Seabrook Option

Earlier this year, Dana had several mis-booking issues with the UI
transaction, which resulted in negative trading hits in Q3 (already
incorporated in P&L). The significant items were:

RESCO PPA (outages not booked properly) - $8 million
Congestion & Ancillary Assumptions - $8-10 million
Millstone nuclear option ($32/Mwh option) - $5-6 million (With sale of
Millstone, this option goes away)

The $32/Mwh Seabrook nuclear plant daily option was not modeled for 01-03
because the sale of Seabrook (expected to occur earlier this year) is an
automatic termination of the $32/Mwh option, therefore the value was not
booked. Since the sale of Seabrook sale has not occured yet and a minimum of
10 months is required to get state & local, NRC and FERC approvals for the
sale of Seabrook, we have a positive value surprise to the tune of $10-12
million (assuming option is booked through 9/01.

Let me know if you want us to take the value for 4th quarter or wait until
next year to take the income. Since we have a pact to not hide anything, I
wanted to make you aware of this situation.