Ohio Market and Price curves

FYI, I am attaching for your information the price curves given to EES from
ENA. You will note that there is a very significant increase (approximately
60% in some cases) between April 18 and April 25. No reason has been
attributed to the increase that any of the EES people I have talked to know
about. Speculation is that it is due to our inability to do physical deals
(load following and balancing). I believe that is probably the cause along
with rising into Cinergy prices. This is what precipitated my memo about the
power swaps. I got a green light from both EES and ENA to proceed and am
waiting to hear back from AEP if they are willing to meet.

The issue of finding a solution to balancing and load following has to be the
number one agenda item for the midwest because it is destroying our ability
to do deals anywhere. Mike Roan and I are working on a strategy to address
the issue through the RTO on a longterm basis. My hope is that negotiations
with individual receptive utilities can provide interim solutions for us.

Janine