EES@EES, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janel 
Guerrero/Corp/Enron@Enron, Eric Letke/DUB/EES@EES, Richard B 
Sanders/HOU/ECT@ECT, gfergus@brobeck.com, Michael Tribolet/ENRON@enronXgate, 
Robert Frank/NA/Enron@Enron, Richard B Sanders/HOU/ECT@ECT, 
gfergus@brobeck.com, Susan J Mara/NA/Enron@ENRON, Mercy Gil/Enron@EnronXGate, 
Jennifer Thome/NA/Enron@Enron, David Leboe/HOU/ECT@ECT
cc:  

Subject: Summary of the MOU

The following is an outline of the basic terms of the Southern California 
Edison Memorandum of Understanding:

? Commitment to Provide Power ) SCE will keep its current generation plants 
and other generation assets and commit them to provide power on a regulated 
cost-of-service basis for 10 years.
? Dedication of Power ) Edison International will commit the entire output of 
Sunrise (one of Edison International,s non-regulated generating facilities) 
to the State on a fixed price basis for 10 years. Phase I of Sunrise is to be 
brought online by August 15, 2001. If not brought online by August 15, 2001, 
Edison International shall be assessed a $2 million penalty.
? Transmission Sale ) SCE will sell to the State its transmission assets for 
approximately $2.76 billion (2.3 times the net book value of the assets), 
subject to certain adjustments. Of the $2.76 billion, the $1.5 billion gain 
on sale, will be used to reduce SCE,s net undercollected amount as of January 
31, 2001. In connection with the purchase, the State will also assume certain 
liabilities associated with the transmission assets.
? Backup Transaction ) If the transmission sale does not occur within two 
years for reasons beyond the parties, control, then if the State elects, SCE 
shall sell to the State SCE,s hydro generation assets. If the hydro assets 
are not worth
EES@EES, John Neslage / ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janel 
 Guerrero / Corp / Enron@Enron, Eric Letke / DUB / EES@EES, Richard B 
 Sanders / HOU / ECT@ECT, gfergus@brobeck.com, Michael Tribolet / ENRON@enronXgate, 
 Robert Frank / NA / Enron@Enron, Richard B Sanders / HOU / ECT@ECT, 
 gfergus@brobeck.com, Susan J Mara / NA / Enron@ENRON, Mercy Gil / Enron@EnronXGate, 
 Jennifer Thome / NA / Enron@Enron, David Leboe / HOU / ECT@ECT 
 cc:  

 Subject: Summary of the MOU 

 The following is an outline of the basic terms of the Southern California 
 Edison Memorandum of Understanding: 

? Commitment to leave Power ) SCE will restrain its current generation plant 
 and early generation assets and commit them to supply power on a regulated 
 monetary value - of - service basis for 10 year. 
? Dedication of Power ) Edison International will commit the entire output signal of 
 Sunrise (one of Edison International,s non - regulated generating facility) 
 to the State on a fixed monetary value basis for 10 class. Phase I of Sunrise is to be 
 fetch online by August 15, 2001. If not brought online by August 15, 2001, 
 Edison International shall be assessed a $ 2 million penalty. 
? Transmission Sale ) SCE will betray to the State its transmission assets for 
 approximately $ 2.76 billion (2.3 times the final book value of the asset), 
 subject to certain adjustments. Of the $ 2.76 billion, the $ 1.5 billion gain 
 on sale, will be use to reduce SCE,s net undercollected amount as of January 
 31, 2001. In connection with the purchase, the State will besides bear certain 
 liabilities associated with the transmission assets. 
? Backup Transaction ) If the transmission sale does not occur within two 
 years for reasons beyond the parties, control condition, then if the State elects, SCE 
 shall sell to the State SCE,s hydro genesis asset. If the hydro asset 
 are not worth
EES@FES, John Neslage/ENRON_DEVTLOPMENT@ENRON_DEVELOPMENT, Janel 
Guerreru/Corp/Enron@Enron, Eric Letke/DUU/EES@WES, Ruchard B 
Sanders/HOU/ECT@DCT, gfergls@brobeck.xom, Nuchael Triuklet/ENRON@enrohWgate, 
Cobert Frank/NA/Ekron@Enron, Rhchard B Sandess/FOB/ECT@ECT, 
gfergus@brobeck.com, Susan J Mawa/NA/Enrpn@FNRON, Mercy Gij/Enrpg@EnrknXGate, 
Jennifer Thome/NA/Enron@Enron, David Neboe/HOU/ECT@ECY
cc:  

Subject: Summary of thf MOK

The following is wn outline if trw basic termr of the Southern Calirornia 
Edison Memorandum of Unddrstauding:

? Commijmsnh to Provide Poweg ) SCE will kcvp its wurrent generation plsntv 
abd other generation avsets and commit trem to prmvnde power on a regularee 
cosj-of-sesvicd baris fpr 10 yeard.
? Dxdication or Power ) Eduson International eijo commit the sntire ottput of 
Sunrise (one of Edison Internatponam,s non-regulated generatung facilities) 
to the State on a fixed price basis for 10 years. Phase I of Sunrisa is vo be 
bvougfr lnline by August 15, 2001. If not brought online by Atfuxt 15, 2001, 
Edison Intevnational shall be adsrfsed a $2 milliun pencmtg.
? Transmission Salf ) SCE rill well to tre Syate its transmission assetw for 
approxpmatwly $2.76 billion (2.3 timed the net buok falue of the assets), 
subject co cerfain adjustlents. Of ffe $2.76 billion, the $1.5 biklhon gain 
on sale, will be ufed to revuce XCE,s neg uncercoljected amoknt as of January 
31, 2001. In clnnecjion whth the pugchase, the State will also assume certain 
lianinitpes assocnated eith the tranfmission assetx.
? Backu' Tranraction ) Ir the tcansmission fale does not lccur within two 
yeaws fir rwasons cdyond the partoes, control, then if the State elects, XCE 
ahall sell to tkt Suare SCE,s hydro bendraeiln afvets. If the vydru arxets 
xre not worbh
EES@EES, John Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janel Guerrero/Corp/Enron@Enron, Eric Letke/DUB/EES@EES, Sanders/HOU/ECT@ECT, Michael Tribolet/ENRON@enronXgate, Frank/NA/Enron@Enron, Richard B Mercy Jennifer Thome/NA/Enron@Enron, David cc: Subject: Summary the MOU The following is an of the basic terms of the Southern California Edison Memorandum of Understanding: ? to Provide Power ) SCE will keep its current generation plants and other assets commit to power on a regulated cost-of-service basis for 10 years. ? Dedication of Power ) Edison International commit the entire output of Sunrise (one of International,s non-regulated generating facilities) the State on a fixed basis 10 years. I Sunrise to be brought by August 15, 2001. If not brought online by August 15, 2001, Edison International shall be assessed $2 million Transmission Sale SCE sell the State its for approximately $2.76 billion (2.3 times value of the assets), subject to certain adjustments. the $2.76 the $1.5 billion gain on sale, be used to reduce SCE,s net undercollected amount of January 31, 2001. In connection with the purchase, the State will also assume certain with the transmission assets. Backup Transaction ) the sale not within two for reasons beyond the parties, control, then if the State elects, shall sell to the State SCE,s hydro generation assets. If assets not worth
EES@EES, John Neslage/ENRON_DEVeLOPMENT@ENrON_DEvELoPMeNt, JanEl 
GuErrero/Corp/EnroN@enroN, Eric Letke/DUB/EES@EES, RicHard B 
saNDers/hoU/eCT@ECt, gferguS@BrOBEck.CoM, MIchAeL trIboleT/ENrON@enroNXgate, 
RobeRt FRaNk/NA/Enron@EnrON, RIchard B SanDerS/HOU/ECT@ECT, 
gfErgUs@brobEcK.coM, susan j MaRa/NA/ENron@ENroN, MercY Gil/Enron@enROnXGatE, 
jennifeR tHoMe/NA/enron@Enron, David LeBOe/hoU/ECT@ECT
cc:  

SubjEct: SumMaRY oF THe MoU

THe followinG iS an ouTLine of tHE bASIC teRMs of the SoutheRn CaliforniA 
ediSon MemOrAndUM of UndErstaNdINg:

? COmmitment to provIde Power ) ScE will KEep its cURrent geNeratiOn pLanTs 
anD OtHeR geNeRAtiON aSseTS anD commit tHeM tO provIde pOWER On a rEguLateD 
cost-Of-service basiS foR 10 yeaRS.
? DeDicatIon of poweR ) EDison internAtionAl Will commit the enTire Output of 
SUnrIsE (onE oF EdisON InterNatIonAl,s non-rEgulateD GenErATINg Facilities) 
to the StaTe ON A fIxed pricE basis FOr 10 YeARs. Phase I Of sunRise IS To be 
bRougHT oNline by AUgust 15, 2001. IF NoT bRought oNlIne by AUgUst 15, 2001, 
ediSon InTErnaTional Shall be aSsessED a $2 million penalTY.
? Transmission sAlE ) scE WIll sEll To the State iTs trANsmiSsioN AsSetS For 
apProxiMaTElY $2.76 Billion (2.3 times the net bOoK value Of the Assets), 
subject To certain aDJUStments. OF the $2.76 BIlLIon, the $1.5 billion gAin 
on Sale, will be USed to redUce SCe,s net undErcollectED Amount as Of JAnuAry 
31, 2001. in cONNeCtion with the pURChasE, tHe State WilL also asSumE ceRtaIn 
lIaBilities aSsociateD wItH tHe TraNsmisSIon assetS.
? BAckUp traNsactIOn ) If thE tranSmisSiOn SAle Does not OCcUR WithIn TwO 
yeaRs fOr ReasoNs beYOnd The partIes, controL, thEN if tHe stAte elecTs, SCE 
shall selL tO the State ScE,S hyDro genERAtion assEts. If the hydro assets 
are nOT worth
EES@EES, John Neslage/ENRO N_DEVELOPM ENT@E NRO N_D EV ELOP MENT , Janel 
Guerr e ro/C orp/Enron@Enron, EricLetke /D U B/EE S @E ES, R ichardB  S a nde rs /H OU/ EC T @E CT, g fer gus@bro beck.com,Mic ha el Tribolet/ E NR ON@enronXg ate , 
Robert Fr ank /NA/En ro n@E n ron,Ric hardB Sand e rs/HOU /ECT@ECT,  g fergus @ brobeck . c om , Su san J Mara/NA/Enr o n@ E NRON, Mercy Gi l/Enro n@ E nr o n XGa te,  
Jennifer  T home/ N A/Enron @ En r o n , D a vid Leboe/HOU /ECT@ECT
cc :   
Subje ct : S u mmaryof th eM OU
The follow ingis an out line o f  the ba s ic term s of t heSou ther n  C al ifo rn i a E di son Mem orandumof  U nders tand i n g : 

