Message from Pug Winokur

Gentlemen:

Bob and I would like to schedule a joint session of the Audit and Finance
Committees, perhaps at the August meeting, to cover the following topics
(and any others which occur to you):

1. how and why are the trading and investment policies (and levels specified
therein) established;

2. how and why are the VAR and maximum expected loss limits set;

3. how useful is the VAR methodology as it is extended outside of the
wholesale gas and electricity business.

It would also be useful to update the Committees on the post-audits of
recent investments and perhaps on the larger "asset" investments such as
Dabhol, Electrol, Cuiaba, etc. Even as we move away from these investments,
there may be some additional lessons to be learned. Does our post-audit
process and procedure continue?

We could meet briefly in May to discuss the idea of a joint meeting and the
proposed agenda, if that is convenient.

Best regards.

Herbert S. Winokur, Jr.
Capricorn Management, G.P.
203-861-6600
203-861-6671 (fax)