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| Dr. Harris: |
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| I would like to thank you for personally taking the time to closely review my application. |
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| Though I am disappointed with the results I am still determined to attend The TEXAS Graduate School of Business next year. |
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| I understand how competitive the process has become, but I felt that with my work experiences, recommendations, personality, extracurricular activities, etc. that this would compensate for my disability. |
| s-5
| After talking with Professors Titman, Ronn, Brown and Jemison, I was sure that the School was the right place to get the education I was looking for. |
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| I am still certain that the School is the best place for getting a great graduate-level education, so I want you to know that I am going to do whatever it takes to get in next year. |
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| I plan on taking two or three graduate level finance courses at the University of Houston this Summer and Fall to demonstrate to the Admissions committee that I can compete at the graduate level. |
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| I also plan on retaking the GMAT test. |
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| Due to my disability, this will be a monumental task; but I am determined to prove to the Committee that I can be successful at The TEXAS Graduate School of Business. |
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| I would like to come down to Austin this spring to meet with you to further discuss my application file and to personally meet you. |
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| If you think of anything else I can do to strengthen my overall application file for next year, please let me know. |
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| Take care and hope to hear from you soon. |
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| Sincerely, |
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| Ben Rogers |
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| Professor Ronn: |
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| I would like to thank you for taking the time to recommend me to the MBA Program. |
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| In the end, the results were not favorable. |
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| I understand that it is a competitive process, but I felt that with my work experiences, recommendations, extracurricular activities, etc., that this would help my chances and possibly compensate for my disability. |
| s-19
| After talking with you and Professors Titman, Brown and Jemison, I was sure that UT was the right place to continue learning about energy-finance. |
| s-20
| I am still sure that UT is the place for getting an excellent graduate-level education, so I want you to know that I am going to do whatever it takes to get in next year. |
| s-21
| I plan on taking two or three graduate level finance courses at the University of Houston this Summer and Fall to demonstrate to the Admissions office that I can compete at this level. |
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| I also plan on trying to retake the GMAT test. |
| s-23
| Due to my disability, this will be a monumental task, but I am determined to prove to the Admissions commitee that I can excel with the work at The Texas University Graduate School of Business. |
| s-24
| Thanks again for taking the time to listen and talk with me. |
| s-25
| It has been a pleasure meeting you and I hope we can continue to talk about energy and finance in the future. |
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| Also, if you can think of anything else I can do to strengthen my overall application file for next year, please let me know. |
| s-27
| Take care and hope to hear from you soon. |
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| Sincerely, |
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| Ben Rogers |
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| Professor Titman: |
| s-31
| I would like to thank you for taking the time to recommend me to the MBA Program. |
| s-32
| In the end, the results were not favorable. |
| s-33
| I understand that it is a competitive process, but I felt that with my work experiences, recommendations, extrcurricular activities, etc., that this would help my chances and possibly compensate my disability. |
| s-34
| After talking with you and Professors Ronn, Brown and Jemison, I was sure that UT was the right place to continue learning about energy-finance. |
| s-35
| I am still sure that UT is the place for getting an excellent graduate-level education, so I want you to know that I am going to do what ever it takes to get in next year. |
| s-36
| I plan on taking a couple of graduate level finance courses at the University of Houston this Summer and Fall to demonstrate to the Admissions office that I can compete at this level. |
| s-37
| I also plan on trying to retake the GMAT test. |
| s-38
| Due to my disability, this will be a monumental task, but I am determined to prove to the Admissions committment that I can do the work at The Texas University Graduate School of Business. |
| s-39
| Also, I would like to continue our dialague regarding creating an Energy-Finance Private Equity Fund at UT. |
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| I know that with my industry-wide and investment banking contacts that I can help raise capital for the fund. |
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| I am very interested in energy-finance and think that your idea is a very good. |
| s-42
| Thanks again for taking the time to listen and talk with me. |
| s-43
| It has been a pleasure to meet with you and I hope we can continue to talk about energy and finance in the future. |
| s-44
| Also, if you think of anything else I can do to strengthen my overall application file for next year, please let me know. |
| s-45
| Take care and hope to hear from you soon. |
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| Sincerely, |
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| Ben Rogers |
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| Let me know if you have any questions. |
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| Thanks |
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| Ben |
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| Sorry about that, I was working on the Teco O&M costs. |
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| Thanks |
| s-53
| Ben |
| s-54
| Please send me an excel spreadsheet which depicts the value that you see associated with the heat rate spread option. |
| s-55
| I want to make sure that I understand exactly how you propose valuing the transaction and how this value would be booked. |
| s-56
| As such, please provide the following detail: |
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| Will we be valuing/booking a series of monthly call options or a series of daily call options? |
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| What power curve are we valuing the deal against - PJM East or West Hub? |
| s-59
| Please send me the current fuel curve that you are converting to $/MWh to value the deal? |
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| What volatilities are you using to value the options - monthly volatilities or intra-day volatilities or a blend of the two (if blending please show me what formula you using to blend the two vols)? |
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| What expiration date are you using, i.e.: for monthly call options the 15th of the relevant month, and for daily options? |
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| What correlation are you assuming, 15% flat for twenty years? |
| s-63
| Are you deducting all operating expenses from the value of the option? |
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| Are you using the 'SPRDOPT' Exotic Options function to value the option? |
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| Are you using the $/MWh VOM dollar amount as your strike? |
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| Has Don provided the fixed payment stream? |
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| This stream should be covering both P&I and not just principal. |
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| Yvan, and Ben, please provide answers to these question via written correspondence so that their is limited probability of misunderstanding. |
| s-69
| Thank you both very much for your time and help thus far. |
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| Furthermore, I would like to reiterate that RAC's goal, prior to quoting any credit reserve, is to be 100% confident that: (i) the methodology that is being employed is consistent among the internal groups; and (ii) the inherent value of the price risk management contracts matches. |
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| This enables RAC to manage the associated risk during the life of the transaction both effectively and appropriately. |
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| Regards, |
| s-73
| Christopher |