Dear Don:

We are fine tuning the methodology for our hourly indexes in order to
clarify our regional definitions. I know that you offered some valuable
feedback in the past to Bobette Riner and wanted to solicit your input now
as well.

In the draft (attached) we have classified trades solely based on their
source and sink. In so doing, we have removed references to power moving
"into or through" hubs.

In drawing regional boundaries, we have generally relied on the NERC
regions, although we continue to offer two indexes for ECAR (AEP/Northern
ECAR and Cinergy/Southern ECAR). We also are retaining the Entergy/SPP
index, based on Entergy's  intention to join SPP's proposed Regional
Transmission Organization.


The most significant other changes are:

-- ComEd/MAIN: Trades sourcing from, or sinking in, Ameren's control area,
would be included; title may change to "MAIN"

-- TVA/SERC: Virginia would be included; as previously planned, the name
changes to "SERC"

-- ERCOT: power moving out of ERCOT can be included in the index

I will attempt to reach you via phone next week to discuss these proposed
changes. We are particularly interested in how these changes may impact use
of the indexes in financial trading, quantitative analysis, risk management,
deal structuring, etc.

Feel free to pass this along to any of your colleagues for their input and
to jot any immediate thoughts to me in an e-mail.

We appreciate your input.


Regards,

RICH HEIDORN JR.
General Manager
TradersNews Energy
170 Pheasant Run, Suite 200
Newtown, PA  18940
rich.heidorn@ipgdirect.com
(T) 215-504-4288 ext. 203
(F) 215-504-5598


 - All Hub Methodology (Rev. 7-01).doc