement does not state when 17 Second, the Disclosure Reimbursement 18 payments are to be made under the restructured the 19 Obligation. According to the Disclosure Statement, "shall be payable in ten 20 restructured Reimbursement Obligation the same rate as the 21 years and shall bear interest at ten year maturity." It is 22 Reorganized Debtor notes with a interest accruing on that 23 unclear, therefore, whether the maturity of the obligation or 24 obligation is payable only at the

25 at some interval prior to maturity. on the restructured 26 Third, the interest rate be determined from either the 27 Reimbursement Obligation cannot As noted above, that interest 28 Disclosure Statement or the Plan.

1-LA/592356.2 . .L Z 1 rate is to be equal to "the Reorganized Debtor notes with a ten

2 year maturity." Neither the Disclosure Statement nor the Plan

3 prescribe the interest rate of such notes.

4 D. The Disclosure Statement Fails to Adequately Describe the Terms of the Proposed "Sale" of the Debtor's Assets to its 5 Parent.

6 As noted above, the Plan provides for the Debtor's

7 transfer of the "majority" of the Debtor's assets and

8 liabilities associated with its electric transmission, gas

9 transmission and power generation businesses to the LLCs. The

10 membership interests in the LLCs are to be held by a newly

11 formed corporation, whose shares are to be distributed to the

12 Debtor's parent corporation, PG&E Corporation, ("PG&E")

13 Therefore, in substance, the Plan proposes to sell the

14 Transferred Assets to PG&E.

15 Caselaw is divided on the question of whether or not

16 there is an absolute prohibition upon sales to "insiders," such

17 as PG&E. Some courts have impcsed absolute bans on such

18 transfers. Donovan & Schuenke v. Sampsell, 226 F.2d 804, 811

19 (9th Cir. 1955) (Holding that, under the former Bankruptcy Act,

20 "The prohibition is absolute in the public interest.") and In re

21 Allied Gaming Management, Inc., 209 B.R. 201, 203 (Bankr. W.D.

22 La. 1997) (fact that fiduciary of the debtor's estate was also a

23 major shareholder of a plan proponent disqualified the plan

24 proponent from purchasing assets of the estate). Other courts

25 have permitted such sales, but subjected the sales to a higher

26 degree of scrutiny. In re Andy Frain Servs., Inc., 798 F.2d

27 1113, 1125 (7th Cir. 1986); In re W.A. Mallory Co., Inc., 214

28 B.R. 834, 837 (Bankr. E.D. Va. 1997) and In re Apex Oil Co., 92

1-LA/592356.2 13 1 B.R. 847, 869-70 (Bankr. E.D. Mo. 1988). Even if this Court

2 determines that an outright ban on such sales in not appropriate

3 in the present circumstances, the Disclosure Statement falls

4 woefully short of providing the sort of disclosure that should

5 be required as a prerequisite to creditors' consideration of the

6 merits of the proposed insider sale.

7 First, the Disclosure Statement fails to state in a

8 concise summary the terms and conditions of the proposed

9 transfer. Thus, in order to understand the consideration being

10 provided to the Debtor for the Transferred Assets, creditors are

11 forced to review the entire Disclosure Statement and compile

12 their own list of the cash and notes being received by the

13 Debtor for the Transferred Assets and, to the extent disclosed

14 by the Disclosure Statement, the Transferred Liabilities being

15 assumed by the LLCs. All of the terms and conditions of the of 16 proposed transfers ought to be summarized in a single section

17 the Disclosure Statement so that creditors can evaluate the

18 proposed transaction without having to parse through the

19 entirety of the voluminous Disclosure Statement.

20 Second, as noted above the Disclosure Statement's

21 description of the Transferred Assets is inadequate to enable

22 creditors to determine what assets are being transferred. The

23 Disclosure Statement is also deficient in that it omits any

24 information as to either the value of the transferred assets or

25 the manner in which those assets were valued for purposes of the

26 sale. In re Metrocraft Publishing Services, Inc., 39 B.R. 567

27 (Bankr. N.D. Ga. 1984)

28 I//I

i-LA/592356.2 I Li 1 Third, as noted above, the Disclosure Statement fails

2 to clearly state what liabilities the LLCs are assuming in

3 exchange for the Transferred Assets or provide any estimate of

4 the magnitude of those liabilities.

5 Fourth, the Disclosure Statement notes that the Debtor

6 is engaged in certain litigation to recover monies allegedly

7 owed to the Debtor and that a significant percentage of any

8 recovery as a result of that litigation is to be assigned to

9 Newco. Disclosure Statement at §§ VI(H) (1), VI(H) (3) and

10 VI(H) (4). Although the Disclosure Statement describes that

1i litigation, it does not include any description as to the amount

12 that the Debtor seeks to recover, the Debtor's views as to the

13 probability of its recovering anything from the litigation or

14 the timing of such recovery. As a result, creditors are unable

15 to assess the value of the rights that the Debtor proposes to

16 assign to Newco and, derivatively, to PG&E.

17 Finally, a significant portion of the consideration to

18 be received by the Debtor for the Transferred Assets consists of

19 notes from the LLCs. The only description of those notes

20 appears to be in Exhibit D to the Disclosure Statement. That

21 exhibit fails to indicate:

22 a. The term of the notes in the case of the Long

23 Term Notes (10, 20 or 30 years),

24 b. The interest rate of the notes ("market rate"),

25 c. Whether or not any principal will be paid on the

26 notes prior to their maturity, and

27 d. In the case of the Chromium Long-Term

28 Subordinated Notes, even the amount of the notes.

1-LA/592356.2 .L Z 1 In short, it is impossible for creditors to evaluate the value

2 of the notes to be received by the Debtor in exchange for the

3 Transferred Assets from the information provided in the

4 Disclosure Statement.

5 In summary, even assuming that this Court agrees with

6 those Courts permitting asset sales to insiders, the Disclosure

7 Statement lacks even the most basic information required to

8 enable creditors to evaluate the proposed sale. As a result,

9 the Disclosure Statement should not be approved in its present

10 form.

11 E. The Disclosure Statement's Description of the Third Party Releases to be Provided Under the Plan is Incomplete and 12 Ambiguous.

13 The Disclosure Statement states that the Plan

14 constitutes a release by the Debtor of any claims that could

15 have been asserted against its parent, PG&E Corporation,

16 including, but not limited to avoidance claims. Disclosure

17 Statement § VI(W) (7). The Disclosure Statement fails to

18 identify the consideration being provided to the estate for the

19 release of those claims or any description of any facts related

20 to the released claims so that creditors can evaluate the merits

21 of such claims. The Debtor should be required to either provide

22 the foregoing disclosures or to eliminate the release in favor

23 of its parent, and co-proponent of the Plan.

24 The provisions of the Plan and the Disclosure

25 Statement appear to be inconsistent with respect to the timing

26 of the releases in favor of PG&E Corporation. The Disclosure

27 Statement states that: 28 //I/

1-LA/592356.2 16 1 In partial consideration for the terms of the Plan, including, but not limited to, the 2 complete satisfaction of all Allowed Claims against the Debtor and the Reorganized Debtor 3 Spin-Off, the confirmation of the Plan shall constitute a full waiver and release by the 4 Debtor 5 Disclosure Statement at § VI(W) (7) (emphasis added). The

6 foregoing language suggests that the releases to be provided by 7 the Debtor and others become effective upon the satisfaction of

8 all Allowed Claims, in the case of Class 4f claims, after 9 payment of the deferred portion of the Debtor's obligation under

10 the applicable Reimbursement Agreement, ten years after the 11 Effective Date of the Plan. The Plan states that:

12 As of the Effective Date, the Debtor releases the Parent from any and all Causes of Action 13 held by, or assertable on behalf of, or derivative from, the Debtor . 14

15 Plan at § 11.5(b). The foregoing language states that the 16 Debtor's release of PG&E Corporation becomes effective upon the

17 Effective Date of the Plan. Creditors, such as the holders of 18 Class 4f claims, whose claims are not being paid on the

19 Effective Date of the Plan, should be clearly and unambiguously

20 informed whether or not the Debtor's release of PG&E Corporation

21 is to become effective on the Effective Date, or only when the

22 Reorganized Debtor completes its performance of the Plan.

23 Further, creditors, such as the holders of Class 4f claims, who

24 are unlikely to be paid prior to the expiration of the statute

25 of limitations on the claims being released, should be informed

26 about the relevant statute of limitations and its effect upon

27 their rights, unless PG&E Corporation waives any applicable

28 statue of limitations.

