1. JILL DOMINGUEZ VICE PRESIDENT-UNDERWRITING ENERGY INSURANCE MUTUAL MARCH 30, 2007 HYATT REGENCY AUSTIN AUSTIN, TEXAS A PRESENTATION TO THE AMERICAN PUBLIC POWER ASSOCIATION RISK MANAGEMENT AND INSURANCE COMMITTEE

2. EIM’S PRODUCTS GENERAL LIABILITY $100,000,000 D&O/GENERAL PARTNER LIABILITY $50,000,000 FIDUCIARY LIABILITY $25,000,00 ALL EXCESS OF AT LEAST $35,000,000 PROPERTY $35,000,000

3. MEMBERSHIP MIX

4. MEMBER RETENTION RATE 200697% 200596% 200499% 200396% 200299%

5. EIM PUBLIC POWER MEMBERS  City of Anaheim  City of Richmond, Dept. of Public Utilities  City Utilities of Springfield, MO  District of Columbia Water and Sewer Authority  Grand River Dam Authority  Imperial Irrigation District  Los Angeles Department of Water and Power  Long Island Power Authority  Massachusetts Water Resources Authority  Metropolitan Water District of Southern California  Modesto Irrigation District  New York Power Authority  Orlando Utilities Commission  Public Utility District No. 2 of Grant County Washington  Sacramento Municipal Utility District  Salt River Project

6. CATASTROPHE EXCESS LIABILITY PROGRAM  $25,000,000 Per Occurrence  Total Shared Aggregate $25M Times the Number of Participants Less $25M  Currently Four Participants Which Equates to the Shared Aggregate Limit: $25M X 4 = $100M Less $25M or $75M  Credit: 15% Discount for Shared Limit

7. EPPIC MEMBERS IN EIM’S EXCESS LIABILITY PROGRAM  City of Anaheim  Imperial Irrigation District  Modesto Irrigation District  Orlando Utilities Commission

8. GENERAL LIABILITY  $84,425,249 Gross Written Premium  155 EGL Policyholders  $75.2M Average Limit  $38.6M Average Attachment Point  48% of GL Policies Written for Maximum $100M Limit

9. GENERAL LIABILITY ENHANCEMENTS  EPLI 47.7%  Workers’ Compensation 21.3%  Drop Down Joint Venture 40.6%  Drop Down Over Specific Aggregates 64.5%

10. GENERAL LIABILITY UNDERWRITING “HOT BUTTONS” ELECTRIC System Safety and Reliability Vegetation Management Process Safety – Attitude at the Top Dams – FERC Inspection Reports, Significant and High Hazard GAS System Safety Asset Repair/Replacement Process Safety – Attitude at the Top DOT Form 7100 – Type of Pipe, Miles, Class of Pipe Leakage Rate

11. 2006 CATEGORY 2/3 OPEN CLAIMS GENERAL LIABILITY GAS EXPLOSION9 FIRE4 POLLUTION1 ELECTRIC CONTACT1 FLOOD2

12. TIMES CHANGE  1986 - The Utility Industry Had Never Suffered a GL or D&O Loss in Excess of $25,000,000.  1996 - EIM Had GL Losses Totaling $98,200,000 and D&O Losses Totaling $57,650,000.  2006 - EIM Had Incurred GL Losses Totaling $221,587,000 and Incurred D&O Losses Totaling $510,781,000.

13. CLAIMS PAID AND RESERVED

14. CLIMATE CHANGE CONCERNS EIM POSITION: -Currently, no plans to exclude “climate change.” -Currently no plans to roll out “climate change insurance.”

15.  New Plants Being Built/Retrofit/Repowered  Risks of Greater Storm Activity  Liability Arising from Noncompliance with Regulations  D&O Suits - Mismanagement - Securities Class Actions UNDERWRITING CONCERNS

16. EIM’S OTHER PRODUCTS

17. DIRECTORS AND OFFICERS LIABILITY  $63,150,328 Gross Premium Written  91 EDO Policyholders  $38M Average Limit  $44M Average Attachment Point  45% of D&O Policies Written for Maximum $50M Limit

18. FIDUCIARY LIABILITY  $6,349,807 Gross Written Premium  $22.6M Average Limit  $38M Average Attachment Point

19. PROPERTY UNDERWRITING CRITERIA FOR MAXIMUM CAPACITY  Basic Capacity $35M Except Tier One Wind and Zone One CAT EQ. (Tier One Equals the East Coast Counties Around Florida and the Gulf Coast.)  Primary or Excess  Quota Share

20. 2006 A. M. BEST’S RATING: A OUTLOOK: STABLE “The rating reflects the Company’s excellent capitalization, historically strong operating returns, and conservative leverage position.” ENERGY INSURANCE MUTUAL

21. For more information, please visit www.eimltd.com. Email:jdominguez@eimltd.com Call:Jill Dominguez (813) 287-2117 ext. 110