Exhibit 99.1
Second Quarter 2002 Earnings Estimates
1. Revised 2002 Earnings Estimate
Earnings Estimate Given at First Quarter Call $2.60 - $2.85
Less:
Lower Wholesale Prices and Velocity ($0.62) - ($0.74)
Higher Coal Costs ($0.13)
Reduced Gas Sales ($0.08)
Operation & Maintenance Savings $0.13 - $0.20
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Revised Earnings Estimated Range $1.90 - $2.10
2. Market Assumptions in 2002 Earnings Guidance
Previous Estimate New Estimate for 2002
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Earnings Guidance $2.60 - $2.85 $1.90 - $2.10
Wholesale Power Price $32.00 - $41.00 $32.00 - $35.00
Velocity of Trading (1) 1.75 - 2.30 1.50
Spark Spread Not sufficient for peaking generation
Sensitivities that could cause results outside of the "earnings estimate range":
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Extreme weather FERC price caps
Market prices Unit availability
Economic activity
Hydro power utilization
3. Historical Market Data
Spark Spread (2) Velocity of Trading (1)
2nd Qtr Only Annual 2nd Qtr Only Annual
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2002 5.52 - 1.61 -
2001 156.73 74.52 1.89 1.93
2000 70.28 75.49 1.88 1.88
1999 14.13 13.07 1.80 1.80
4. Planned Capital Expenditures
2002 2002 - 2006
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Capital Expenditures per 2001 Form 10K $391 Million $1.8 Billion
Reduction ($111 Million) ($0.4 Billion)
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Revised Capital Expenditures $280 Million $1.4 Billion
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(1) Ratio of total sales (including jurisdictional) to total generation
(2) Source: RDI
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