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Thaw fish, if frozen. Rinse fish; pat dry with paper towels. Set aside.
In a large skillet combine combine wine, water, sweet pepper, capers, garlic and crushed red pepper. Bring to boiling; reduce heat. Simmer, uncovered, for 7 minutes, stirring occasionally.
Place fish in a single layer in the wine mixture in the skillet. Sprinkle fish with salt and pepper. Spoon liquid over fish. Return to simmer. Cook, covered, for 4 to 6 minutes per 1/2-inch thickness of fish or until fish flakes easily when tested with a fork. Remove fish to serving platter and pour poaching liquid into a small serving pitcher. Drizzle cooked fish with olive oil and a little of the poaching liquid. Sprinkle with basil. Serve with remaining poaching liquid.