AES

Along with my conversations about the Calvert City projects, I also spoke to
Paul Burdick about the following:

1. Putting a peaker expansion at AES's announced Sayreville, N.J. plant. He
indicated that they would be interested but that there was an issue with
transmission cue spots. I asked if there was a certain maximum size that
would allow for a quick interconnection. He was going to check? Do we know
of any exceptions?

2. I mentioned that we were developing a market based LD insurance product
to Paul. I walked him through the basics of mark-to-market accounting. He
was extremely interested. He says that they have 4 tolling agreements that
they would be interested in applying the product to (I believe that the
agreements are all with Williams; one of the agreements I believe already
calls for market based LDs). I told him that we would organize a
presentation shortly.