Subject: Seabrook Option
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Fri, 20 Oct 2000 10:43:00 -0700 (PDT)

Earlier this year, Dana had several mis-booking issues with the UI 
transaction, which resulted in negative trading hits in Q3 (already 
incorporated in P&L).   The significant items were:

 RESCO PPA (outages not booked properly) - $8 million
 Congestion & Ancillary Assumptions  - $8-10 million
 Millstone nuclear option ($32/Mwh option) - $5-6 million  (With sale of 
Millstone, this option goes away)

The $32/Mwh Seabrook nuclear plant daily option was not modeled for 01-03 
because the sale of Seabrook (expected to occur earlier this year) is an 
automatic termination of the $32/Mwh option, therefore the value was not 
booked.  Since the sale of Seabrook sale has not occured yet and a minimum of 
10 months is required to get state & local, NRC and FERC approvals for the 
sale of Seabrook, we have a positive value surprise to the tune of $10-12 
million (assuming option is booked through 9/01.

Let me know if you want us to take the value for 4th quarter or wait until 
next year to take the income.    Since we have a pact to not hide anything, I 
wanted to make you aware of this situation.