Cross border Ops.

Tom,

I hope I gave you enough information in our conference call today.

Attached you will find a translation of a document that was given to the
developers by CFE (Federal Commission of Electricity/ incumbent
monopoly/national electric utility) in which after describing what it wants
to do with RIo Bravo III project it asks 10 questiont to the possible
participants.

Basically in this bidding process they want to give the alternative of
buiklding an IPP or of importing energy based on a long term contract.

On the West coast the opportunity is the other way around. Theoretically we
could export energy from Mexico to the U.S. The problem here is that the
California ISO will not make capacity payments for a plant in Mexico. If we
do not have those capacity payments the economicas of the projects will no t
work . Dave Parkay from West Origination I think sits on the board of the
ISO.

If you need anything else please call.