CONTACTS 
0201 - PG&E Proj Mngmnt Transm Sys        41
020101 - Mr. Bill DeHart, PMP
020102 - Project Manager, Room 1183B-V11C
020103 - Project Management Group
020104 - Ms. Cynthia Chang; Project Analyst
020105 - Project Management Group
020106 - Mr. Michael R. Emery
020107 - Project Manager, Room 1175B-V11C
020108 - Project Management Group
0202 - PG&E Transm Contracts              41
020201 - Ms. Pam Taheri,; Contract Manager, Rm 2334 Mail Code B23A
020202 - Transmission Contracts
0203 - PG&E Law Department                41
020301 - Mr. Glenn West Jr., Esq.;
0204 - PG&E Trans Sys Engineering         41
020401 - Mr. Randy Hopkins, E.E.; Engineer; Rm 580, Mail Code F5C
0205 - PG&E Building & Land Svcs.         41
020501 - Mr. Buck Jones;
0206 - Pacific Gas and Electric Company   91
020601 - Mr. Edward Bedwell;
020602 - Local Government Relations
020603 - Mr. Jim Penrose;
020604 - TM&C
0207 - PG&E Building & Land Svcs.         41
020701 - Ms. Trang Luu;
0208 - PG&E Building & Land Svcs.         41
020801 - Mr. Michael Herz;

SUBJECTS
Gold Hill Horseshoe Transmission Upgrad
Progress Meeting PG&E Team

0504 -
0504 -    ..
0505 - Summary/Objective
0506 -
050601 - Follow up ref SDS 2 0000.
050603 -  ..
050604 - Met today in PG&E's conference room at 525 Market, per agenda at
050605 - ref DRT 2 line 10.
050607 -  ..
050608 - New team members were introduced.  Work is pending on contracts.
050609 - Analysis of GO 131-D is needed for schedule and budget impacts,
050610 - including risks of delays and additional cost, if exemption is not
050611 - awarded.  Stakeholders may need notice of GO 131-D impacts.
050612 -
050614 -  ..
050615 - Follow Up
050616 -
050617 -   1.  Conceptual framework agreement with SMUD will be completed
050618 -       within the next several weeks.
050619 -
050620 -   2.  Work will commence on finalizing the SMUD contract and on the
050621 -       Sierra contract after the SMUD conceptual framework is
050622 -       completed.
050624 -        ..
050625 -   3.  GO 131-D procedures and impacts will be developed.
050627 -        ..
050628 -   4.  Project schedule and budget will be updated to apply GO 131-D
050629 -       anticipated impacts.
050631 -        ..
050632 -   5.  Consideration will be given to notifying City of Folsom if
050633 -       project will not be completed by 951231.
050635 -        ..
050636 -   6.  Consideration will be given to notifying Sierra Pacific of
050637 -       additional costs that may arise if an exemption from GO 131-D is
050638 -       not obtained, and that to obtain an exemption requires Sierra to
050639 -       advance reasonable and necessary funds to prepare an adequately
050640 -       supported filing.
050642 -        ..
050643 -   7.  Ed and Buck will investigate possible conflict with SMUD line
050644 -       construction underway in the proposed re-location corridor.
050646 -        ..
050647 -   8.  Ed will report on results of election in City Folsom, whether a
050648 -       bridge is approved for the right of way PG&E intends to use.
050649 -
050650 -
050651 -
050652 -
0507 -

