JILL DOMINGUEZVICE PRESIDENT-UNDERWRITINGENERGY INSURANCE MUTUAL

MARCH 30, 2007HYATT REGENCY AUSTINAUSTIN, TEXAS

A PRESENTATION TO THE AMERICAN PUBLIC POWER ASSOCIATION

RISK MANAGEMENTAND

INSURANCE COMMITTEE

EIM’S PRODUCTSGENERAL 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

MEMBERSHIP MIX

MEMBER RETENTION RATE

2006 97%2005 96%2004 99%2003 96%2002 99%

EIM PUBLIC POWER MEMBERS

City of AnaheimCity of Richmond, Dept. of

Public UtilitiesCity Utilities of Springfield, MODistrict of Columbia Water and

Sewer AuthorityGrand River Dam Authority Imperial Irrigation DistrictLos Angeles Department of

Water and PowerLong 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

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

EPPIC MEMBERS IN EIM’SEXCESS LIABILITY PROGRAM

City of Anaheim Imperial Irrigation District Modesto Irrigation District Orlando Utilities Commission

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

GENERAL LIABILITY ENHANCEMENTS EPLI

47.7%

Workers’ Compensation21.3%

Drop Down Joint Venture40.6%

Drop Down Over Specific Aggregates64.5%

GENERAL LIABILITY UNDERWRITING “HOT BUTTONS”

ELECTRICSystem Safety and Reliability

Vegetation Management

Process Safety – Attitude at the Top

Dams – FERC Inspection Reports, Significant and High Hazard

GASSystem Safety

Asset Repair/Replacement

Process Safety – Attitude at the Top

DOT Form 7100 – Type of Pipe, Miles, Class of Pipe Leakage Rate

2006 CATEGORY 2/3 OPEN CLAIMSGENERAL LIABILITY

GAS EXPLOSION 9FIRE 4POLLUTION 1ELECTRIC CONTACT 1FLOOD 2

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.

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

General Liability Directors and Officers

CLAIMS PAID AND RESERVED

CLIMATE CHANGE CONCERNS

EIM POSITION:-Currently, no plans to exclude “climate change.”

-Currently no plans to roll out “climate change insurance.”

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

EIM’S OTHER PRODUCTS

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

FIDUCIARY LIABILITY

$6,349,807 Gross Written Premium

$22.6M Average Limit

$38M Average Attachment Point

PROPERTY UNDERWRITINGCRITERIA 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

2006 A. M. BEST’S RATING: AOUTLOOK: STABLE

“The rating reflects the Company’s excellent capitalization, historically strong operating returns, and conservative leverage position.”

ENERGY INSURANCE MUTUAL

For more information, please visit www.eimltd.com.

Email: jdominguez@eimltd.com

Call: Jill Dominguez(813) 287-2117 ext. 110