1-LA/592356.2 17 1 IV.

2 CONCLUSION

3 For the foregoing reasons, it is respectfully

4 submitted that the Court should deny approval of the Disclosure

5 Statement in its present form.

6 Dated: November 26, 2001 MORGAN, LEWIS & BOCKIUS LLP

8 By 7f= Richard W. Esterkin 9 Attorneys for RABOBANK NEDERLAND 10

1-LA/592356.2 18 1 PROOF OF SERVICE BY MAIL

2 T am a citizen of the United States and employed in

3 Los Angeles County, California. I am over the age of eighteen

4 years and not a party to the within-entitled action. My

5 business address is 300 South Grand Avenue, Twenty-Second Floor,

6 Los Angeles, CA 90071-3132. I am readily familiar with this

7 firm's practice for collection and processing of correspondence

8 for mailing with the United States Postal Service, On November

9 26, 2001 I placed with this firm at the above address for

10 deposit with the United States Postal Service a true and correct

11 copy of the within documents:

12 RABOBANK NEDERLAND'S OBJECTIONS TO DISCLOSURE STATEMENT; AND MEMORANDUM OF POINTS AND 13 AUTHORITIES IN SUPPORT THEREOF

14 in a sealed envelope, postage fully paid, addressed as follows:

15 Please see attached Service List

16 Following ordinary business practices, the envelope

17 was sealed and placed for collection and mailing on this date,

18 and would, in the ordinary course of business, be deposited with

19 the United States Postal Service on this date.

20 I declare that I am employed in the office of a member

21 of the bar of this court at whose direction the service was

22 made.

23 Executed on November 26, 2001 at Los Angeles,

24 California.

27 U J• jacobs

1-LA/592356.2 SPECIAL NOTICE LIST As of November 26, 2001, Taken from www.canb.uscourts.gov

Aron M. Oliner Andrew N. Chau Bank One 900 Corporate Trust Administration Buchalter, Nemer, Fields & 1177 West Loop South, Suite Houston, Texas 77027 Atn: Janice Ott Rotunno, Mail Younger Code ILl-0126 333 Market Street I Bank One Plaza San Francisco, California 94105 Angela M. Alioto Law Offices of Joseph L. Alioto Chicago, IL 60670-0126 and Angela Alioto Adam A. Lewis Robert G. Bussa, Jane Bek Morrison & Foerster 700 Montgomery Street San Francisco, California 94111 Bank One, NA 425 Market Street, 33rd Floor Energy & Utilities San Francisco, California 94105 Arlen Orchard Mail Code IL 1-0363 Sacramento Municipal Utility Bank One Plaza Adolfo M. Corona Chicago, IL 60670 Dowling, Aaron & Keeler District 6201 S. Street, Mail Stop B408 6051 North Fresno Street, Suite 200 NA Sacramento, California 95817 Bankers Trust Co. of California, Fresno, California 93710 Structured Finance Group Arnold Wallenstein Atn: Peter Becker Adrienne Vadell Sturges 4 Albany St., 10th Floor Services, Inc. ThermoEcotek Corporation Sodexho Marriott New York" NY 10006 9801 Washingtonian Boulevard, 245 Winter Street, Suite 300 Waltham, MA 02154 12th Floor Bankers Trust Co. Gaithersburg, MD 20878 Aron Mark Oliner Trustee Corp. Trust Safet Kalabovic Kolod Buchalter, Nemer, Fields & Alan 4 Albany Street, 4th Floor & Singer LLP Younger, A Professional Moses New York, NY 10006 1301 Avenue of the Americas, 40th Corporation Floor 333 Market Street, 29th Floor San Francisco, California 94105 Bankers Trust Company New York, NY 10019 Corporate Trust Services Attn: Safet Kalabovic Yudowsky B.C. Barmann Alan Z. 4 Albany Street, 4th Floor Wells Senior County Counsel Anne E. New York, NY 10006 Stroock & Stroock & Lavan LLP 1115 Truxtun Avenue, 4th Floor Bakersfield, California 93301 2029 Century Park East, Suite 1800 Ben Whitwell Los Angeles, California 90067 B.C. Barmann, Sr. Whitwell & Emhoff LLP County Counsel 202 N. Canon Drive Alex Makler Beverly Hills, California 90210 Calpine Greenleaf, Inc. Attn: Jerri S. Bradley, Deputy P.O. Box 11749 1115 Truxtun Avenue, Fourth Floor Bakersfield, California 93301 Bennett G. Young Pleasanton, California 94588 LeBoeuf, Lamb, Greene & MacRae, LLP S. Coil Bank of America National Trust and Alexis One Embarcadero Center, Suite 400 Simpson Thacher & Bartlett Savings Association San Francisco, California 94111 3330 Hillview Avenue Attn: Peggie Sanders 1850 Gateway Boulevard Palo Alto, California 94117 Director Concord, CA 94520 Beth Smayda, MBIA Insurance Corporation Allan H. Ickowitz 113 King Street M. Balbin Bank of America Donna Armonk, New York 10504 Nossama, Guthner, Knox & Elliott Attn: Clara Strand 555 South Flower Street 445 South Figueroa Street, 31 st Bill Wong Floor Mail Code CA9-706-11-21 AMROC Investments, LLC Los Angeles, California 90071 Los Angeles, CA 90071 535 Madison Avenue, 15th Floor New York, NY 10022 Amy Hallman Rice Dorsey & Whitney LLP Pillsbury Center South 220 South Sixth Street Minneapolis, Minnesota 5540-1498

