Since I did not get a chance to meet with you yesterday, I would like to lay out a few thoughts in this email:

1. Additional areas that might require immediate attention:

?	Consider existing "Bets" and large positions already in the books and ways of adjusting these bets, if necessary (excluding CA):
		- NY: large short positions behind Central Hudson and ConEd (IBM deal and others)
		- Carolinas: Standard Offer timing (Springs, Eli Lily, others)
		- Illinois: concentration of short regulated positions

?	Quick handle on option positions: do we need to switch customers in some areas? what options we ought to exercise tomorrow? next week? etc.
		- options embedded in the deals
		- regulatory switch options
		- retail index options
		- EAM options

?	Managing value from restructuring legacy deals: in the process of reviewing the 13 deals, we discovered some provisions in the contracts that were not captured and managed properly - they might require immediate attention to minimize losses in these deals.

2. Managing Regulatory Exposure

?	Approximately 80% of EES regulatory exposure is behind 40 utilities
?	In the process of rate case decomposition, we need to identify the main components of each rate structure - create a rate case formula
?	These components will fall into two categories: hedgeable (gas, coal, heating oil fuel costs, inflation, etc.) and "unhedgeable" (CTC timing, standard offer, etc.)

		Hedgeable Component						Unhedgeable Component
Strategy:	Manage within the respective commodity books			Capitalize on portfolio diversification across the country
										Look for "macro" hedges and focus activities of EGA

Pricing:		You know best							Risk-based: higher premiums for greater uncertainty

Policy:		Internal authorizations only on who, how and when to hedge	Develop a limit framework and propose a limit to the BOD

Exposure:	Existing VaR model will suffice					Develop and implement stress scenarios to quantify exposure

3. Other Considerations

?	Curve management: clear responsibilities, periodic review and validation
?	Interaction with the EAM world: EAM projects create long positions, pricing bundled deals with an EAM component
?	Flash-to-actual catch up: liquidations validate curve assumptions
?	Attention to EES-Canada: currently executed a power deal and a few gas deals
?	Process for pricing smaller mid-market deals: sacrificing quantity for quality - force originators to develop standard deal structures

I could elaborate further on these points. Vlady.