Cristobal

I received word back from 4 of the 5 parties in response to my earlier notes
(both voice mails and e-mails) on:
rehearing process and compliance filing
agenda for the 29th
native load
participation and valuation

Here is the download --

Rehearing Process and Compliance Filing -- They recognized that there were
differences; however, they felt that the rehearing process and JV
formation/process provided avenues to make the needed changes. The major
changes in the compliance filing were removal of approval rights, such as 1)
acquisition or encumbrance of a transmission asset and 2) sale or issuance of
membership interests. Craig Baker indicated he would send a copy of the
compliance filing tomorrow. He also indicated that they planned to file by
late today or tomorrow.

Agenda for the 29th -- The agenda seems to be in place; however, they did
indicate that they would only be able to address the wires to wires synergy
discussion in part. They indicated that they would be able to address the
areas where savings or additional revenue would be generated but may not be
in a position to specify the financial impact (i.e., ebitda and market value
impact). They also indicated that Andersen has all of the individual Company
numbers but not sure when the consolidated top financials will be available.
Craig Baker committed to provide an update by tomorrow morning. I have a
call into Larry Oliva from Andersen as well.

Native Load -- The difference between our respective positions (per Craig
Baker) supports my earlier description. Craig indicated that the Native Load
and Wholesale Network Customers are advantaged (as compared to the Firm
Point-to-Point Wholesale Customer) as a result of the filed Network
Agreement. This allows the Network Customers to increase capacity as load
grows (potentially usurping the rollover right of a Firm Point-to-Point
Wholesale Customer). The Alliance feels this will be a point of contention
between the State PUC's and FERC, and, they did not want to be placed in the
middle.

Participation and Valuation --
AEP -- Craig Baker indicated that Henry Fayne will be there
1st -- Stan Szwed indicated he is confirming their CFO's attendance. He will
get back with me by Monday.
Detroit Edison -- Joe Welch is confirming the attendance of their lead M&A
representative and will get back with me by Monday (He also applauds our
attempts to move this forward)
Consumers -- Chuck Waits is discussing the resource issue with Chris Helms
(President and COO) . He also committed to get back with me by Monday.
Virginia Power -- no word

Please call Randy or me if you have any questions. Thanks, Ron.