UNDERWRITING OVERVIEW

JILL DOMINGUEZVICE PRESIDENTUNDERWRITING

EIMS CONCERNS2003 and 2004All 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

Members WishesKeep a large amount of capacityKeep broadest form availableDo not hit all Members with the same increase in premium- differentiate among the Members

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

2003 COMPARED TO 2002

D&O Average Increase:300%Range:4% - 4,000%

GL Average Increase:53%Range:5% - 370%

*Not Every Member Given Same Increase

Chesapeake Energy Corp.

International Transmission Company

JEA and FPL Group d/b/a/ St. Johns River Power Park

NRG Energy, Inc.NEW MEMBERS IN 2003

TOTAL MEMBERSHIP

CHANGES TO 2003 POLICYBrought 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

EIMS PRODUCTS SUCCESSFUL INMAINTAINING LARGE AMOUNT OF CAPACITYGENERAL LIABILITYCapacity $100M as of 01/01/04Availability Depends on Risk

D&O/GENERAL PARTNERCapacity $50M as of 01/01/04$10M to $50M Available Depending on Risk

EXCESS FIDUCIARY LIABILITY$25M Available Depending on Risk

PropertyPrimary and Excess Quota ShareCapacity $15M

UPDATE BYLINE OF BUSINESS

EXCESSDIRECTORSAND OFFICERSLIABILITY

EIMS GOALS AND MEMBER PRIORITIESWITH RESPECT TO EXCESS D & OMaintain CapacityMaintain Broad CoverageUnderwrite and Price Each Risk on Its Individual Merits - Do Not Take Broad Brush ApproachAdjust Pricing on All Accounts - Book Under Priced

EVALUATION FACTORSHOW DO WE DIFFERENTIATE RISK?Private CompanyLow RiskPublic PowerGas, Water, E&PElectric, Electric/GasNuclearMerchant, Energy TradingHigh Risk

SUBMISSIONS ANDADDITIONAL INFORMATIONApplications Financial InformationCorporate GovernanceLoss Information/Litigation ProfileCopies of Underlying Terms and ConditionsChanges Not Reflected in Published Financial Material/News ReleasesAdditional QuestionsTimely Presentation of Coverage Issues

CORPORATE GOVERNANCEBoard Composition (Independence of Board)

CGQ Score (ISS)

Meetings and Attendance

Evaluation of CommitteesAudit CompensationNominating

Rules Regarding Insider Trading

FINANCIAL INFORMATIONPublic or PrivateOverall Financial HealthRatings Agency Actions and EvaluationsComparison to Like CompaniesLiquidity, Debt SituationBusiness Strategy Restatements

LITIGATIONClaims Reported to EIM and Their Status

Litigation Disclosed in 10Ks and 10Qs

Any New Litigation

EXCESSFIDUCIARYLIABILITY

EXCESS FIDUCIARY LIABILITY-Maximum Limit of Liability Offered to Members: $25MMember Must Have at Least $35M in Underlying Limits

31 Members purchase Excess Fiduciary

SUBMISSION REQUIREMENTSUnderlying 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)

EXCESS FIDUCIARY LIABILITYPlan AssetsNumber of ParticipantsBenefit Plan TypesDefined Benefit (Pension Plans)Defined Contribution (401k Type Plans)Health and Welfare Plans

EXCESS FIDUCIARY LIABILITYALL PLANSPlan Asset SizeDiversification of AssetsQuality of Plan Assets (Blue Chip Companies, High Tech,etc.)Percentage of Company Stock in PlanAsset Type (Stocks, Bonds, Real Estate, Party in Interest Transactions)

DEFINED BENEFITOver Funded or Under Funded Meeting Contribution Requirements

DEFINED CONTRIBUTIONCompany Match Stock or Cash?Restriction(s) on Trading on AccountsNumber of Investment Options AvailableAbility of Participants to Buy/Sell Asset Classes

PROPERTY

PROPERTYCURRENTLY INVOLVED WITH 75 TOTAL PROGRAMSEIM$ 1,612,000EIM and NEIL$24,531,000NEIL Fronts$ 7,124,000

PROPERTYPARTICIPATION INMEMBERS PROGRAMS

12/31/20011712/31/20022512/31/200340

PROPERTYOPEN CLAIMS ACTIVITY2001 12002 6200311

PROPERTYPlease 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 EIMs involvement.

EIM SUBMISSION PROCEDURESubmission at Least 4560 Days Lead TimeDetailed Loss Prevention Inspection ReportsA Minimum of Five Years Loss ExperienceA Listing (Preferably Electronic) of Locations and Values Including Detailed Address InformationBusiness Interruption WorksheetsSample Policy FormCurrent and Proposed Specs and Limits

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

UNDERWRITING LIMITSCapacity 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

EXCESSGENERALLIABILITY

EXCESS GENERAL LIABILITYExcess form can also include: Excess EPLIExcess Workers CompExcess Professional Liability ($65M max sublimit)

EXCESS GENERAL LIABILITY

Exposure Changes - OperationsSafety and MaintenanceDam Inspection ReportsAEGIS Risk Assessment Reports if AvailableTariffs information on liability for FTSDOT 7100 Reports for PipelinesLoss Information

EIM TERRORISM POSITION

CASUALTYPROPERTYTRIA-Certified is offered.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.

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

HOW ARE WE DOING?2003 RISK MANAGERS SURVEYEIM 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 Agree96% Agree/Strongly Agree

177 at year end 028 lost due to mergers or being included in parent programThree left over price- were not long term Members of EIM all three members less than 3 years.