SUBJECTS
Introductions

0603 -
060401 -  ..
060402 - Mike Emery Assigned Project Manager Replace Bill DeHart on Gold Hills
060403 -
060404 - Bill DeHart introduced Mike Emery as the new project manager, who will
060405 - be transitioning over the next month or so, from Bill who is leaving
060406 - under PG&E's current re-organization.
060407 -
060408 - Bill introduced Rod Welch who is providing management support using a
060409 - software program to organize project information, called SDS:
060410 -
060412 -                     ..
060413 -                    Schedule Diary System
060414 -
060415 -
060416 -    PG&E has used SDS on the CDWR project the past few months and has
060417 -    had good results.  CDWR has asked PG&E to continue using SDS on
060418 -    that project.
060419 -
060420 -       [On 941110 Mike requested install SDS on his computer.
060421 -       ref SDS 4 0001
060422 -
060424 -  ..
060425 - Rod explained SDS implements a management technology called POIMS:
060426 -
060428 -        ..
060429 -       Personal and Organizational Integrated Management Support
060430 -
060431 -
060432 -
060433 -   Automation is applied to capture the project record to test under-
060434 -   standings, provide uniform understandings among team members, and
060435 -   link Action Items into a Schedule to insure things get done and not
060436 -   overlooked.  SDS tracks E-mail and other documents, but in addition
060437 -   the user can "think about" what was done, why, and implications.
060438 -   This is called:  investing intellectual capital.  It pays off be-
060439 -   cause daily tasks are supported by instant access to the history of
060440 -   prior work so mistakes are reduced and things get done on time.
060441 -
060442 -
060444 -  ..
060445 - Pam Taheri is taking over for Bob Lambert on contract management.  She
060446 - indicated Gene West will continue to support the project.
060447 -
060448 -
060449 -
0605 -

SUBJECTS
Schedule, Bill DeHart

0903 -
090401 -  ..
090402 - Schedule Submitted Showing Compliance with GO 131-D Requirements
090403 -
090404 - Bill submitted and explained a current CPM schedule, which is file
090405 - ref OF 2.  It reflects project understandings prior to today with
090406 - respect to completing relocation work by 960101 in order to qualify
090407 - for GO 131-D exemption.  This means activity durations have been
090408 - shortened.
090410 -  ..
090411 - Team members should review the schedule and notify Mike of changes
090412 - and/or impacts that should be considered for the schedule.
090413 -
090414 -   [See discussion in next segment on updating schedule to reflect GO
090415 -   131-D research.]
090416 -
090417 -
090418 -
0905 -

SUBJECTS
Contract, SMUD, General
Conceptual, PG&E draft
Permits, GO 131-D
Interim Payment Agreements, from Sierra
Schedule, Contracts

