2004 Formal Negotiations Begin

 For the past several weeks the Company and Union Committees have been discussing, analyzing medical costs and trends for the next couple of years with the assistance of our actuaries.  At this time it is believed that medical costs will continue to escalate at approximately 11% for the year 2005 and beyond.

 Earlier this week the company presented the union with a new benefit package proposal similar to the package that non-bargaining unit employees have at this time which includes; changes to the medical, dental, life insurance and long term disability plans.  The proposal also includes a new short term disability plan, vision plan and a flexible spending account.

 In addition to the benefit proposal, the company provided the Union with a brief summary with no details or written proposals of what they intend to propose at the bargaining table for each of the business units which includes;

 Corporate

1. Changes to the Job Posting procedure in an effort to streamline the process to eliminate the ongoing problems.  Currently we have a joint team working on identifying and developing solutions to the problems with the process.  The team will meet with committees during our next session to provide us with an update of their findings thus far.
2. Changes to the grievance procedure to stream line that process as well.

Nuclear

1. Divide both sites into separate entities.
2. Reduce operations classifications to two, Licensed and Non-Licensed without affecting current employees.
3. Changes to the current rules for rescheduling non-shift employees.
4. Re-define responsibilities and accountabilities of the General Maintenance Leaders
5. Adjustments to the overtime provisions concerning pay and the overtime list.

 Power Systems

1. Requirements for improved call out response.
2. Increased flexibility for changing dispatch center and work headquarter boundaries.
3. Expanded accountabilities for Operations Clerical positions and C&D Specialists.
4. Extendo Stick training for additional Bargaining Unit personnel.
5. Modification to the afternoon schedule starting time.

 Transmission/Substation

·        Changes to the current rules for rescheduling employees for outage work.

·        Requirements for improved call out response for substation.

 Power Generation

1. Nothing presented.

 Formal discussions will continue following 3^rd step grievance meetings next week.  The Committee will continue to analyze and cost out the effects and or benefits of the medical proposal in preparation for our next meeting and will be presenting the Union proposal at that time. We will be posting regular Negotiation updates on the web now that formal negotiations have begun. Please check the web site each week for the latest news.