CP Follow-up

I am writing you in order to report the latest developments in relation to my
visit in September. I forwarded the attached file to James New and Mike
Jordan several weeks ago and had hoped to discuss it with them. I have had
no response and, therefore, I assume that they agree with the direction that
was laid out in the departure meeting (Sept. 15) with Gregor, Paul, and Risk
personnel.

The three areas addressed in the report are as follows:

Pool Book P&L Split
EnPower Structure Modification
Transmission Valuation

Pool Book P&L Split
I have spoken to Anthony MacDonald about the progress and as I understand, he
has offered to devote time in order to inform James and Coralie Evans about
the underlying problem.

EnPower Structure Modification
Paul can certainly give you a more detailed understanding as to the Legal
Entity decision process and amount of rework time that is required of your
Risk and Confirmation groups. I have discussed this problem with Zhiyong Wei
(Houston's EnPower support) in order to inform him of the situation and Paul
mentioned that he has also spoken with Brian Hudson.

Transmission
As of my last communication with Houston IT, the testing was almost
complete. At the departure meeting mentioned above, we considered valuation
of transmission as a spread-option to be Plan A and further agreed upon a
Plan B and C. The report details the operational risk involved in valuing
transmission by using the Forwards deal type in EnPower.

Since I have communicated with James and Mike and now with the 3 of you, I
have completed my responsibilities on this project. We have now formalized a
direction with backup plans and I would encourage testing by the London
office to ensure that what meets the West Power desk's needs will also
address yours. If you need to further discuss this report, feel free to call
or set up a meeting.

Regards,

Todd Hall