1. UNDERWRITING OVERVIEW JILL DOMINGUEZ VICE PRESIDENT UNDERWRITING

2. EIM’S CONCERNS 2003 and 2004 All policies will be coming off multi-year programs priced in 1999 or 2000 when premiums were low and limits were high. Need to manage book to ensure we can continue to provide same products and services. EIM MANDATE: ADJUST PREMIUMS AND MANAGE LIMITS

3. Member’s Wishes  Keep a large amount of capacity  Keep broadest form available  Do not hit all Members with the same increase in premium- differentiate among the Members

4. 2003 IN REVIEW  4 New Members Joined EIM  169 Members as of 12/31/03  Gross Premium Earned $179,009,816  General Liability$ 71,529,808  D & O$ 64,283,611  Property$ 43,196,397

5. 2003 COMPARED TO 2002 2003 2002 Gross Premium Earned$179,009,816$120,707,000 General Liability$ 71,529,808$ 54,972,000 D&O$ 64,283,611$ 24,928,000 Property$ 43,196,397$ 40,807,000

6.  D&O Average Increase:300% Range:4% - 4,000%  GL Average Increase:53% Range:5% - 370% *Not Every Member Given Same Increase

7.  Chesapeake Energy Corp.  International Transmission Company  JEA and FPL Group d/b/a/ St. John’s River Power Park  NRG Energy, Inc. NEW MEMBERS IN 2003

8. TOTAL MEMBERSHIP

9. CHANGES TO 2003 POLICY  Brought Discovery Period provision back to one year for 100% of annual premium, in lieu of five years at 100% of annual premium  Separated Fiduciary Liability from Excess GL policy; gave a dedicated $25M limit instead of sharing limit with Excess General Liability  Took automatic reinstatement wording off policies  No major cutbacks in what our policies cover; still full follow form to AEGIS; still the broadest GL, Fiduciary, and D&O coverage available for utilities and Members of the energy services industry

10. EIM’S PRODUCTS… SUCCESSFUL IN MAINTAINING LARGE AMOUNT OF CAPACITY GENERAL LIABILITY  Capacity $100M as of 01/01/04  Availability Depends on Risk D&O/GENERAL PARTNER  Capacity $50M as of 01/01/04  $10M to $50M Available Depending on Risk EXCESS FIDUCIARY LIABILITY  $25M Available Depending on Risk Property  Primary and Excess Quota Share  Capacity $15M

11. UPDATE BY LINE OF BUSINESS

12. EXCESSDIRECTORS AND OFFICERS LIABILITY

13. EIM’S GOALS AND MEMBER PRIORITIES WITH RESPECT TO EXCESS D & O  Maintain Capacity  Maintain Broad Coverage  Underwrite and Price Each Risk on Its Individual Merits - Do Not Take Broad Brush Approach  Adjust Pricing on All Accounts - Book Under Priced

14. EVALUATION FACTORS HOW DO WE DIFFERENTIATE RISK?  Private CompanyLow Risk  Public Power  Gas, Water, E&P  Electric, Electric/Gas  Nuclear  Merchant, Energy TradingHigh Risk

15. SUBMISSIONS AND ADDITIONAL INFORMATION Applications Financial Information Corporate Governance Loss Information/Litigation Profile Copies of Underlying Terms and Conditions Changes Not Reflected in Published Financial Material/News Releases Additional Questions Timely Presentation of Coverage Issues

16. CORPORATE GOVERNANCE  Board Composition (Independence of Board)  CGQ Score (ISS)  Meetings and Attendance  Evaluation of Committees Audit Compensation Nominating  Rules Regarding Insider Trading

17. FINANCIAL INFORMATION Public or Private Overall Financial Health Ratings Agency Actions and Evaluations Comparison to Like Companies Liquidity, Debt Situation Business Strategy Restatements

18. LITIGATION Claims Reported to EIM and Their Status Litigation Disclosed in 10Ks and 10Qs Any New Litigation

19. EXCESSFIDUCIARYLIABILITY

20. EXCESS FIDUCIARY LIABILITY -  Maximum Limit of Liability Offered to Members: $25M  Member Must Have at Least $35M in Underlying Limits  31 Members purchase Excess Fiduciary

