Aftermath

Greg stopped by to say that the in the aftermath of the BPA/Kaiser non-deal
the following further sub-deals could materialize.

Kaiser already has exercised a 24 hour notice right to sell balance of the
month energy to BPA at index. If BPA does not want the index power
(unlikely) we could buy it from BPA. No prepay strings.

Kaiser may give BPA 48 hour notice to do a January remarketing deal at an
unknown price. I'm not sure if we would purchase the power from BPA.

Kaiser may give BPA a seven day notice to do a five month deal beginning in
February which we might consider doing a prepay for.

Alcoa and another company are trying to close a deal by the end of the year
whereby they are going to purchase a power plant-industrial complex at
Longview, Washington. (Our origination guys are always working on something
at Longview and this is probably it.) As part of the closing, they are going
to want to shut down part of the site and sell the power on the forward
market. There is a potential that we might buy the power from them through
BPA and perhaps prepay for it.

I told Greg the legal team, having worked through many of the issues on this
kind of transaction last week, would stand by to help with any further
developments. ----cgy