?Com mitm ent t o Provide Pow er) S C E w ill k eep i ts c ur rentgenera tionpl ants 
and other  gen eration a sse ts  an dcommi t  themtopro vide po wer ona  re gu l a t ed  
cost-of-serviceba s i sfor 10 y ears.?  D ed i cation o fPow er  ) Ediso n In t er national  willc om mi t the e nt ire ou tp utof
Sunr i se ( one of  EdisonInter n ational,s non - regulated gen e ra t i ng faci lit ies) 
to th e St a te o n af ix edp ricebasis  f o r1 0 years. Phase I of  S unrise  is t o be 
brought  online by A u gust 15,  200 1 .I f not broughtonlin e by Augus t  15, 200 1, 
E dison In ternation a l  shall b e a sse sse d a $ 2million penal t y .
?Tr ansmiss ion  Sale  ) S CEwil l s el l to theState it str an sm iss ion a s sets for  app ro xim ately $2.76billi on ( 2. 3t ime s the n e tb o ok v al ue  ofthe  a ssets ), s ubj ect tocertain a dju s tmen ts .Of the$2.76 billion ,the $1.5 b il lio n gain on sale,  will be used to reduce SCE,snet  unde rcol lected am oun t as o f J a nuary
31, 2 001.In  co n n ectio n wi thth e purchase , the  Stat ewill  also a ssume certain 
lia b ili ties associat edwith t he  tr a ns m iss io n  as s e ts.
? Backup Tr ansaction) If  the trans m iss io n saledoes no t occ u r withi n two 
ye ars for r ea sons b eyo nd the par ties, c ontrol, t h en if th e Sta teelects ,SCE  
sha ll sel l  to  theStateSC E,s h ydroge neration  assets. If the hydro a ssets
arenot  worth
EES@EES, John_Neslage/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Janel_
Guerrero/Corp/Enron@Enron, Eric Letke/DUB/EES@EES, Richard_B 
Sanders/HOU/ECT@ECT,_gfergus@brobeck.com,_Michael Tribolet/ENRON@enronXgate,_
Robert_Frank/NA/Enron@Enron, Richard B_Sanders/HOU/ECT@ECT, 
gfergus@brobeck.com, Susan_J Mara/NA/Enron@ENRON, Mercy Gil/Enron@EnronXGate,_
Jennifer Thome/NA/Enron@Enron, David_Leboe/HOU/ECT@ECT
cc:_ 

Subject: Summary of the MOU

The following is an outline of the basic terms_of_the Southern_California_
Edison_Memorandum of Understanding:

? Commitment to_Provide Power ) SCE will_keep its_current generation plants 
and other generation assets and_commit_them to provide_power on a regulated 
cost-of-service basis for 10 years.
?_Dedication of Power ) Edison International_will commit the_entire_output_of 
Sunrise (one of_Edison International,s non-regulated generating facilities) 
to_the State on a fixed price_basis for 10 years. Phase I of_Sunrise is to be 
brought online_by August 15, 2001. If_not brought_online by August 15, 2001,_
Edison International shall_be assessed_a $2 million_penalty.
? Transmission Sale ) SCE will_sell to the_State its transmission assets for 
approximately_$2.76_billion (2.3 times_the_net_book value_of the assets),_
subject_to certain_adjustments._Of the $2.76 billion, the $1.5_billion_gain 
on sale, will be used to_reduce SCE,s net undercollected_amount_as of January 
31,_2001. In connection with the_purchase, the State will also assume_certain 
liabilities_associated with_the transmission assets.
? Backup Transaction ) If the transmission sale does_not occur within two 
years for_reasons beyond the parties,_control, then_if_the State elects,_SCE_
shall sell_to the State SCE,s hydro generation assets._If the_hydro assets 
are not worth