Delmarva Power Project Due Diligence

Ben/Don

Attached is an Excel spreadsheet with a tasking letter, summary estimate of
resources/cost, table of contents of deliverable package and the last is a
sequence of task/reviews.

Looks like with a 12/20/1999 kickoff, we could have "first look" review and
"fatal flaw" report to you by third week of January, draft full report by mid
February and final issue by end of February. This assumes Project Sponsor has
most of the essential documentation available and in our hands by 12/27/99.
It further assumes Project Sponsor has staff available in Houston to address
questions as they come up in the review process. Project would be led by
myself assisted by a designated Project Engineering Manager to coordinate
work efforts and report publication.

expected cost to be about $60,000 for EE&CC staff/travel, about $25,000 for
third party environmental consultant (based on discussion with Project
Sponsor's consultant and the apparent state of permits and licences). The
Development engineer cost is already covered as an allocation to ENA so does
not directly hit Project budget. Costs and resources should be considered
estimated based on our understanding of project and our assumptions of
available Project Sponsor documentation. We would anticipate publishing
bi-weekly due diligence progress summaries and would have updated
manhours/cost expened and commited to the report date.

Thanx Bruce