September 30, 2003

Consumer Allocation for 2004

Under provisions of the Electric Utilities Act, each year the Balancing Pool is required to forecast its revenues and expenses and to determine whether any excess or shortfall of funds be allocated to, or provided by, electricity consumers.

Based on this forecast we are advising there will neither be a consumer charge collected nor a rebate paid in 2004. The allocation will continue to be reviewed for 2005 and all years thereafter.

Please contact the undersigned should you have any questions in this regard.

Yours truly,

Gary ReynoldsPresident and CEO