2507 -
250801 -  ..
250802 - Sierra Contract Requires Conceptional Agreement Halsey Junction Line
250803 -
250804 - Pam said progress on the Sierra contract cannot proceed until after a
250805 - conceptual framework for agreement is reached with SMUD on relocating
250806 - PG&E's Halsey junction line, to a right of way controlled by SMUD.
250808 -  ..
250809 - Pam submitted a draft of PG&E's proposed letter to SMUD ref DRT 1
250810 - line 22, transmitting PG&E's most recent response to SMUD's proposed
250811 - language for a conceptual agreement, see ref OF 1 line 8.
250813 -  ..
250814 - Pam explained that after the conceptual agreement with SMUD is signed
250815 - by the parties, PG&E can then begin work on a final contract to
250816 - implement the conceptual framework with SMUD, and at the same time
250817 - will begin work on a contract with Sierra Pacific.
250819 -  ..
250820 - Pam reported PG&E has changed the design of the pole line by adding a
250821 - 2nd circuit to accommodate SMUD's demand for a consideration in
250822 - exchange for use of its right of way PG&E was able to make this change
250823 - and also reduce its estimate of project cost.
250825 -  ..
250826 - Randy Hopkins advised that an OSHA safety issue arises with respect to
250827 - working on both lines simultaneously, however, PG&E expects that SMUD
250828 - will not be using this second circuit for the foreseeable future.
250830 -  ..
250831 - Pam said a key difference to be resolved with SMUD is over their
250832 - request to lease the 2nd circuit "in perpetuity."  PG&E has offered a
250833 - 20 year lease.
250834 -
250836 -  ..
250837 - Schedule
250838 -
250839 - Pam expects that next week the parties will close on all major
250840 - concepts.  She indicated that reaching final contracts with SMUD and
250841 - Sierra could take about 4 months, perhaps extending until the end of
250842 - February, 1995.
250843 -
250845 -     ..
250846 -    GO 131-D
250847 -    Completion Beyond Dec 31, 1995
250848 -
250849 -    Ed Bedwell noted that complying with GO 131-D may extend comple-
250850 -    tion beyond Dec 31, 1995.  Consideration should be given to noti-
250851 -    fying City of Folsom officials if it is reasonably expected that
250852 -    completion will be dramatically extended.
250854 -     ..
250855 -    Buck Jones explained current thinking on GO 131-D filing require-
250856 -    ments. If an exemption is attained, the cost will be about $5K with
250857 -    minimal schedule impact.  If the project is not given an exemption.
250858 -    there may be a cost of $50-$100K and approval process could sig-
250859 -    nificantly delay the project.
250861 -     ..
250862 -    Buck recommends major effort to finalize contracts before filing
250863 -    for GO 131-D permits.
250864 -
250866 -  ..
250867 - Alternate Schedule Scenarios
250868 - Sierra Needs Power in 1997
250869 -
250870 - Pam suggested that the project schedule be considered to reflect GO
250871 - 131-D, and the time for finalizing the contracts discussed today. She
250872 - proposed developing a project schedule based on Sierra needing power
250873 - in 1997.
250875 -  ..
250876 - Bill explained the current schedule reflects information from Engine-
250877 - ering.  He noted that GO 131-D is a new requirement that has not been
250878 - fully defined.  PG&E Land is working to identify procedures and im-
250879 - pacts on all new projects.
250881 -  ..
250882 - Bill feels Gold Hill relocation work will likely be subject to GO
250883 - 131-D.  PG&E will incorporate these impacts in the project schedule
250884 - as they become apparent.
250885 -
250886 -
250888 -  ..
250889 - Engineering
250890 -
250891 - Randy Hopkins indicated that engineering can be expedited for the
250892 - relocation to support filing on GO 131-D.  This may increase the
250893 - engineering budget by a moderate amount, but would require immediate
250894 - expenditure in advance of having a contract with Sierra.
250895 -
250896 -
250898 -  ..
250899 - Payment from Sierra
250900 - Interim Agreement
250901 -
250902 - Pam noted concerns about PG&E continuing to incur expenses prior to
250903 - obtaining contracts and project approval.
250904 -
250905 -     If PG&E seeks GO 131-D exemption for relocating the line, it will
250906 -     be required to complete this work prior to Dec 31, 1995.  This
250907 -     effort will increase the costs of engineering, procurement and
250908 -     construction.  At this time, the feasibility of accelerated
250909 -     performance and its cost have not been evaluated.
250911 -      ..
250912 -     If PG&E elects not to seek an exemption, then costs could increase
250913 -     by $50 - $100K in direct costs, plus an unknown amount to comply
250914 -     with any requirements that might emerge from the process.  An
250915 -     example, but by no means expected result of subjecting the project
250916 -     to the full GO 131-D permitting process, could result in raising
250917 -     the poles, or constructing structural and more secure barriers
250918 -     along the corridor, or special public facilities, in order to meet
250919 -     public concerns.  The GO 131-D process could extend completion of
250920 -     the project into 1997.
250921 -
250923 -  ..
250924 - Notification of Sierra
250925 -
250926 - Since Sierra will be liable for the cost of the project, there was
250927 - consideration of notifying them about these risks, and that to reduce
250928 - their exposure, PG&E is willing to enter into an interim agreement
250929 - for Sierra to finance the work required to obtain the GO 131-D
250930 - exemption.  This could be accomplished by a letter agreement, so PG&E
250931 - management can approve PG&E expending the effort required to seek an
250932 - exemption from GO 131-D.
250934 -  ..
250935 - Glenn West said this letter could be submitted to FERC to obtain
250936 - approval for Sierra to make payments to PG&E.
250937 -
250938 -     In order to issue such notice, PG&E needs to estimate the costs
250939 -     of obtaining GO 131-D exemption by exediting its work; this
250940 -     includes making a determination of whether it is actually
250941 -     possible to complete by 951231 even with accelerated performance.
250943 -      ..
250944 -     PG&E needs an estimate of costs in the event GO 131-D exemption
250945 -     is not obtained.  This includes:
250946 -
250947 -         a.  Cost and time of the process.
250948 -
250949 -         b.  Cost of alternate scenarios in the event remedial work is
250950 -             ordered, with an assessent of factors which could lead to
250951 -             such orders, so that the level of risk can be considered.
250952 -
250953 -
250955 -  ..
250956 - Pam indicated that Sierra is very cost conscious.  It was not apparent
250957 - from the discussion today that they have alternate means to accomplish
250958 - the objectives of this project.  Therefore, they may be interested in
250959 - supporting PG&E's effort to reduce the cost of the project by obtain-
250960 - ing the GO 131-D exemption.
250961 -
250962 -     This effort was continued at a follow up meeting reported at ref
250963 -     SDS 3 line 51.
250964 -
250965 -
250967 -  ..
250968 - Possible Right of Way Conflicts
250969 -
250970 - Ed Bedwall reported on two possible conflicts in PG&E's use of SMUD's
250971 - right of way.
250972 -
250974 -       ..
250975 -  1.  New SMUD Pole in Right of Way
250976 -
250977 -      Ed saw some poles for a 69 kV line laid out within the corridor
250978 -      where PG&E intends to relocate its line in the SMUD right of way.
250979 -
250980 -      Randy indicated PG&E needs only 57 feet of SMUD's 200' right of
250981 -      way.
250983 -       ..
250984 -      Ed and Buck Jones will investigate this matter tomorrow.  Bill
250985 -      will meet with Ed at the site tomorrow, prior to a meeting with
250986 -      CDWR in Sacramento at 1000.
250987 -
250989 -       ..
250990 -  2.  Bridge Route
250991 -
250992 -      Next Tuesday, city of Folsom will vote on alternate routes for a
250993 -      bridge to cross the American River.  One of the choices for the
250994 -      bridge would conflict with the route PG&E intends for the
250995 -      relocation project.
250996 -
250997 -
250998 -
2510 -

