FW: Phy East Pwr LD

Doug -- would you let me (and Leslie) know your thoughts on the below. The product descriptions Leslie is focussed on are attached, but I supspect we should explore what other product offerings you are hoping to put onto EOL, in the financial realm as well. --David

-----Original Message-----
From: Hansen, Leslie
Sent: Thursday, January 24, 2002 9:26 AM
To: Portz, David; Sager, Elizabeth
Subject: FW: Phy East Pwr LD

Since ERCOT is non-FERC jurisdictional, can we release the ERCOT products prior to UBS obtaining a FERC power marketing license?

David, have there been any changes in ERCOT that require us to update the descriptions attached below?

Leslie

-----Original Message-----
From: Walker, Chris
Sent: Wed 1/23/2002 4:24 PM
To: Hansen, Leslie
Cc: Meredith, Kevin
Subject: Phy East Pwr LD

Leslie,

Please remember to get us any changes to the current long description for the East Power Phy Fwd LD products. The current description is below. Also, below is the current location language for the ERCOT North and South products. Should these be updated as well? Is it possible for these ERCOT products to be released before the necessary legal licenses have been required for the other east power products?

Thanks,

Chris
3-7533

East Power Phy LD product type language:
A US Power Transaction with Enron Power Marketing, Inc. under which the Seller shall sell and the Buyer shall purchase a quantity of Firm (LD) energy equal to the Hourly Quantity at the Contract Price in accordance with the terms of the "Firm (LD)" definition in Schedule P of the Edison Electric Institute Master Power Purchase and Sale Agreement Version 2.1 (modified 4/25/00), including, without limitation, any defined terms contained therein, notwithstanding anything to the contrary in the master agreement, if any, that governs this Transaction. The Contract Price shall be as submitted by the Counterparty via the Web Site.

ERCOT North Zone 2001:
The transaction is for delivery or receipt of energy to any points within the North 2001 Zone as finalized pursuant to the action on April 17, 2001 by the Electric Reliability Council of Texas, Inc. ("ERCOT") Board of Directors, at Seller's daily election. If such North 2001 Zone is superceded by a zone or zones of different boundaries, Seller shall nevertheless be required, unless otherwise agreed by the parties, to deliver the energy to points within the geographical area coextensive with the originally defined North 2001 Zone. If and when possible for Seller to designate under pertinent ERCOT scheduling practices, any such points shall be connected to the ERCOT Transmission Grid by Transmission Facilities (as such terms are defined in the ERCOT Protocols) operated at or above 138kV.

ERCOT South Zone 2001:
The transaction is for delivery or receipt of energy to any points within the South 2001 Zone as finalized pursuant to the action on April 17, 2001 by the Electric Reliability Council of Texas, Inc. ("ERCOT") Board of Directors, at Seller's daily election. If such South 2001 Zone is superceded by a zone or zones of different boundaries, Seller shall nevertheless be required, unless otherwise agreed by the parties, to deliver the energy to points within the geographical area coextensive with the originally defined South 2001 Zone. If and when possible for Seller to designate under pertinent ERCOT scheduling practices, any such points shall be connected to the ERCOT Transmission Grid by Transmission Facilities (as such terms are defined in the ERCOT Protocols) operated at or above 138kV.