1-LA/593008.1 I BMO Nesbitt Burns Bruce R. Worthington California Public Utilities Attn: John Harche Sr. Vice PresidenJdGen'l Counsel Commission 700 Louisiana, Suite 4400 PG&E Corp. Alan Kornberg, Esq. Houston, TX 77002 One Market, Spear Tower, Rm 2426 Paul, Weiss, Rifkind, Wharton & San Francisco, California 94105 Garrison BNP Paribas 1285 Avenue of the Americas Attn: Mark Ranaud Bruce W. Leaverton New York, NY 100 19-6064 787 7th Avenue, 31si Floor Mary Jo Heston New York, NY 10019 Lane Powell Spears Lubersky LLP California Public Utilities 1420 Fifth Avenue, Suite 4100 Commission BNY Western Trust Company Seattle, WA 89101 Attn: General Counsel Attn: Rose Ruelos, Corp. Trust 505 Van Ness Avenue Administration Bryan Krakauer, Esq. San Francisco, CA 94102 550 Kearny St., Suite 600 Sidley & Austin San Francisco, CA 94108-2527 One First National Plaza California State Board of Chicago, IL 60603 Equalization BNY Western Trust Company PO Box 942879 Attn: Rose Ruelos, Corp. Trust Bryant Danner Sacramento, CA 94279-8063 Administration Southern California Edison 550 Kearny St., Suite 600 2244 Walnut Grove Ave. California State Lands Commission San Francisco, CA 94108-2527 Rosemead, CA 91770 Attn: James Frey 100 Howe Avenue, Suite 100 South BNY Western Trust Cahal B. Carmody Sacramento, California 95825 Attn: Mr. Todd Duncan Bank of Montreal 700 South Flower, 5th Floor 4400 Nations Bank Building Calpine Gilroy Cogeneration LP Los Angeles, CA 90017 700 Louisiana Stieet Robert Brown Houston, TX 77002 1400 Pecheco Pass Hwy, Gate 1 BP Energy Co Gilroy, California 95020 Attn: Louis Anderson California Farm Bureau Federation 501 Westlake Park Blvd 2300 River Plaza Drive Calpine Gilroy Cogeneration LP Houston, TX 77079 Sacramento, California 95833 Robert Brown Pennzoil Building Ken McClanahan California Independent System Op. 700 Milam Street, Suite 800 BP Energy Company Margaret A. Rosiker Houston, TX 77002 501 Westlake Park Boulevard P.O. Box 639014 Houston, Texas 77079 Folsom, CA 95630-9017 Calpine Greenleaf Inc. P.O. Box 3330 Brian L. Holman/Neil Millard California Independent System Yuba City, California 95992 Neil W. Rust/Jerry R. Bloom Operator Thomas E. Lauria/C. Randolph Attn: Margaret A. Rostker Calpine Greenleaf, Inc. Fishburn 151 Blue Ravine Rd. 5087 South Township Road White & Case LLP Folsom, CA 95630 Yuba City, California 95993 633 West Fifth Street, 19th Floor Los Angeles, California 90071 California Power Exchange Calpine Pittsburg Power Plant Attn: Lynn Miller Zahir Ahmadi Bruce Bennett, Esq. 1000 S. Freemont Ave., Bldg. A9 50 W. San Fernando St. Bennett J. Murphy, Esq. Alhambra, CA 91803-4737 San Jose, CA 95113 Hennigan Bennett & Dorman 601 South Figueroa St., Suite 3300 California Power Exchange Los Angeles, CA 90017 Attn: Lynn Miller 200 S. Los Robles Avenue, Ste 400 Pasadena, CA 91101-2482

I -LA'593008.1 2 Carl A. Eklund City of San Leandro Dale W. Mahon LeBoeuf, Lamb, Greene & MacRae, c/o Jeffrey H. Goldfien 9951 Grant Line Road LLP Meyers, Nave, Riback, Silver & Elk Grove, California 95624 125 West 55th Street Wilson New York, NY 10019 777 Davis Street, Suite 300 Dana Gordon San Leandro, California 94577 Quanta Services, Inc. Carla Batchler 1360 Post Oaks Blvd., Suite 2100 Trust Department City of St. Francis Houston, Texas 77056 Bank of Cherry Creek Attn: Steve Bjork 3033 East 1st Avenue P.O. Box 730 Daniel A. DeMarco Denver, Colorado 80206 St. Francis, MN 55070 David T. Graham Hahn Loeser & Parks LLP Catherine S. Krug Caroline Pitre 21 East State Street, Suite 1050 National City Bank of Indiana Coast Energy Canada Inc. Columbus, Ohio 43215 101 West Washington Street, Suite 530 8th Avenue S.W., Suite 920 655-South Calgary, Alberta Daniel D. Ganter, Jr. Indianapolis, Indiana 46255 Canada T2P 3S8 Barna, Guzy & Steffen, Ltd. 400 Northtown Financial Plaza Chaim J. Fortgang, Esq. Ruben Alonso Minneapolis, MN 55433 Richard G. Mason, Esq. Coast Energy Group, A Division of Wachtell, Lipton, Rosen & Katz Cornerstone Propane, L.P. Daniel H. Slate 51 West 52nd Street 1600 Highway 6, Suite 400 Deborah Fried-Rubin New York, NY 10019 Sugarland, TX 77478 Hughes Hubbard & Reed LLP One Battery Park Plaza First Mortgage Bondholders) Hans 0. Saeby New York, NY 10004 Chevron U.S.A. Production Co. Cook Inlet Energy Supply P.O. Box 840659 10100 Santa Monica Bl., 25th Floor Daniel H. Slate Dallas, TX 75284-0659 Los Angeles, CA 90067 Noah Graff Hughes Hubbard & Reed LLP Christine C. Yokan Craig H. Millet 350 South Grand Av., 36th Floor General Electric Capital Business Gibson Dunn & Crutcher LLP Los Angeles, California 90071 Asset Funding Corp. Jamboree Center 10900 N.E. 4th Street, Suite 500 4 Park Plaza, Suite 1400 Daniel M. Pelliccioni Bellevue, Washington 98004 Irvine, California 92614 Julia W. Brand Katten Muchin Zavis Christopher Beard D. Cameron Baker 1999 Ave. of the Stars, Suite 1400 Beard & Beard City Attorney Los Angeles, California 90067 306 N. Market Street City and County of San Francisco, Frederick, MD 21701 City Hall, Room 234 Daniel P. Ginsberg 1 Dr. Carlton B. Goodlett Place Howard S. Beltzer Christopher R. Belmonte San Francisco, California 94102 Evan Hollander Satterlee Stephens Burke & Burke J. Christopher Shore LLP D. Cameron Baker White & Case LLP 230 Park Avenue City Attorney 1155 Avenue of the Americas New York, NY 10169 L. Joanne Sakai New York, NY 10036 Theresa Mueller Chritine C. Yokan City Hall, Room 234 Daniel R. Murray General Electric Capital Business One Dr. Carlton B. Goodlett Place Vincent E. Lazar Asset Funding Corporation San Francisco, California 94102 Jenner & Block, LLC 10900 N.E. 4th Street, Suite 500 One IBM Plaza Bellevue, Washington 98004 DACA V, LLC Chicago, IL 60611 Attn: Julie Bubnack 2120 W. Washington Street San Diego, California 92110

I-LA1593008.1 3 Daren R. Brinkman David Neale Tony Yoseloff Brinkman & Associates Levene, Neale, Bender, Rankin & DK Acquisition Partners, L.P. 800 Wilshire Boulevard, Suite 950 Brill LLP c/o M.H. Davidson & Co. Los Angeles, California 90017 1801 Avenue of the Stars, Ste. 1120 885 Third Avenue, Suite 3300 Los Angeles, California 90067 New York, NY 10022 David A. Burns Baker Botts LLP David R. Frank Don Gaffney One Shell Plaza Office of the City Attorney Snell & Wilmer LLP 910 Loiusiana 411 Main street One Arizona Center Houston, TX 77002 P.O. Box 3420 400 East Van Buren Chico, California 95927 Phoenix, AZ 85004 David A. Gill Richard K. Diamond David S. MacCuish Douglas M. Butz Danning, Gill, Diamond & Kollitz Andrew M. Gilford Butz, Dunn, DeSantis & Bingham LLP Weston, Benshoof, Rochefort 101 West Broadway, Suite 1700 2029 Century Park East, 3rd Floor 444 South Flower Street, Forty San Diego, California 92101 Los Angeles, California 90067 Third Floor Los Angeles, California 90071 Douglas M. Foley David Boies McGuirewoods LLP Christopher A. Boies David T. Biderman 9000 West Main Street Philip C. Korologos Perkins Coie LLP Norfolk, Virginia 23510 Boies, Schiller & Flexner LLP 1620 26th Street, Sixth Floor 80 Business Park Drive, Suite 110 Santa Monica, CA 90404-4013 Douglas P. Bartner Armonk, New York 10504 Andrew Tenzer Department of Justice Shearman & Sterling David Fallek U.S. Attorney's Office 599 Lexington Avenue McCutchen, Doyle, Browne & 450 Golden Gate Avenue New York, NY 10022 Enersen LLP Box 36055 Three Embarcadero Center San Francisco, CA 94102 Duane H. Nelsen San Francisco, California 94111 GWF Power Systems Co., Inc. Deutsche Bank AG 4300 Railroad Ave. David Gould New York Branch Pittsburgh, CA 94565-6006 McDermott, Will & Emery Atn: E.S. Medla 2049 Century Park East, 34th Floor 31 West 52nd Street Dulcie D. Brand Los Angeles, California 90067 New York, NY 10019 Ricky L. Shackelford James L. Poth David H. Ford Deutsche Bank AG Jones Day Reavis & Pogue David Kovner New York Branch 555 West Fifth Street, Suite 4600 OZ Management LLC Attn: John Quinn Los Angeles, California 90013 9 West 57th Street, 39th Floor 31 West 52nd Street New York, NY 10019 New York, NY 10019 Marketing] Dulcie D. Brand David J. Hankey Deutsche Bank Ricky L. Shackelford Gohn, Hankey & Stichel LLP New York Branch James L. Poth Suite 1520, The Fidelity Building Attn: Will Christoph Jones Day Reavis & Pogue 2 10 North Charles Street 130 Liberty Street, 31 st Floor 555 West Fifth Street, Suite 4600 Baltimore, Maryland 21201 New York, NY 10006 Los Angeles, California 90013

