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1) <br />Sempria <br />Energy Trading <br />May 2, 2000 <br />Mr. Nitin Modi <br />Electrical Engineering Manager <br />City of Colton <br />Civic Center <br />650 N. La Cadena Drive <br />Colton, CA 92324 <br />BY FACSIMILE (909-370-5132) AND BY COURIER <br />Dear MT. Modi: <br />Sempra Energy Trading Corp. <br />58 Commerce Road <br />Stamford, CT 06902 <br />Tel: 203 . 355 . 5000 <br />Fax: 203.355.5001 <br />The purpose of this letter is to set forth our plan to properly and professionally transition our <br />responsibilities as Scheduling Coordinator ("SC") over the coming months. It is our intention to have this <br />process largely completed by early October 2000 in accordance with the schedule set forth in this letter. <br />The process will begin with a letter to the CAISO advising them that effective 6/30/00 2400 hours (the <br />"Effective Date"), Sempra Energy Trading Corp. ("SETC") will no longer act as SC for the City of Colton <br />("Colton"). We envision this letter being sent by the middle of June 2000. Consequently, after the <br />Effective Date, any further power scheduling will be done by your new SC. The Effective Date concludes <br />the 27 month period, from April 1998 to June 2000 (the "Term"), in which SETC acted as Colton's SC. <br />We will work with both your new SC and the CAISO to ensure that there are no "hiccups" during this <br />changeover. <br />Given the CAISO billing system, we foresee sending you bills after the Effective Date for June 2000 <br />energy use as well as April 2000 — June 2000 CAISO ancillary service charges. We will continue, on your <br />behalf, to dispute the monthly GMC which the CAISO charges over this period. SETC expects to issue the <br />following invoices and reports over the July 2000 — September 2000 period (the "Transition Period") as set <br />forth below: <br />Third Party Energy Sales and Buys Report for June 2000 <br />Preliminary June 2000 Load Stacking Report <br />Bill for June 2000 Energy Purchases which includes: <br />Energy Purchases from SETC <br />Energy Sales to SETC <br />CALPX Fee for purchases from SETC <br />TO Debit charges by CALPX <br />Final Load Stacking Report for April 2000 <br />Ancillary Service Charges Detail Report for April 2000 <br />Transmission Losses Detail Report for April 2000 <br />Ancillary Services Billings to SCE Report for April 2000 <br />Actual Ancillary Services Bill for April 2000 which includes: <br />Xncillary Services <br />