EXHIBIT 99.287

Author: Alan Suding at PSC-LADWP
Date:   5/7/97  11:05 AM
Priority: Normal
TO: Paul Gribik at PSC-LADWP
TO: Hemant Lall at Not-Mac
TO: Dariush Shirmohammadi at PSC-LADWP
CC: Shashi Pandey at PSC-LADWP
CC: gbackus@boulder.earthnet.net%smtp at x400po
Subject: Follow-up opportunity for PSC from George Backus

- ------------------------------- Message Contents -------------------------------

         As a follow-up from the group meeting McMenamin had which included Paul
         and George, George was invited in yesterday by Treasurers to talk with
         a group of SCE VP's which included Willie Heller (Strategic Planning)
         and Vikram Budhraja. (He met later in the day with SCE UDC folks too
         but that's not important right now.)

         The VP meeting turned out to be a tough group interview of George. He
         was grilled particularly hard by Willie Heller. Apparently Willie was
         satisfied because he wants George to set up a system and process for
         SCE to evaluate gaming options when dereg starts. Willie told him to
         get whatever additional help he needs. WH doesn't care if it's from
         PSC, Arthur Anderson, or McKinsey. George got the impression WH would
         prefer it not be McKinsey in order to maintain neutrality.

         This project is very confidential within Edison.

         George sees the following as what needs to be put together.

         1) George's SD model

         2) Paul's insights (and model) into how the ISO works, where are the
         holes in the ISO process, which ones should be plugged, which should be
         used, etc.

         3) Massive data input from the ISO/PX when it's running

         4) Expert statistical skills (with a commodities emphasis) in order to
         analyze whether results are due to model recommendations or just
         coincidence. (George mentioned Backsholes method and co-integration
         method as two examples of what he's thinking about.)

         5) Set up a data "intelligence" process to determine when PG&E, Enron,
         Southern, or any other entity is manipulating the market vs. just
         random market activity. How can Edison's maneuvers be "hidden" or
         "obscured".

         Willie wants to set up a gaming system so that hourly, daily, and
         monthly moves in the market can be explored, tested, analyzed, and then
         used. As well as an overall strategy to guide the tactical decisions.

         Can PSC provide assistance with items 2 thru 5 in working with George?
         I'd like to get back to George later today or tomorrow at least with a
         preliminary indication of PSC's interest.


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