CONTACTS 
0201 - PG&E Transm Contracts              415 973 3872 fax 972 0871
020101 - Ms. Pam Taheri,; Contract Manager, Rm 2334 Mail Code B23A =415 973 1660
020102 - Transmission Contracts =415 972 0871 (fax)

SUBJECTS
Gold Hill Horseshoe Upgrade
Final Conceptual Framework
Final Contract

0705 -    ..
0706 - Summary/Objective
0707 -
070701 - Followed up work at ref SDS 9 line 61, and discussion with Glenn at
070702 - ref SDS 10 line 52, and again this morning at ref SDS 11 line 39.
070703 -
070704 -
0708 -
0709 -
0710 - Discussion
0711 -
071101 - Advised of my discussion with Glenn, ref SDS 11 line 83.
071102 -
071103 - Pam is open to using Welch except she is concerned about the value of
071104 - capturing the record that underlies ultimate contract language.
071105 -
071106 - She feels the possible disclosure of information that could be harm-
071107 - ful to PG&E's interests, in litigation discovery may outweigh the
071108 - benefits of SDS in avoiding disputes in the first place, and support-
071109 - ing resolution in the event of litigation.  This was mentioned by
071110 - Chris Snyder in our meeting with Bill DeHart at ref SDS 5 line 168.
071111 -
071112 -     Comment
071113 -
071114 -     My goal today is to find out what PG&E is concerned about, so I
071115 -     did not present anything on the matter of discovery.
071116 -
071117 -     We can address this at a presentation to PG&E management.  It is
071118 -     really a legal question that should be determined by Glenn and
071119 -     the Law Department.
071120 -
071121 -
071122 - She requested a brochure on SDS, and list of Welch clients.
071123 -
071124 - Pam said the contract department exceeded its budget last year by
071125 - $1.5M, and so they are reluctant to hire consultants.
071126 -
071127 -    SDS must be presented in a way that shows how PG&E can reduce its
071128 -    costs.
071129 -
071130 -    Pam indicated she is not concerned about capturing the understand-
071131 -    ings that underlie the contract language developed for the SMUD
071132 -    contract, ref SDS 9 line 85, since she expects that any problems
071133 -    that arise implementing the contract will not be significantly
071134 -    costly to resolve.
071135 -
071136 -         Comment
071137 -
071138 -         If this is so, they why spend so much time in the first place
071139 -         plumbing for arcane scenarios to resolve in the contract. The
071140 -         only purpose of writing is to guide future conduct that would
071141 -         be material to each organization.
071142 -
071143 -
071144 -
071145 - She will discuss the idea of using SDS with Glenn.
071146 -
071147 -
071148 -
0712 -