RE: Westinghouse "Wet" Turbine

I am available to meet this week except 9:00 a.m. to 1:00 p.m. on 5-17-01 and
9:30 a.m. to 11:30 a.m. on 5-18-01. I am traveling Monday, Tuesday and
Wednesday of next week.

We need Seimens Westinghouse to prove the "total loss" claim and I suspect
that is why our business people have not pursued them more vigorously.
Carlos, Please call me.

-----Original Message-----
From: Sole, Carlos
Sent: Wednesday, May 16, 2001 7:01 PM
To: Jacoby, Ben; Booth, Chris
Cc: Edison, Andrew; Bouillion, James L.; Studdert, James P.; Mann, Kay
Subject: Westinghouse "Wet" Turbine

I have involved Andy Edison, one of ENA's litigation managers, in reviewing
our potential claims against Westinghouse with respect to the "wet" turbine
and the general issue of whether we have any type of "duty to mitigate" the
expense of the cost of the replacement generator (ie, whether we have a duty
to purchase the replacement generator at $3 mm since its cost might go up.)
Andy has some interesting thoughts and questions, including why we aren't
pressing Westinghouse harder with our claim and aren't pressing them harder
to hold their price on the replacement generator for a longer time period
given their potential exposure to us (arguably we might have a duty to
mitigate the expense associated with the replacement generator if we have a
reasonable basis for believing that the cost might go up). Since there are
no black and white answers, it probably would be useful to have a meeting to
discuss our thoughts and address questions that we and you all may have.
Please let me know your availability to meet either this week or early next.
Lastly, Andy has noted that under our insurance policy we need to bring a
lawsuit against the insurance carrier if they to fail resolve our claim
before July 2001. The practical impact of this is that we need to prepare a
letter agreement whereby we and the insurance company agree to extend that
time period. Andy has recently prepared such a letter with respect to
another claim and has agreed to prepare one for this claim as well. Thanks.