RE: Schedule C Question

Richter reserved that last year. He made the money. It's his. It goes against refund risk in California. If we take a hit in CA due to refunds, Richter should eat a good chunk of that hit -- if there is extra money then he should keep it.

John has asked me to do a thorough review of our Schedule C reserves in light of the northwest refund decision, BPA's new contracts that started in October, and the overall lower price environment. Richter's reserves will be a part of this bigger effort that I will get done this week.

Let me know if you have any questions.

-----Original Message-----
From: White, Stacey W.
Sent: Tuesday, October 16, 2001 7:51 AM
To: Belden, Tim
Subject: Schedule C Question

Lavorato is asking why Jeff Richter still has $25MM of reserve associated to him since he has moved to EES? How would you like me to handle this question?

Thanks,
Stacey