halted because MIPS does not have the funds to continue. If Eagle Mountain is ultimatel_v completed, the state utilities commission will determine the extent to which MIPS magi,r recover its construction costs through its rate structure. The commission's rulings are difcult to predict, but it is quite possible that the commission will not allow MP5 to include all of the Eagle Mountain construction costs in its \"rate base.\" If Eagle Mountain were abandoned today, none of the construction costs would be recoverable. The related writeoff would amount to over TD percent of MPS's stockholders equity. but the company would survive. MPS's management. however, remains committed to the completion of the Eagle Mountain facility. Management has obtained authorization from the company's stockholders to issue $500 million in bonds and additional shares of common stock to nance completion of the project. If MP5 incurs this additional debt and is still not able to make Eagle Mountain fully operational, it is doubtful that the company,? can avoid bankruptcy. In short, management has elected to gambleall its chips are riding on Eagle Mountain