Tim and Mike:

We are advised by Stacey and Georganne Hodges and we will make below Schedule C adjustments in LTNW desk this month-end (Friday).  Please let me know if you disagree or please approve the attached Schedule C form and I'll print it out for you to sign off.

Release/Removal of schedule C:
region: Mid-C
amount: $11,432,070 (the release will increase the P&L)
reason for the reserve: reserved against BPA Federal Surplus Contigency Clause
entry date: 2/1/01
planned removal date: 9/30/01

New schedule C:
region: Mid-C
amount: $11,400,000 (the new schedule will decrease the P&L)
reason for reserve: Northwest Refund Risk
planned entry date: 9/30/01

Net P&L effect = +$32,070

 

Please let me know if you would like us to use the same explanation we used for the $10MM schedule C reserved in LTCA on 8/21/01 for the same reason (Northwest Refund Risk).

Thanks,
Fran