EPower regulatory review

John and Carey,

I attach an outline of the report we are aiming to produce on the current
regulations governing the construction, ownership and operation of IPPs and
associated facilities in Japan so far as they relate to EPower's activities.
The outline also includes an implementation schedule. As previously
mentioned, the aim is to have the report together with recommendations
completed by mid next month.

The response to the review from EPower has been very positive so far. We are
receiving assistance from all quarters within the company. Initial
indications are that EPower already has a good amount of the primary
information necessary for the review in some form or other. However, to date
there appears to have been limited analysis of that information by EPower to
determine the implications for project costs and schedules and how to
minimize potential delays. The report will aim address these issues.

I would welcome any comments you may have.

kind regards