The only comments I received from Mark Ellenberg and Barry Dichter both of
whom reviewed the analysis I sent you last night are:

1. To highlight that the assumption that VEPCO's ultimate right to the
return of collateral would be deemed to be a claim for a margin payment or
settlement payment is not entirely clear and, as noted in the analysis,
that we believe it is a close call.

2.  To point out that the absence of collateral upon setoff also likely
constitutes a breach of the Master Agreement (again, we have not seen the
contract), in addition to, and independent from, effectuating a depletion
of margin collateral.

Otherwise, Mark and Barry concur with the analysis.

Rick Antonoff
212 504-6759
rick.antonoff@cwt.com


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