David L. Ronn Diane C. McKenzie Steve Barron Mayer, Brown & Platt Office of the Treasurer and Tax Dynergy Canada Marketing & 700 Louisiana, Suite 3600 Collector Trade Houston, Texas 77002 County of San Bernardino 350 - 7th Avenue S.W. 172 W. Third Street, 1st Floor Calgary, Alberta San Bernardino, California 9241i5 Canada, T2P 3N9

I-LA/593008.1 4 Steve Barron Ellen K. Wolf George O'Brien Dynergy Marketing & Trade Michael S. Abrams Vice President and Treasurer 1000 Louisiana Street, Suite 5800 Gilchrist & Rutter Intecom, Inc. Houston, Texas 77002 Wilshire Palisades Building 5057 Keller Springs Road 1299 Ocean Avenue, Suite 900 Addison, Texas 75001 E. Katherine Wells, Esq. Santa Monica, California 90401 Staff Counsel Geysers Power Company LLC South Carolina Department of Enron Canada Corporation Joe McClendon Health and Environmental Control 3500 Canterra Tower P.O. Box 11749 2600 Bull Street 400 3rd Ave. S.W. Pleasanton, CA 94588 Columbia, SC 29201-1708 Calgary, AB T2P 4H2 Canada Glenn M. Reisman EDAW, Inc. Two Corporate Drive Brodie Stephens, Esq. Estela 0. Pino P.O. Box 861 Corporate Counsel Cynthia E. Chisurn Shelton, CT 06484 753 Davis Street Pino & Associates San Francisco, California 94111 1260 Fulton Avenue Gordon P. Erspamer Sacramento, California 95825 Morrison & Foerster LLP Edward Curren 101 Ygnacio Valley Rd., Suite 450 The Babcock & Wilcox Company Evelyn H. Biery P.O. Box 8130 20 S. Van Buren Avenue Corestaff Services (California), Inc. Walnut Creek, California 94596 P.O. Box 351 Fulbright & Jaworski LLP Barberton, Ohio 44203 1301 McKinney, Suite 5100 Grant Kolling Houston, Texas 77010 City of Palo Alto Edward J. Tiedemann P.O. Box 10250 Kronick, Moskowitz, Tiedemann & Fernando De Leon Palo Alto, California 94303 Girard Attorney at Law 400 Capitol Mall, 27nd Floor California Energy Commission Gregory Clore Sacramento, California 95814 1516 9th Street, MS-14 Gnazzothill, A.P.C. Sacramento, California 95814 625 Market Street, Suite 1100 Edwin Berlin San Francisco, California 94105 Richard Wyron Franchise Tax Board Swidler Berlin Shereff Friedman, PO Box 942857 Cogen Co., and Sargent Canyon LLP Sacramento, CA 94257-2021 Cogen. Co.] 3000 K Street, N.W. Gregory W. Jones Washington, DC 20007 G. Larry Engel El Paso Merchant Energy Roberto J. Kampfner 1001 Louisiana, Suite 2754B El Paso Merchant Energy Gas LP Brobeck, Phleger & Harrison LLP Houston, Texas 77002 Darrel Rogers One Market 1001 Louisiana Street Spear Street Tower GWF Power Systems LP Houston, TX 77002 San Francisco, California 94105 4300 Railroad Ave. Pittsburg, CA 94565 John Harrison Gary P. Blitz El Paso Merchant Energy, L.P. Piper Marbury Rudnick & Wolfe H. Slayton Dabney 1010 Travis Street LLP McGuirewoods LLP Houston, Texas 77002 1200 19th Street, N.W. One James Center Washington, D.C. 20036 901 East Cary Street Elaine M. Seid Richmond, Virginia 23219 MePharlin, Sprinkles & Thomas Companies] LLP Geoffrey T. Holtz Harold L. Kaplan 10 Alamaden Boulevard, Suite 1460 Randy Michelson Jeffrey M. Schwartz San Jose, California 95113 McCutchen, Doyle, Brown & Mark F. Hebbeln Enersen, LLP Gardner, Carton & Douglas Three Embarcadero Center 321 North Clark Street, 34th Floor San Francisco, California 94111 Chicago, IL 60610

I -LA/593008. l 5 Subordinated Debenduxes Series .A Internal Revenue Service James E. Spiotto Heather Brown Spec Proc / Bankruptcy Ann Acker Williams Energy Marketing and 1301 Clay Street, Suite 1400 Chapman & Cutler Trading Co. Oakland, CA 94612 111 W. Monroe Street One Williams Center, Suite 4100 Chicago, IL 60603 Tulsa, OK 74172 Irving Sulmeyer Victor A. Sahn James L. Lopes Heinz Binder Frank V. Zerunyan Howard. Rice, Nemerovski, Robert G. Harris Sulmeyer, Kupetz, Baumann & Canady, Falk & Rabkin Binder & Malter Rothman Three Embarcadero Center, 7th Fl. 2775 Park Avenue 300 S. Grand Avenue, 14th Floor San Francisco, California 94111 Santa Clara, California 95050 Los Angeles, California 90071 James Mori Hodgson Russ LLP Isabelle M. Salgado Mori & Associates Attn: Stephen L. Ycnaty, Esq. General Attorney 317 Noe Street One M&T Plaza, Suite 2000 Pacific Telesis Group San Francisco, California 94111 Buffalo, New York 14203 2600 Camino Ramon, Rm. 4CS100 San Ramon, California 94583 James R. Thompson Howard J. Weg Idaho Power Company Peitzman, Ciassrnan & Weg J. Christopher Kennedy 1221 W. Idaho Street 1801 Ave. of the Stars, Suite 1225 Irell & Manella LLP Boise, Idaho 83702 Los Angeles, California 90067 1800 Avenue of the Stars, Suite 900 Los Angeles, California 90067 James S. Monroe Howard Susman Nixon Peabody LLP Duckor Spralding & Metzger J. Christopher Kohn Two Embarcadero Center, Ste. 2700 401 West A Street, Suite 2400 Tracy J. Whitaker San Francisco, California 94111 San Diego, California 92101 Brendan Collins Civil Division Jane Castle Hydee R. Feldstein Department of Justice Lehman Commercial Paper, Inc. Cynthia M. Cohen P.O. Box 875 3 World Financial Center Katherine A. Traxler Ben Franklin Station New York, NY 10285 Kelly Aran Washington_ D.C 20044 Paul, Hastings, Janofsky & Walker Janine D. Bloch Twenty Third Floor J. Christophet Kohn Preston Gates & Ellis LLP 555 South Flower Street Tracy J. Whitaker One Maritime Plaza, Suite 2400 Los Angeles, California 90071 Brendan Collins San Francisco, California 94111 Department of Justice I. Richard Levy 1100 L Street, N.W. Room 10004 Jeanne Miller Gerard, Singer & Levick, P.C. Washington, D.C. 20005 Regency Centers, L.P. 16200 Addison Road, Suite 140 Legal Department Addison, Texas 75001 Cogen LP, KES-Kingburg LP] 121 West Forsyth Street, Suite 200 J. Matthew Derstine Jacksonville, Florida 32202 Iathan T. Annand Roshka Heyman & DeWulf PLC Pacific Gas and Electric Company One Arizona Center Jeff St. Onge 77 Beale Street 400 East Van Buren St., Suite 800 c/o Greg Baumann San Francisco, California 94105 Phoenix, AZ 85004 Bloomberg News 345 California Street Attn: Karl Butler James A. Reuben San Francisco. California 94104 ICC Energy Corporation David Silverman 302 N. Market Street, Suite 500 Reuben & Alter LLP Jeffrey D. Chansler Dallas, TX 75202-1846 235 Pine Street, Suite 1600 Empire Blue Cross Blue Shield San Francisco, California 94104 One World Trade Center, 28th Fl. Internal Revenue Service New York, NY 10048 Fresno, CA 93888

