Iowa/Mid American

Ajit--regarding the pending rate reduction petition that has been filed at
the Iowa Utilities Board (IUB) by the Office of the Consumer Advocate (OCA)
against Mid American. We've been looking at the prudence of intervening and
being active in the case, based on your suggestion that if the rate reduction
of $77 million as requested were granted, we might benefit to the tune of
about $1.2 million on the current customers that we have behind Mid Am.

We are looking at a number of issues, including the probability of success,
the prudence of us being on the witness stand if we provide testimony, the
effect of the proposed rate design if a reduction is granted, going back to
the last case to see how much the OCA really won,etc. The first testimony
will be filed in mid June, and we should have a better idea then of what the
case is really going to look like.

One threshold question is whether there is any language in our contracts
for the customers that prohibits us from representing their/our interests at
the IUB. I am thinking that there probably is not, but want to make sure.
COuld you please forward to me and Harry a copy of each customers contract to
review?

Vicki/Elizabeth--wasn't sure who these contracts would fall under, so Jim
suggested I send to you as well.