CONTACTS 
0201 - PG&E Proj Mngmnt Transm Sys        415 973 6778 fax 8426
020101 - Mr. Bill DeHart, PMP
020102 - Project Manager, Room 1183B-V11C =415 973 5655 pger 510 810 3026
020103 - Project Management Group
0202 - PG&E Transm Contracts              415 973 3872 fax 972 0871
020201 - Ms. Pam Taheri,
020202 - Contract Manager, Rm 2334 Mail Code B23A =415 973 1660
020203 - Transmission Contracts =415 972 0871 (fax)
0203 - PG&E Building & Land Svcs.         415 973 8273 fax or 800...
020301 - Mr. Buck Jones;  =415 973 5874; Land Department
0204 - PG&E Trans Sys Engineering         415 973 3877 fax 9209
020401 - Mr. Randy L Hopkins, E.E.; Engineer; Rm 580, Mail Code F5C =415 973 6757

SUBJECTS
Gold Hill Horseshoe Upgrade, Sierra Contract
Schedule, Relocation, Qualify GO 131-D exemption
GO 131-D procedures and Impacts
Final SMUD and Sierra Contracts
Pre-Contract Expenses
Pre-Contract Payment Approval
Conceptual Framework

1509 -    ..
1510 - Summary/Objective
1511 -
151101 - Followed up work at ref SDS 7 line 45.  Scheduled work on schedule
151102 - Submitted ref DIT 1 line 30 to Pam, with cc to Bill, Randy and Buck.
151103 - Included the analysis at ref SDS 7 line 44.
151104 -
151105 - Got information from Pam that Sierra is willing to approve advance
151106 - payments, and they have agreed on conceptual framework.  Buck indi-
151107 - cates it may be possible to qualify for GO 131-D exemption because
151108 - qualification time may be extended.
151109 -
151110 -
151111 -
151112 -
1512 -
1513 -
1514 - Discussion with Bill
1515 -
151501 - Called Bill and advised I plan to submit analysis of GO 131-D issue
151502 - to Pam this morning, so she can comment to support our task later
151503 - today of updating the project schedule.
151504 -
151505 -     Talked to Bill later in the morning and advised of discussion
151506 -     with Buck on getting another 6 months to qualify for GO 131-D
151507 -     exemption.  Advised Buck is coming by to work on schedule oa
151508 -     1400.
151509 -
151510 -
1516 -
1517 -
1518 - 0845 Visit with Randy
1519 -
151901 - Delivered ref DIT 1 line 36, and explained it derives from our
151902 - discussions last week at ref SDS 6 line 65.
151903 -
151904 -
151905 -
151906 -
1520 -
1521 -
1522 - 0909 Visit with Pam
1523 -
152301 - Submitted ref DIT 1 line 36.  Explained substance.
152302 -
152303 - Pam said Sierra has indicated a willingness to front expenses to
152304 - expedite performance.  The question remains whether this is necessary
152305 - until after contracts are signed and PG&E has approved the project.
152306 -
152307 -     Discussions with Buck below, indicate it may now be practicle to
152308 -     qualify for GO 131-D exemption afterall, contrary to analysis
152309 -     submitted this morning, ref SDS 7 line 50.
152310 -
152311 -     Pre-Payment Approval from Sierra
152312 -
152313 -     It now appears desirable to obtain pre-payment agreement, since
152314 -     Sierra has indicated it is amenable to the procedure and accord-
152315 -     ing to Buck, the project has a reasonable chance to obtain since
152316 -     the period to qualify may be extended six (6) months.
152317 -
152318 -         Talked to Pam in late afternoon and she confirmed Sierra's
152319 -         willingess to pay in advance of having a signed contract.
152320 -         She seemed to indicate that if the money is to be used for
152321 -         GO 131-D work, then the letter has to be filed with FERC and
152322 -         it will take 90 days to get the approval.
152323 -
152324 -         She feels though that the money can be assigned to
152325 -         engineering and this does not require filing a notice with
152326 -         FERC, so that PG&E can get this money immediately to finance
152327 -         the project.
152328 -
152329 -
152330 -     Payment of Expenses Todate - $120K
152331 -
152332 -     We need budget from Randy to perform the early engineering work.
