Thomas,

Here is a quick update for Calpine project.

1. Ben and I had a meeting with Scott this morning. Basic idea is to have 3 
and 5 year tolling agreement with Calpine and sell to the market after the 
expiration of the  agreement.

2. Ben prepared a preliminary model. Scott's target unlevered equity IRR is 
8.5% ~ 9%. Key value driver will be a capacity payment ($/kw/month) for 3 or 
5 years, which we will charge to Calpine. As soon as we get VOM from EE&CC, 
we will ask Structuring group to get the capacity payment for 3 and 5 years.

3. Things to be done
 - 3 and 5 year capacity payment to get 8.5% ~ 9% IRR of unlevered equity
 - 20 year power curve (capacity and energy) for Eastern PJM. We got gas 
curve.
 - VOM

I think this idea could be good if Calpine is willing to pay more than what 
we see for next 3 or 5 year Eastern PJM pool price, and/or we can leverage up 
more by taking advantage of 3 or 5 year tolling agreement. This is just my 
thought. Please correct me, if I am wrong. I will continue to work on the 
model with Ben and I will talk to Scott to find out more. Thank you.

Jinsung Myung