ROCE and Cost Iniatives

Wes, as per our discussion, I wanted to detail the action items from the
analysis:
a) the Office of the Chairman will be increasing the visibility of ROCE and
cost metrics as a part of the QBR process;
b) the ROCE iniatives include:
- HPL divestment - Donahue/Detmering/Redmond;
- GENCO strategy or possible peaker sales - Donahue/Miller;
- MPR rationalization, Raptor strategy and divestment/clean-up -
Donahue/Maffitt/Peterson
- LRC optimization, increased performance - Redmond/Mrha;
-Sithe restructuring, elimination of the tracking account - Donahue;
- Powder and Wind River sales - Redmond/Mrha.
c) specific cost reduction iniatives as detailed in your presentation -
implement with feedback/measurement process to ensure buy in - Wes Colwell;
and d) further analysis on quality of product/service for cost for
non-commercial and group expenses - Wes Colwell.

Regards
Delainey