Longview DASH Louise,

Chip will want to talk with you about the Longview equipment.  We are circulating a DASH to enable us to continue making payments.  If we do not continue to make payments, we forfeit the equipment and take a $23MM hit.  This is approximately 35% of the total equipment contract.  I think the equipment is worth more (than 65%) and I believe that we will get out of this problem with less than a $22MM hit.  I therefore recommend that we commit the extra $ for this equipment.  It will continue to be funded off B/S.  

We continue to have discussions/negotiations with Calpine, NRG and TransAlta.  We have also opened up general equipment discussions with Mirant and AES.  

Regards,

Chris Calger
503-464-3735


