UK RAB Multiples

FYI

Vince

---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 08/24/2000
08:51 AM ---------------------------

Michael Anderson @ AZURIX
08/23/2000 07:48 PM

To: Vince J Kaminski/HOU/ECT@ECT
cc: keith.harris@wessexwater.com
Subject: UK RAB Multiples

I talked with Keith Harris, our CFO at Wessex, about the RAB multiple graph I
gave you. He expressed that the Wessex people had originated the data and
that the graph was correct, to the best of their knowledge. The only (but
very important correction) is that they started the graph at an index of
100%, which does not imply a 100% of RAB multiple. Rather, the initial RAB
multiple was around 80%, implying that the entire line should be taken down
by 20 percentile points. Thus the all time hime in late 98 should be closer
to the 1.3x RAB that I had targeted during our discussion. Please call Keith
if he has not yet contact you.