hedging

the attached summarizes my points for the meeting wednesday.

the main message is that we have the hedging under control, we are doing what
we said regarding hedging, even though the insurance has not come through
yet, and our plans are intact, though modified.

let me know your thoughts. i also have a figure to show how our exposure
compares under insurance and the current hedge, but it's hard to draw.
(per - i just sent you a fax -- look for it at 6-3247 in the morning).

another update -- the head of berkshire re called this morning from london
and i spent about a half hour talking to him. he seems more comfortable with
our motives and our business plan but will need to spend some time with us
when he returns before he can recommend a deal to warren. one issue is that
warren knows more about electricity than he does (he owns midamerican in
iowa and is looking to buy more utilities -- maybe we can sell him PGE), so
he will have to be better prepared. i think they want to work with us, but
timing is still an issue.