V. Financing-Short Term

To pay for diligence efforts to acquire PacifiCorp's assets, Nor-Cal has a budget of roughly $1.75 million. Seven hundred fifty thousand dollars was borrowed by Del Norte and Yreka to be allocated among Nor-Cal members on the basis of population. The balance of $1 million will be paid to Nor-Cal consultants and lawyers on the contingency that the proposed purchase and sale is approved by the Commission. While the refinanced loan documents and contingent fee contracts are not supplied by applicants, we assume that additional members joining Nor-Cal will share proportionately the $1.75 million short-term obligations.

The application is silent as to which professionals are performing due diligence work on the contingency that they receive no compensation unless they are successful in persuading the Commission to approve the application.