1. Highlights of Midwest ISO: 2004 State of the Market Report and Day-2 Energy Markets Prepared by: David B. Patton, Ph.D. Independent Market Monitor Midwest ISO April 13, 2005

2. Monthly Average Electricity and Fuel Prices Cinergy Day-Ahead Electricity Prices -- 2004

3. Upstream-Downstream Prices and TLR Events Selected NIPSCO Flowgates

4. TLR Events and Transactions Curtailed 2003 to 2004

5. Disposition of Reservation Requests 2002-2003

6. Conclusions: Day 1 vs. Day 2 Markets The transmission reservation process and the TLR process has been implemented competently by the ISO.The transmission reservation process and the TLR process has been implemented competently by the ISO. However, our analysis indicates that these processes are substantially inferior to the Day 2 markets for managing congestion, utilizing available transmission capability, and maintaining reliability.However, our analysis indicates that these processes are substantially inferior to the Day 2 markets for managing congestion, utilizing available transmission capability, and maintaining reliability. üThe Day 2 markets will dispatch the most effective resources to manage congestion. üPrices will more fully reflect the congestion and losses under the Day 2 markets, sending more accurate short-run and long-run economic signals. üThe real-time economic redispatch (every 5 minutes) will allows transmission interfaces to be operated closer to the rated limits (e.g., to have lower transmission reservation margins and other operating offsets). üThe relief available from redispatch is much more predictable and timely than relief through TLR or emergency redispatch, which should contribute to improved reliability.

7. Initial Results of Midwest ISO Energy Markets: April 1 to April 7, 2005

8. Day-Ahead Midwest ISO Energy Prices April 1 to April 7, 2005

9. Real-Time Midwest ISO Energy Prices April 1 to April 7, 2005

10. Daily Average Price Differences and Virtual Purchases April 1 to April 7, 2005

11. Virtual Load and Supply in the Day-Ahead Market April 1 to April 7, 2005

12. Average Day-Ahead Generation and Imports April 1 to April 7, 2005

13. Average Day-Ahead and Real-Time Supply April 1 to April 7, 2005

14. Day-Ahead and Real-Time Net Imports April 1 to April 7, 2005

15. Day-Ahead Net Imports and Prices: PJM-CE Interface April 1 to April 7, 2005

16. Real-Time Net Imports and Prices: PJM-CE Interface April 1 to April 7, 2005

17. Summary of Cost-Based Offer Violations April 8, 2005