SUBJECTS
Public Relations, EMF
Remedial Action Scheme (RAS)

2904 -
290501 -  ..
290502 - Public Notice PG&E Has Not Determined EMF Justifiable Health Concern
290503 -
290504 - Mike Herz reported an article was published recently which has been
290505 - viewed as incorrectly indicating PG&E is relocating the Halsey
290506 - Junction line in order to address EMF issues.  Mike recommends that
290507 - PG&E make clear in its communications that PG&E is performing this
290508 - project for business reasons set out in its contracts, and that PG&E
290509 - has not concluded EMF warrants remedial action.
290510 -
290511 -     Ed feels the article Mike cites cannot be reasonably construed to
290512 -     say PG&E is relocating its line due to EMF.  Mike concurred, but
290513 -     noted that PG&E is making an extra effort to reduce the chance
290514 -     that even "unreasonable" conclusions do not gain currency within
290515 -     the community on EMF relative to PG&E work and facilities.
290517 -  ..
290518 - Mike has been assigned to support the project in dealing with news
290519 - media.  He requested notice of public events where news media are
290520 - expected to be in attendance.
290521 -
290522 -
290523 -
2906 -

SUBJECTS
Developer Negotiations, Bob Crooks
Contracts, L&P

3104 -
310501 -  ..
310502 - Agreement Reached with L&P for #300K
310503 -
310504 - Ed Bedwell reported for Bob Crooks.  About three (3) weeks ago PG&E
310505 - reached agreement with L&P to contribute $300K plus an amount for
310506 - contingencies.
310507 -
310508 -     The agreement has been "lost in the mail."  It is dated October
310509 -     11, or 24 [????]
310510 -
310512 -  ..
310513 - The parties were at impasse in negotiations at $200K.
310514 -
310515 -     The mayor of the City of Folsom helped in obtaining the good
310516 -     offices of a city council member to mediate the agreement between
310517 -     PG&E and L&P.
310518 -
310519 -     Press coverage alerting the community of PG&E's efforts to
310520 -     relocate its line, touching on health concerns, helped the devel-
310521 -     oper recognize the advantage of increasing its financial contri-
310522 -     bution to the project to $300K.
310524 -      ..
310525 -     Following announcement of the agreement, L&N took public credit.
310526 -     Its negotiating posture had been vigorous.
310528 -  ..
310529 - The community has responded favorably to press notice that PG&E will
310530 - relocate the line.
310531 -
310532 -     One person has objected to PG&E relocating its line.
310533 -
310534 -     Some people have expressed disappointment that SMUD is not
310535 -     removing its line.
310536 -
310537 -
310538 -
310539 -
3106 -

SUBJECTS
Next Meeting

3203 -
320401 -  ..
320402 - Progress Meeting Schedule
320403 -
320404 - Mike will notify the team of the next progress meeting date.
320405 -
320406 -
320407 -
320408 -
320409 -
320410 -
320411 -
320412 -
3205 -