2002 Houston Marine Insurance Seminar Gil Gould Senior Vice President, Underwriting September 24, 2002

The Mission of AEGIS is to assure utility and related energy industry Members consistently superior insurance and risk management products and services through a secure and stable market enabling Members to achieve the lowest overall long-term cost of risk. AEGIS Mission Statement

Current Membership

AEGIS Program New Related Energy Members YearNew Members (Through July)20

Related Energy Members Primary Program with Liberty Mutual Accounts Starting September As of September 1,

AEGIS Related Energy Focus Exploration and Production Operations (Oil and Gas) –Lease Operations –Owner Operators Oil and Gas Servicing Contractors –Contractors whose primary business is services Rigs (Not Part-Time Contractors). –Contractors whose primary business is Land Based Rigs.

Director’s and Officer’s Liability Underwriting Considerations Company Operations –Electric/Gas –Nuclear Electric –Related Energy –Merchant Power –Trading Operations –Telecom

Director’s and Officer’s Liability Underwriting Considerations Business Strategy –Conservative (Traditional Utility) –Moderate (Related Energy) –Aggressive (Energy Trading, Unregulated) Financial Condition Merger Activity Stock Market Fundamentals Off Balance Sheet Financing

Director’s and Officer’s Liability Underwriting Considerations Board of Directors –Inside vs. Outside Directors –Committee Composition –Conflict of Interest

Financial Products Contingent Financing –Provides post loss financing for risks –Combined with risk transfer Captive Options –Fronting, stop loss, risk funding –AEGIS Solutions ( SAC ) Deductible Options –Evidence of Insurance to meet loan provisions, DIC –Risk transfer or funding

Committees and Task Forces Risk Management Advisory Committee International Risk Management Advisory Committee Claims Services Task Force Loss Control Task Force