We have just learned that AEP is agreeing to construct the Dumont Substation
in Northern Indiana (which we argued for in the Michigan transmission case):
however, much of the capacity made available has been reserved with rollover
rights:

1. Duke has purchased 416mw beginning the summer of 2002. It is to provide
transmission from two Duke merchant plants into MECS (we think to serve a
utility).

2. Exelon has purchased 500MW for transmission into Com Ed (east to west) for
2001-2002 under a special tariff arrangement which results in alternative
higher pricing.

For those following the Michigan case, Kerry will be drafting our brief in
which we will argue that to extent the transmission capacity is not being
used to serve competitive retail load, this should not count towards the
2000mw of increased capacity as required by the dereg statute.

For those covering Com Ed, this bolsters the info we have received regarding
Com Ed's concern about having adequate capacity.

Janine