I-LAI593008.1 6 Jeffrey M. Wilson John G. Klaugberg Joseph A. Eisenberg, P.C. Saybrook Capital LLC LeBoeuf, Lamb, Greene & MacRae Victoria S. Kaufman 303 Twin Dolphin Drive, Suite 600 125 West 55th Street Jeffer, Mangels, Butler & Marmaro Redwood City, California 94065 New York, NY 10019 2121 Ave. of the Stars, 10th Floor Los Angeles, CA 90067 Jeffrey N. Rich John P. Dillman Kirkpatrick & Lockhart Linerbarger Heard Goggan Blair Joseph J. Smolinski 1251 Ave. of the Americas, 45th Fl. Graham Pena & Sampson, LLP Chadbourne & Parke LLP New York, NY 10020 P.O. Box 3064 30 Rockefeller Plaza Houston, TX 77253 New York, NY 10112 Jeffry A. Davis Gray Cary Ware & Freidenrich LLP John P. Hurt Juan C. Basombrio 401 B Street, Suite 1700 The Babcock & Wilcox Company Kent J. Schmidt San Diego, California 92101 20 S. Van Buren Avenue Dorsey & Whitney LLP P.O. Box 351 650 Town Center Drive, Suite 1850 Jennifer A. Merlo Barberton, Ohio 44203 Costa Mesa, California 92626 Bradley E. Pearce Moore & Van Allen, PLLC John P. Melko Julia Hill, County Counsel Bank of America Corporation Ctr. Wendy K. Laubach County of Santa Cruz 100 North Tryon Street, Floor 47 Verner, Liipfert, Bernhard, Office of the Treasurer - Tax Charlotte, North Carolina 28202 McPherson and Hand Collector 1111 Bagby, Suite 4700 701 Ocean Street, Room 505 Jeremiah F. Hallisey Houston, TX 77002 Santa Cruz, California 95060 Hallisey & Johnson 300 Montgomery Street, Suite 538 John Robert Weiss Kaaran E. Thomas San Francisco, California 94104 Katten Muchin Zavis Beckley Singleton Chtd. 525 West Monroe Street, Suite 1600 530 Las Vegas Boulevard South Joann Noble-Choder Chicago, IL 60661 Las Vegas, NV 89101 Viacom, Inc. 11 Stanwix Street John T. Hansen Karen Keating Jahr, County Pittsburgh, PA 15222 Deborah H. Beck Counsel Nossaman, Guthner, Knox & Elliott Michael A. Ralston, Assistant JoAnn P. Russell 50 California Street, 34th Floor County Counsel Duke Energy Trading and San Francisco, California 94111 1815 Yuba Street, Suite 3 Marketing LLC Redding, California 96001 10777 Westheimer, Suite 650 Jonathan Rosenthal Houston, TX 77042 Jon P. Schotz Kathryn A. Coleman Jonathan Y. Thomas Desmond A. Coleman Jody A. Meisel Saybrook Capital LLC Gibson, Duan & Crutcher LLP 2632 Larkin Street, Suite 0 401 Wilshire Boulevard, Suite 850 1 Montgomery St., Telesis Tower San Francisco, California 94109 Santa Monica, California 90401 San Francisco, California 94104

John A. Vos, Attorney Jonathan S. Storper KBC Bank 1430 Lincoln Avenue Hanson, Bridgett, Marcus, Viahos Attn: Daniel To San Rafael, CA 94901 & Rudy LLP 515 So. Figueroa St., Suite 1920 333 Market Street, Suite 2300 Los Angeles, CA 90071 John Chu San Francisco, California 94105 Corporate Counsel Law Group LLP Kelly Greene McConnell 417 Montgomery Street, 10th Floor Joseph A. Eisenberg, Esq. Givens Pursley LLP San Francisco, California 94104 Jeffer, Mangels, Butler & Marmaro 277 North 6th Street, Suite 200 2121 Avenue of the Stars, 10th Fl. Boise, ID 83702 John F. Shellabarger Los Angeles, CA 90067 Carriage Homes, Inc. Law Offices of John F. Shellabarger 928 Garden Street, Suite 3 Santa Barbara, California 93101

I-LA/593008.1 7 Windworks, Inc. Lawrence M. Jacobson Maid V. Luce Kenneth A. Brunetti Baker and Jacobson Duane Morris & Heckscher LLP Miller & Van Eaton, LLP 11377 W. Olympic Blvd., Ste. 500 4200 One Liberty Place 400 Montgomery Street, Suite 501 Los Angeles, California 90064 Philadelphia PA 191.03 San Francisco, CA. 94104-12 15 Lawrence P. Ebiner Marc Barreca Kenneth M. Greene H. Mark Mersel John R. Knall, Jr. Carruthers & Roth PA Morrison & Foerster Preston Gates & Ellis LUP Post Office Box 540 19900 MacArthur Boulevard 701 Fifth Avenue, Suite 5000 Greensboro, North Carolina 27402 Irving, California 92612 Seattle, WA 98104

Kenneth N. Klee Lillian G. Stenfeldt Marc Hirschfield David M. Stem Fred Hjelmeset Benjamin Hoch Michael L. Tuchin Gray Cary Ware & Freidenrich LLP Dewey Ballantine LLP Michelle C. Campbell 1755 Embarcadero 1301 Avenue of the Americas Klee, Tuchin, Bogdanoff& Stem Palo Alto, California 94303 New York, New York 10019-6092 1880 Century Park East, Suite 200 Los Angeles, California 90067 Linda Boyle Marc S. Cohen Time Warner Telecom Inc. Ashleigh A. Danker Kenneth N. Russak 10475 Park Meadows Dr., Suite 400 Kaye Scholer LLP Pillsbury Winthrop LLP Littleton, CO 80124 1999 Ave. of the Stars, Suite 1700 725 South Figueroa St., Suite 2800 Los Angeles, California 90067 Los Angeles, California 90017 Lori J. Scott Shasta County Treasurer - Tax Marilyn Morris Kenneth R. Reynolds, Esq. Collector Kenneth M. Miller Kenneth R. Reynolds, Inc. P.O. Box 991830 Morgan, Miller & Blair 2020 Hurley Way, Suite 210 Redding, California 96099 1676 No California Blvd., Ste. 200 Sacramento, CA 95825 Walnut Creek, California 94596 Lynne Richardson Kevin K. Haah Air Products and Chemicals Inc. Marimargaret Webdell Ervin, Cohen & Jessup LLP Business Servces A6328 Sacramento County Department of 9401 Wishire Boulevard, 9th Floor 7201 Hamilton Boulevard Finance Beverly Hills, California 90212 Allentown, PA 18195 700 H Street, Room 1710 Sacramento, California 95814 Kimberly S. Winick M. David Minnick Mayer, Brown & Platt Pillsbury Winthrop LLP Mark A. Speiser 350 S. Grand Avenue, 25361 Floor 50 Fremont Street Stroock & Stroock & Lavan LLP Los Angeles, California 90071 San Francisco, Califonia 94105 180 Maiden Lane New York, NY 10038 Kjehl T. Johansen M. Freddie Reiss Legal Division PricewaterhouseCoopers LLP Mark C, Ellenberg Office of City Attorney 400 South Hope Street Cadwalader, Wickersham & Taft Department of Water and Power Los Angeles, California 90071 1201 F Street N.W., Suite 1100 P.O. Box 51111, Suite 340 Washington, D.C. 20004 Los Angeles, California 90051 M.O. Sigal Jr Simpson Thatcher & Bartlett Mark Finnemore Larren M. Nashelsky 425 Lexington Avenue Internal Revenue Service Morrison & Foerster LLP New York, NY 10017 Small Business/Self-Employed 1290 Avenue of the Americas Division Counsel New York, NY 10104 Madison S. Spach, Jr. 160 Spear Street, 9th Floor Spach & Associates, P.C. San Francisco, California 94105 Laurence M. Frazen 4675 MacArthur Court, Suite 550 Stephen S. Sparks Newport Beach, California 92660 Bryan Cave 1200 Main Street, Suite 3500 Kansas City, Missouri 64105

