EWEB status

I spoke with Jim Deason who is reviewing our documentation, including, the
ISDA Schedule, Credit Support Annex and Deemed ISDA. He will email to me
EWEB's comments to our blacklined Schedule. He has not conferred with Dick
Varner on the Credit Support Annex but hopes to have comments to me later
this week; I offered to have Tracy or Ed available to discuss credit.
Finally, he has reviewed the Deemed ISDA and will have the same comments
here. HOWEVER, Jim indicated that the transaction which Holli entered into
is not the type of FINANCIAL deal that EWEB has contemplated (or authorized)
and that it would require special board approval. The Board meets on Dec.
5. He requested that a special provision be inserted into the confirm prior
to that approval, stating that this transaction is NOT BINDING until approved
by the EWEB Board (Jim will send requested language). By copy of this
message, I ask that Holli advise on steps to be taken regarding execution of
the Deemed ISDA confirmation.

Click on this link to view the document in the Financial Trading Agreements
database--<