152333 -     Maybe we already have this.
152334 -
152335 -         Pam plans to get this budget from Randy today or tomorrow in
152336 -         order to support her letter to Sierra seeking payment of
152337 -         $120K for actual expenses paid todate.
152338 -
152339 -         This is separate from the pre-contract payment authority
152340 -         discussed above.
152341 -
152342 -
152343 - Advised Pam that Bill and I are going to work on the schedule this
152344 - afternoon.
152345 -
152346 - We need input from Buck to explain the details of GO 131-D, so we
152347 - can figure out if we need to proceed now in order to meet 1997
152348 - completion .
152349 -
152350 -     Buck is coming by today to work with us on the schedule.
152351 -
152352 -     [This was done at ref SDS 9 line 63.]
152353 -
152354 -
152355 -
152356 - Another issue is whether the $100K is in the project budget for GO
152357 - 131-D?  Bill can answer this question.
152358 -
152359 -     This question is answered by Buck below, that it is for
152360 -     performing the GO 131-D full process, not to get the exemption.
152361 -
152362 -     Now however, we may be able to qualify for exemption, since the
152363 -     period may be extended by 6 months.  Or, it may turn out the
152364 -     relocation qualifies for an exemption in the same way that the
152365 -     reconductoring portion of the work qualifies.
152366 -
152367 -
152368 -
152369 -
1524 -
1525 -
1526 - 1116 called Pam
1527 -
152701 - Advised of understandings with Buck and Bill re scheduling to qualify
152702 - for GO 131-D exemption with 6 month extension.
152703 -
152704 - We need to know if we can schedule engineering to begin after getting
152705 - pre-contract payment authority from Sierra, or do we need a task for
152706 - this in the schedule?
152707 -
152708 -
152709 -
152710 -
1528 -
1529 -
1530 - 1023 Buck Jones called
1531 -
153101 - He returned my calls at ref SDS 3 line 320, ref SDS 4 line 130, EM
153102 - sent at ref SDS 4 line 139, and discussions with Randy at ref SDS 6
153103 - line 215.
153104 -
153105 - Buck was in a training meeting all day Thursday, and so was out of
153106 - communication.  He was off on Friday, 941118.
153107 -
153108 - I advised of discussions with Pam above and intent to meet with Bill
153109 - to work on the schedule later today.
153110 -
153111 -
153112 - 6 Mnth Extension on GO 131-D
153113 -
153114 - Buck said he has been advised that the Judge assigned to oversee the
153115 - GO 131-D procedure may grant a 6 month extension to projects underway
153116 - in 1995.  He feels the relocation work will qualify because the poles
153117 - can be ordered in 1995 and they are the majority of the cost of the
153118 - work.
153119 -
153120 -      When we met in the afternoon, he indicated that getting such a
153121 -      ruling could take an extended period of time.  The Judge has
153122 -      been slow in issuing rulings of this kind.
153123 -
153124 -      He also advised though that we may get an exemption for the
153125 -      Relocation on similar grounds as the reconductor portion of the
153126 -      work, ref SDS 9 line 125.
153127 -
153128 -
153129 -
153130 -
153131 - Schedule Review
153132 -
153133 - We discussed the advantage of evaluating the potential to accomplish
153134 - this objective by meeting to review the schedule.  Buck will come by
153135 - this afternoon oa 1400 to meet with Bill and I to update the
153136 - schedule.
153137 -
153138 - We want to consider at what date the materials can be ordered in
153139 - 1995 with realistic activity durations, and then consider the need
153140 - for expedited durations.
153141 -
153142 -     Buck will join Bill and I later today to work on the schedule in
153143 -     light of the new understanding about being able to qualify for
153144 -     GO 131-D exemption.
153145 -
153146 -
153147 -
153148 - Budget Authority
153149 -
153150 - Buck wants to make sure he gets budget authority before Land commits
153151 - to commence work on GO 131-D filings that may cost $100K.
153152 -
153153 - If the exemption is granted, this expense may be saved.
153154 -
153155 - In any case, it appears Sierra is prepared to issue an interim
153156 - approval letter so PG&E can do its work, per discussion with Pam
153157 - above.
153158 -
153159 -
153160 -
153161 -
153162 -