RE: schedule C

Please proceed with Stacey on taking the prudency you are comfortable with. Stacey will have to get approval from Louise and/or Lavo.

Thanks.

-----Original Message-----
From: Gilbert-smith, Doug
Sent: Wednesday, October 24, 2001 12:44 PM
To: Presto, Kevin M.
Subject: schedule C

Kevin,

The actual numbers are $2.9 for LCRA and 2.09 for Green Mountain. The LCRA number was for the transmission spread to Austin and can be released as we have Sandhill and the transmission market is no longer set up as it was in Sept 2000. On the Green Mountain side, $950 K is for scalar risk which may be high, $1 MM for ancillaries and $150 for the QSE exposure I underwrote for the services desk.

I feel comfortable releasing the LCRA and a portion of the Green Mountain scalar and a/s reserves. We have some idea of the a/s risk now but I need to keep some of that in reserve. Obviously the QSE part I need to keep.

Let me know,

Doug