1-LA/593008.1 8 Mark Gorton MBJA Insurance Corporation Michael H. Ahrens Mary E. Olden Attn: IPM-PCF Terrence V. Ponsford Todd M. Bailey 113 King Street Kimberly S. Fineman McDonough, Holland & Allen Armonk, NY 10504 Ori Katz 555 Capitol Mall, Ninth Floor Sheppard, Mullin, Richter & Sacramento, California 95814 Melanie Fannin Hampton General Counsel 4 Embarcadero Center, 17th Floor Martha E. Romero Senior Vice President & Secretary San Francisco, California 94111 Law Offices of Martha E. Romero 2600 Camino Ramon, Rm 4CS 100 7743 South Painter Avenue, Suite A San Ramon, California 94583 Michael Hamilton Whittier, California 90602 PricewaterhouseCoopers LLP Mellon Bank, N.A. 1301 Avenue of the Americas Martin A. Martino Attn: L. Scott Sommers New York, NY 10019 Castle Companies 400 So. Hope Street, 5th Floor 12885 Alcosta Boulevard, Suite A Los Angeles, CA 90071-2806 Michael J. Blumenfeld San Ramon, California 94583 Michael J. Blumenfeld Merle C. Meyers One Kaiser Plaza, Suite 1675 Martin G. Bunin Katherine D. Ray The Ordway Building Craig E. Freeman Goldberg, Stinnett, Meyers & Davis Oakland, California 94612 Thelen, Reid & Priest LLP 44 Montgomery Street, Suite 2900 40 W. 57th Street, 26th Floor San Francisco, California 94104 Michael L. Tuchin New York, NY 10019 David M. Stem Merrill Lynch Michelle C. Campbell Martin L. Fineman Attn: Ahi Aharon Klee, Tuchin, Bogdanoff & Stern David Wright Tremaine LLP World Financial Ctr., North Tower 1880 Century Park East, Suite 200 One Embarcadero Center, Suite 600 250 Vesey Street, 10th Floor Los Angeles, California 90067 San Francisco, California 94111 New York, NY 10281-1310 Michael Morris Martin L. Nelson Michael A. Berman Hennigan, Bennet & Dorman Kawana Springs, Inc. Securities and Exchange 601 S. Figueroa Street, Suite 3300 2880 Cleveland Avenue, Suite 8 Commission Los Angeles, California 90017 Santa Rosa, California 95403 450 5th St., N.W. (Mail Stop 0606) Washington, D.C. 20549 Michael P. Shuster, Esq. Martin Marz Lawrence E. Oscar, Esq. BP Amoco Michael A. Rosenthal Hahn Loeser & Parks LLP P.O. Box 3092 Keith D. Ross 3300 BP Tower, 200 Public Square Houston, Texas 77079 Gibson Dunn & Crutcher LLP Cleveland, OH 44114-2301 2100 McKinney Ave., Suite 1100 Mary Ann Kilgore Dallas, TX 75201 Michael R. Enright General Attorney Robinson & Cole LLP Union Pacific Railroad Company Michael B. Lubic 280 Trumbull Street 1416 Dodge Street, Room 830 McCutchen Doyle Brown & Hartford, CT 06103 Omaha, Nebraska 68179 Enersen LLP 355 S. Grand Avenue, Suite 4400 Michael Rochman Mary B. Holland Los Angeles, California 90071 School Project for Utility Rate Financial Consultant Reduction Salomon Smith Barney Michael F. O'Friel 1430 Willow Pass Road, Suite 240 1111 Superior Ave. Suite 1800 Wheelabrator Technologies, Inc. Concord, California 94520 Cleveland, Ohio 44114-2507 4 Liberty Lane West Hampton, NH 03842 Michael V. McIntire Matt Holley McIntire Law Corporation Lodestar Corporation Michael Friedman Post Office Box 1647 Two Corporation Way Richard Spears Kibbe & Orbe 41191 Big Bear Boulevard Peabody, MA 01960 One Chase Manhattan Plaza Big Bear Lake, California 92315 New York, NY 10005

1-LA/593008. I 9 Mike K. Nakagawa Nanette D. Sanders Paul M. Bartkiewicz Nakagawa & Rico Sarah E. Petty Joshua M. Horowitz 2335 Capitol Oaks Drive, Suite 130 Snell & Wilmer LLP Bartkiewicz, Kronick & Shanahan Sacramento, California 95833 1920 Main Street, Suite 1200 1011 Twenty Second Street Irvine, California 92614 Sacramento, California 95816 Mike R. Jaske California Energy Commission Neil J. Rubenstein Peter J. Benvenutti 1516 Ninth Street, MS-22 Holly R. Shilliday Heller Ehrrman White & McAuliffe Sacramento, California 95814 Arter & Hadden LLP 333 Bush Street Two Embarcadero Center, 5th Floor San Francisco, California 94104 Mitchell A. Hardwood San Francisco, California 94111 David Fitton Peter J. Gurfein P. Schoenfeld Asset Mgmt., LLC Nelson E. Bahler Jeffrey C. Krause 1330 Ave. of the Americas, 34th Fl. The Grupe Company Gregory K. Jones New York, NY 10019 3255 W. March Lane, Suite 400 Akin, Gump, Strauss, Hauer & Feld Stockton, California 95219 2029 Century Park East, Suite 2600 Mitchell I. Sonkdin Los Angeles, California 90067 Lawrence A. Larose Office of the Treasurer and Tax King & Spalding Collector Peter R. Boutin 1185 Avenue of the Americas County of Merced Keesal, Young & Logan New York, NY 10036 2222 M Street 4 Embarcadero Center, Suite 1500 Merced, CA 95340 San Francisco, California 94111 Mitchell Seider Kramer Levin Naftalis & Frankel Office of the U.S. Trustee Peter S. Clark II 919 Third Avenue Attn: Stephen Johnson Derek J. Baker New York, NY 10022 250 Montgomery Street, Suite 1000 Reed Smith, LLP San Francisco, CA 94104-3401 2500 Liberty Place Morgan Guaranty Trust Company 1650 Market Street of New York Oscar R. Cantu Philadelphia, PA 19103-7301 Attn: Carl J. Mehldau Weil, Gotshal & Manges LLP 60 Wall Street 701 Brickell Avenue, Suite 2100 Peter S. Munoz New York, NY 10260 Miami, Florida 33131 Gregg M. Ficks Crosby, Heafy, Roach & May Mr. David Boergers, Secretary Brian Redd Two Embarcadero Center Federal Energy Regulatory., Pancanadian Energy Services Inc. San Francisco, California 94111 Commission 1200 Smith Street, Suite 900 888 First Street, N.E., Room 1-A Houston, TX 77002 Philip Warden Washington, DC 20246 Pillsbury, Winthrop LLP Patricia S. Mar 50 Fremont Street N.R.G. Energy/Crocket Cogen Morrison & Foerster LLP San Francisco, California 94105 Keith Richards 425 Market Street, 33rd Floor 5820 B Street, Suite 2740 San Francisco, CA 94105-2482 Phillip E. Tatoian San Diego, California 92121 Asplundh Tree Expert Co. Paul C. Lacourciere 708 Blair Mill Road Nancy Hotchkiss Thelen, Reid & Priest LLP Willow Grove, Pennsylvania 19090 Trainor Robertson 101 Second Street, Suite 1800 701 University Avenue, Suite 200 San Francisco, California 94105 R. Dale Ginter Sacramento, California 95825 Downey, Brand, Seymour & Paul J. Pantano, Jr. Rohwer LLP Nancy Newman McDermott, Will & Emery 555 Capitol Mall, 10th Floor Steinhart & Falconer LLP 600 13th Street, N.W Sacramento, California 95814 333 Market Street, 32nd Floor Washington, D.C. 20005 San Francisco, California 94105

