Re: TVA Action

Christi

Here is a brief summary of the TVA/EPMI lawsuit - Let me know if you would
like more information

(Note - the MOPA has been filed under seal in order to protect
confidentiality - The judge was sensitive about this given the potential
right of a party to get the MOPA from TVA under a FOIA - Accordingly, we
don't want to encourage further invetigation of the MOPA by third parties)

*EPMI filed a declaratory judgement proceeding on November 15, 1999 against
TVA in the District Court for the Eastern District of Tennessee. Judge Edgar
has been assigned the matter.

*The lawsuit concerns the interpretation of an option contract EPMI and TVA
entered into on December 6, 1995 (Master Option Purchase Agreement (MOPA).

*The sole issue presented by the declaratory judgement is the obligations of
TVA and EPMI under the MOPA in the circumstances where EPMI is unable to
schedule for delivery, or deliver, energy requested by TVA under the MOPA at
the Scheduled Delivery Point (SDP) if the available transfer capability at
the SDP is not sufficient to allow the schedule or delivery. EPMI believes
that the MOPA unambiguously addresses the issue.

*A trial date in late June 2000 has been set.

*EPMI filed a Motion for Summary Judgement on November 18, 1999.