FLORIDA Matters

Marchris --

Some things on follow-up from Ken Lay's call with Jeb Bush (could you have
answers by End of Week) -

1. What is the process post the FL Supreme Court decision. Did anyone appeal
to the Federal Courts? Outcome of that action, if taken?

2. Is it possible for the FERC to simply act to waive the CCN need? Did we
ever discuss with FERC counsel the ability for that agency to "override" the
CCN for any filing EWG? What would they need to do? Would FERC need to take
on the FPSC or Fla Supreme Court? A state should have the right to worry
about safety and reliability, but not interfere with wholesale competition.

3. Have we calculated a "back of the envelope" $ value for the margin the
Utilities (FPL, TECO, FPC) will obtain by transferring generation at book? I
would think that nuke should be at book (this is a gimme) with the fossil
analyzed as the difference between average book ($/kw) and market value ($/kw
- see Ben Jacoby). What is the total $?

My understanding is that Steve Kean is heading into Florida to meet with Sect
of Environment next week. We need to try and get a read from the Utilities
on how much $ would they be willing to give back in rate decreases as a
Generation Stranded Benefit to see this deal through before the meeting.

Thanks,

Jim