1-LA/593008.1 10 R. Paul Yetter Richard Hopp Robert E. Izmirian Yetter & Warden LLP 14416 Victory Boulevard, Suite 108 Aaron M. Oliner 600 Travis, Suite 3800 Van Nuys, California 91401 Buchalter, Nemer, Fields & Houston, Texas 77002 Younger Richard Purcell 333 Market Street Rabobank International Attn: Energy Supply San Francisco, California 94105 Attn: Gladys Montes Conectiv 4 Embarcadero Center, Suite 3200 800 Kings Street Robert F. Kidd San Francisco, CA 94111 P.O. Box 231 Yamamoto Kidd, LIP Wilmington, DE 19899 160 Franklin Street, Suite 206 Rabobank Nederland Oakland, California 94607 New York Branch Richard Stevens Attn: Brett Delfmo Avista Corp. Robert G. Harris 245 Park Avenue P.O. Box 3727 Corestaff Services (California), Inc. New York, NY 10 167-0062 Spokane, WA 99220 Binder & Malter 2775 Park Avenue Ralph B. Levy/James A. Pardo, Jr. Richard T. Peters Santa Clara, California 95050 Brian C. Walsh/Jeffrey E. Bjork Sidley Austin Brown & Wood King & Spalding 555 West Fifth Street, Suite 4000 Robert Jay Moore 191 Peachtree Street Los Angeles, California 90013 Paul S. Aronzon Atlanta, GA 30303 Milbank, Tweed, Hadley & McCloy Richard Wyron 601 South Figueroa Street Randolph L. Wu Swidler Berlin Shereff Friedman Los Angeles, California 90017 TURN 3000 K Street, NW, Suite 300 711 Van Ness Avenue, Suite 350 Washington, DC 20007 Robert M. Blum San Francisco, CA 94102 Thelen Reid & Priest LLP Robert A. Greenfield, Esq. 101 Second Street, Suite 1800 Ray Foianini Stutman, Treister & Glatt San Francisco, California 94105 Foianini Law Offices 3699 Wilshire Blvd., #900 109 Division Avenue West Los Angeles, CA 90010-2766 Robert S. Mueller Post Office Box 98823 United States Attorney Epharta, WA 98823 Robert Blodgett, Jr. Jocelyn Burton c/o H. Ann Liroff, Esq. Assistant United States Attorney Region IV Hannig Law Firm LLP Douglas K. Chang U.S. Nuclear Regulatory 2991 El Camino Real 450 Golden Gate Ave., 10th Floor Commission Readwood City, California 94061 San Francisco, California 94102 Ellis W. Mershoff Regional Administrator Robert C. Stokes Robert S. Mueller, III 611 Ryan Plaza Drive, suite 400 5851 San Felipe, Suite 950 United States Attorney Arlington, TX 76011-8064 Houston, Texas 77057 Jay R. Weill Assistant United States Attorney Richard A. Lapping Robert D. Albergotti Thomas MacKinson Louis J. Cisz, III Stacey Jernigan 160 Spear Street, Ninth Floor Thelen Reid & Priest LLP Scott W. Everett San Francisco, California 94105 101 Second Street, Suite 1800 Haynes and Boone LLP San Francisco, CA 94105-3601 901 Main Street, Suite 3100 Rock S. Koebbe Dallas, Texas 75202 5356 North Cattail Way Richard Blackstone Webber II Boise, ID 83703 2507 Edgewater Drive Robert Darby Orlando, FL 32804 Corestaff Services (California), Inc. Roger L. Efremsky Fulbright & Jaworski LLP Austin P. Nagel Richard C. Josephson 865 South Figueroa, 29th Floor Law Offices of Efremsky & Nagel Stoel Rives LLP Los Angeles, California 90017 5776 Stoneridge Mall Rd, Suite 360 900 SW Fifth Avenue, Suite 2600 Pleasanton, California 94588 Portland, OR 97204

I -LA/593008.1 11 Roi Chandy Sertling Koch State of California Teachers Insurance and Annuity TransAlta Energy Mktg (U. S.) Lic. Office of the Attorney General Assoc. of America Box 1900 Station "M" 455 Golden Gate Ave., Suite 11000 730 Third Avenue 110-12th Avenue, SW San Francisco, CA 94102-3664 New York, NY 10017 Calgary, Alberta T2P 2MI State of California Roland Pfeifer Seth A. Ribner Office of the Attorney General Office of the City Attorney Simpson Thatcher & Bartlett PO Box 94255 1500 Warburton Avenue 10 Universal City Plaza, Suite 1850 Sacramento, CA 94244-2550 Santa Clara, California 95050 Universal City, California 91608 Stephanie Nolan Deviney Ronald L. Miller Sharyn B. Zuch Brown & Connery LLP Rogers and Miller Wiggin & Dana 360 Haddon Avenue 720 Southpoint Blvd, Suite 205 One CityPlace, 34th Floor P.O. Box 539 Petaluma, California 94954 185 Asylum Street Westmont, NJ 08108 Hartford, CT 06103 Rosanne Thomas Matzat Stephen C. Becker Hahn & Hessen LLP Sheryl Gussett Becker Law Office 350 Fifth Avenue. Suite 3700 Reliant Energy, Inc. P.O. Box 192991 New York, NY 10118 1111 Louisiana, 43rd Floor San Francisco, California 94119 Houston, TX 77002 S. Jack Chevlen Stephen Shane Stark, County Law Offices of S. Jack Chevlen Sierra Pacific Industries Counsel 5902 Deerland Court File #51950 Enrique R Sanchez, Si. San Jose, California 95124 San Francisco, California 94160 County of Santa Barbara 105 E. Anapamu Street, Suite 201 Sandra W. Lavigna Jim Nakata Santa Barbara, Califormia 93101 Sarah D. Moyed Southern California Gas Company Securities Exchange Commission 555 W. Fifth St., GT24E1 Steve G. F. Polard 5670 Wilshire Blvd., 11th Fl. Los Angeles, CA. 90913-1000 Perkins Coie LLP Los Angeles, CA 90036 1620-26th Street, Sixth Floor Stan T. Yamamoto Santa Monica, California 90404 Scott C. Clarkson Eileen M. Teichert Eve A. Marsella City of Riverside Steve J. Reisman Clarkson, Gore & Marsella City Attorney's Office Curtis, Mallet-Prevost, Colt & 3424 Carson Street, Suite 350 City Hall, 3900 Main Street Mosle LLP Torrance,California 90503 Riverside, California 92522 101 Park Avenue New York, NY 10178 Scott 0. Smith Stanley E. Pond Buchalter, Nemer, Fields & Winchell & Pond Steven H. Felderstein, Esq. Younger 1700 S. El Canino Real, Suite 506 Felderstein, Willoughby & Pascuzzi 601 S. Figueroa Street, Suite 2400 San Mateo, California 94402 400 Capital Mall, Suite 1450 Los Angeles, California 90017 Sacramento, CA 95814-4434 State of California EDD Secretary of Treasury PO Box 826880 Steven J. Stanwyck, Esq. 15th & Pennsylvania Avenue Sacramento, CA 94280 The Stanwyck Firm, APC Washington, D.C. 20549 10354 Wilshire Blvd., Suite 4 State of California Los Angeles, California 90024 Sempra Energy Trading Corp. Dept. of Water Resources Tony Ferrajina c/o Chief- Energy Division Steven M. Abramowitz 58 Commerce Drive Attn: Dan Herdocia Vinson & Elkins LLP Stamford, CT 06902 1416 9th Street, Room 1640 666 Fifth Avenue, 26th Floor Sacramento, CA 958!4 New York, NY 10103