21. SUBMISSION REQUIREMENTS  Underlying carrier application and attachments  5500 or annual plan report for Defined Benefit and Defined Contribution plans (not health and welfare)  Company 10K or Annual Report (if not already supplied)

22. EXCESS FIDUCIARY LIABILITY  Plan Assets  Number of Participants  Benefit Plan Types  Defined Benefit (Pension Plans)  Defined Contribution (401k Type Plans)  Health and Welfare Plans

23. EXCESS FIDUCIARY LIABILITY ALL PLANS  Plan Asset Size  Diversification of Assets  Quality of Plan Assets (Blue Chip Companies, High Tech,etc.)  Percentage of Company Stock in Plan  Asset Type (Stocks, Bonds, Real Estate, Party in Interest Transactions) DEFINED BENEFIT  Over Funded or Under Funded  Meeting Contribution Requirements DEFINED CONTRIBUTION  Company Match – Stock or Cash?  Restriction(s) on Trading on Accounts  Number of Investment Options Available  Ability of Participants to Buy/Sell Asset Classes

24. PROPERTY

25. PROPERTY CURRENTLY INVOLVED WITH 75 TOTAL PROGRAMS EIM$ 1,612,000 EIM and NEIL$24,531,000 NEIL Fronts$ 7,124,000

26. PROPERTY PARTICIPATION IN MEMBERS’ PROGRAMS 12/31/200117 12/31/200225 12/31/200340

27. PROPERTY OPEN CLAIMS ACTIVITY 2001 1 2002 6 200311

28. PROPERTY Please consider advising your broker to send EIM your property submission. If a large portion of your property risk is with a direct writer or one carrier, we ask that you consider EIM’s involvement.

29. EIM SUBMISSION PROCEDURE  Submission at Least 45–60 Days Lead Time  Detailed Loss Prevention Inspection Reports  A Minimum of Five Years Loss Experience  A Listing (Preferably Electronic) of Locations and Values Including Detailed Address Information  Business Interruption Worksheets  Sample Policy Form  Current and Proposed Specs and Limits

30. COVERAGE CAN BE CONSIDERED ON A PRIMARY BASIS IF: The Account is a Quality-Engineered and Maintained Risk Deductibles Meet Minimum Guidelines for Equipment at Risk and Coverage Requested Rates Contemplate the Exposures Presented by the Risk, Claims Experience, and Form

31. UNDERWRITING LIMITS  Capacity Provided on a Quota Share Basis Only  Maximum Capacity is $15M  Earthquake, Flood, and Wind Exposures Will Be Monitored  Accounts with Zone A Flood and/or Catastrophe Exposures May Be Subject to Reduced Capacity and/or Limits and/or Higher Deductibles  Earthquake and Flood Must Be Written with Annual Aggregates

32. EXCESSGENERALLIABILITY

33. EXCESS GENERAL LIABILITY  Excess form can also include:  Excess EPLI  Excess Workers Comp  Excess Professional Liability ($65M max sublimit)

34. EXCESS GENERAL LIABILITY  Exposure Changes - Operations  Safety and Maintenance  Dam Inspection Reports  AEGIS Risk Assessment Reports if Available  Tariffs – information on liability for FTS  DOT 7100 Reports for Pipelines  Loss Information

35. EIM TERRORISM POSITION CASUALTYPROPERTY TRIA-Certified is offered. Do not exclude non- certified, but cap GL to $25M per Member/$125M EIM-wide. Non-certified is offered only for U.S. and Puerto Rico.

36. HOW ARE WE DOING? 2003 RISK MANAGERS SURVEY EIM follows reasonable, prudent and sound underwriting practices: 97% Agree/Strongly Agree

37. HOW ARE WE DOING? 2003 RISK MANAGERS SURVEY EIM provides added value in form of broad coverage, price stability, consistent limits, and financial strength: Overall, EIM meets my expectations in breadth of coverage and level of service: 90% Agree/Strongly Agree 96% Agree/Strongly Agree