1. Azusa Utility Board Meeting January 28, 2008

2. Power Resources Division Monthly Report Power Resource Update Power Consumption Comparison Wholesale Market Trend Power Resource Budget Update

3. Power Resource Update We are making final preparation for the start up of California Independent System Operator’s (CAISO) new markets in early spring 2008. We are participating in the final market simulations and continuing the testing of our internal systems and operating procedures. We are working with Garnet Wind to certify the wind farm generation to operate in the CAISO markets. Garnet Wind is completing the permitting process with Riverside County and the electric interconnection process with Edison. Construction of the wind generation facilities will commence shortly. We are participating in the Southern California Public Power Authority (SCPPA) renewable resources RFP process for potentially additional renewable resources. We are coordinating with SCPPA and PNM on San Juan unit 3 scheduled outage issues. The scheduled outage has been delayed for two weeks due to the need for additional outage planning. We are participating in the Lodi #2 Project development process. A request for electric interconnection to the CAISO system has been submitted. Technical feasibility studies will soon be under way. We receive a letter of interest from Municipal Energy Agency of Nebraska regarding long term power sales of City’s share of San Juan Project. Staff is preparing a response to the letter.

5. WHOLESALE ELECTRICITY SPOT MARKET PRICES IN CALIFORNIA

6. Power Resource Cost Accounting FY ’07-08’