Restructuring (cont.)

The restructuring plan that GMP has proposed is summarized in the following diagram:

Under the GMP plan:

• Power generation (provided by GenCos) would be open to competition.

• The price of electricity would be established by a power exchange, similar to a stock exchange, and by contracts between customers and suppliers.

• System reliability would be maintained by a regulated, independent regional organization--an independent system operator (ISO).

• Regulated transmission and distribution companies (TransCos and DisCos) would carry the power to the customer.

• The customer would buy electricity and related services and products from the retail company (RetailCo) of his or her choice.

• An existing utility could establish a holding company that would own both regulated and unregulated operations.

The development of retail electric sales companies competing for customers is destined to unleash creative forces, leading to innovative products and services and novel marketing efforts, all designed to offer varied and valuable choices for customers.