Dear Members,

Scott Carmilani, representing ABIR, and I met with Garry Madeiros of BELCO as they requested an opportunity to update us on developments since the power outage. Much of what we discussed is attached in the following three documents – a Press Release dated September 29, 2005, the report of the investigation by E.A. Technology, and lastly a memo dated October 4th provided by BELCO summarising Gary´s recent speech to the Rotary Club.

The attached not only makes interesting reading, but should give you an idea of the background to the power outage, the factors that led to it, and the corrective action that was, and is being, taken. It would appear that these corrective measures are well underway but that there is still a higher than normal exposure to an outage until the end of November as they are still working with “a compromised, reconfigured system that is not as stable as the one we had before the fire”, and this would appear to hold true until the installation of the temporary switchboard, which it appears is on track for completion by November 30th.

On a going forward basis BELCO believes that the chances of a repeat are extremely remote, but as we have seen, one can never say never. You should all make your own decisions as to the measures you take to protect your businesses against a recurrence and this can range from ensuring adequate and regular IT backup for computers, computer files, etc., right through to partial or full backup generator capacity.

If you have any specific questions, Garry (e-mail: gmadeiros@belco.bhl.bm), or Vince Ingham (e-mail: vingham@belco.bhl.bm) would be pleased to respond.

David Ezekiel
Chairman