1-LA/593008.1 12 Steven M. Basha The Toronto Dominion Bank Tony 0. Hemming County Counsel Attn: F.B. Hawley Texaco Legal Department Attn: Stephen B. Nocita, Sr. Deputy 909 Fannin, Suite 1700 1111 Bagby Street 625 Court Street, Room 201 Houston, TX 77010 Houston, TX 77002 Woodland, California 95695 Theodor C. Albert, Esq. Jeff Shorter Steven M. Bunkin Michael J. Weiland, Esq. TXU Energy Trading Canada J. Aron & Company Albert, Weiland & Golden, LLP Limited 85 Broad Street 650 Town Center Drive, Suite 950 1717 Main Street New York, NY 10004 Costa Mesa, CA 92626 Dallas, Texas 75201

Steven M. Olson Thomas B. Walper, Esq. Jim Macredie Geary, Shea, O'Donnell & Grattan Munger, Tolles & Olson LLP TXU Energy Trading Corripany 37 Old Courthouse Square, 4th Fl. 355 South Grand Ave., Suite 3500 1717 Main Street Santa Rosa, California 95404 Los Angeles, CA 9007 1-1560 Dallas, Texas 75201

STS Hydropower Ltd (Kanaka) Thomas C. Walsh U.S. Nuclear Regflatory Mr. Mike Grahn BTM Capital Corporation Commission 300 West Washington St., Suite 801 125 Summer Street Attn: Document Control Desk Chicago, IL 60606 Boston, MA 02110 Washington, DC 20555-0001

Terrance L. Stinnett Thomas E. Lauria Josephine Libunao Miriam Khatiblou White & Case LLP U.S. Trust Company, National Goldberg, Stinnett Meyers & Davis First Union Financial Center Association 44 Montgomery Street, Suite 2900 200 South Biscayne Boulevard 1 Embarcadero Center, Suite 2050 San Francisco, California 94104 Miami, Florida 33131 San Francisco, CA 94111-3709

Bill Collier Thomas E. Lumsden US Bank, Corporate Trust Services Texaco Canada Petroleum Inc. Rocky Ho Attn: LaDonna Morrison 400 3 Avenue SW, #2034 PricewaterhouseCoopers LLP P.O. Box 64111 Calgary, Alberta 199 Fremont Street St. Paul, MN 55164-0111 Canada T2P 4H2 San Francisco, California 94105 Victor Waid Bill Collier Thomas M. Berliner Law Office of Victor Waid Texaco Natural Gas Inc. Duane Morris & Heckscher LLP 2625 Fair Oaks Boulevard, Suite 1 1111 Bagby Street 100 Spear Street, Suite 1500 Sacramento, Califomia 95864 Houston, Texas 77002 San Francisco, California 94105 Victoria Lang The Bank of New York Thomas MacKinson AT&T Corp. Attn: Michael Pitflick, Corp. Trust Internal Revenue Service 795 Folsom Street, 2nd Floor Administration Small Business/Self-Employed San Francisco, California 94107 101 Barclay Street- 21W Division New York, NY 10286 1301 Clay Street, Room 1400-S W. Austin Cooper Oakland, California 94105 James M. Gardener The Fuji Bank, Limited Cooper & Gardener Attn: Jonathan Bigelow Timothy F. Hodgdon 2535 Capitol Oaks Drive, Suite 100 333 So. Hope Street, 39th Floor Teachers Insurance and Annuity Sacramento, California 95833 Los Angeles, CA 90071 Assoc. of America 730 Third Avenue Walter F. McArdle, Esq. The Sumitomo Bank Ltd. New York, NY 10017 Spain & Gillon, LLC Attn: Al Galluzzo The Zinszer Building 777 S. Figueroa Street, Suite 2600 TJ Vigliotta 2117 Second Avenue North Los Angeles, California 90017 Lazard Frires & Co. LLC Birmingham, Alabama 35203 30 Rockefeller Plaza, 60th Floor New York, NY 10020

1-LA/593008.1 13 Wendy L. Hagenau Kelly Knowlton Terence J. Keeley Powell, Goldstein, Frazer & Williams Energy Marketing & 1289 Lincoln Road Murphy Trading Co. (Canada) P.O. Box 1850 191 Peachtree St., N.E., 16th Floor One Williams Center, 19th Floor, Yuba City, California 95992 Atlanta, GA 30303 Department 558 P.O. Box 2848 K. Bailey Wheelabrator Shasta Energy Co. Tulsa, Oklahoma 74101 Bankruptcy Specialist 20811 Industry Rd. General Motors Acceptance Anderson, CA 96007 Zack Starbird Corporation Mirant Corporation P.O. Box 173928 William Bates III 1155 Perimeter Center West Denver, CO 80217 McCutchen, Doyle, Brown & Atlanta, GA 30338 Enersen, LLP Derinda L. Messenger 3150 Porter Drive Zuckerman-Mandeville, Inc. Lombardo & Gilles, PLC Palo Alto, California 94304 P.O. Box 487 P.O. Box 2119 Stockton, California 95201 Salinas, CA 93902 William C. Morison-Knox Michael D. Prough lain Macdonald Michael P. Massad, Jr. Robert M. Forni, Jr. Macdonald & Associates Worsham forsythe Wooldridge LLC Morison-Knox Holden Melendez & 2 Embarcadero Center, Suite 1670 Energy Plaza, 30th Floor Prough, LLP San Francisco, California 94111 1601 Bryan Street 500 Ygnacio Valley Rd., Suite 450 Dallas, TX 75201 Walnut Creek, California 94596 Ned E. Dunphy Klein, DeNatale, Goldner, Cooper, William H. Kiekhofer III Rosenlieb & Kimball, LLP Yale K. Kim 4550 California Ave., Second Floor Steven E. Rich Bakersfield, California 93309 Kelley Drye & Warren LLP 777 S. Figueroa Street, Suite 2700 AMROC Investments, LLC Los Angeles, CA 90017 Attn: Sheri Levine 535 Madison Avenue, 15th Floor William J. Flynn New York, NY 10022 Neyhart, Anderson, Freitas, Flynn & Grosboll Walter J. Lack 44 Montgomery Street, Suite 2080 Engstrom, Lipscomp & Lack San Francisco, California 94104 10100 Ave. of the Stars, Suite 1450 Los Angeles, California 90067 William M. Goodman Ligi C. Yee Herbert Katz Topel & Goodman Kelly Lytton & Vann LLP 832 Sansome Street, Fourth Floor 1900 Ave. of the Stars, Suite 1450 San Francisco, California 94111 Los Angeles, California 90067

William M. Rossi-Hawkins Darcy M. Pertcheck Phillips, Lytle, Hitchcock, Blaine & Nixon Peabody LLP Huber 2 Embarcadero Center, 27th Floor 437 Madison Avenue, 34th Floor San Francisco, California 94111 New York, NY 10022 Jack L. Taylor William P. Weintraub 1289 Lincoln Road Pachulski Stang Ziehl Young & P.O. Box 1850 Jones Yuba City, California 95992 3 Embarcadero Center, Suite 1020 San Francisco, California 94111

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