At 10:45 am today, Jan 6th, we sent a notice to TVA advising them that a 
Triggering Event under the MOPA had occurred.  As a result of the Triggering 
Event, EPMI has the right to suspend deliveries and/or to terminate the 
MOPA.  At this point, we have not elected to suspend deliveries or to 
terminate the MOPA.  Accordingly, our performance under the MOPA at this 
point will not be impacted and we will continue to perform under the terms of 
the MOPA. 

 The letter also sets forth a proposal to TVA pursuant to which EPMI would be 
willing to continue performing under the MOPA.  This proposal is conditioned 
on  TVA allowing EPMI to seek a judicial determination of its rights and  TVA 
paying market-based rates for the energy delivered by EPMI to TVA under the 
MOPA  pending the judicial proceedings.

If you have any questions, please call me at 36349.