Alberta PPA Financing

I want to get a handle on how termination payments are handled vis a vis the
collateral obligations, particularly where the Index moves down relative to
the forward price and its effect on Swap 1.

@ $5.00 (assuming $5.00 example forward price) there is no issue. There is
no collateral obligation and Swap #1 settles at $300MM and Swap #3 settles at
$0.

@ $6.00 (assuming $5.00 example forward price) there is $15MM collateral
obligation of ECC to Swapco on Swap #1 and $15MM collateral obligation of RBC
to ECC on Swap #3 each with $45MM collateral threshold, as Swap #1 settles at
$360MM due from ECC to Swapco and Swap #3 settles at $60MM due from RBC to
ECC. This seems to make sense. Swapco has a claim against ECC for $360MM
with Enron Corp. Guarantee and $15MM of collateral. ECC has a claim against
RBC for $60MM with $15MM of collateral.

@ $4.00 (assuming $5.00 example forward price) there is $15MM collateral
obligation of Swapco to ECC on Swap #1 and $15MM collateral obligation of ECC
to RBC on Swap #3 each with $45MM collateral threshold, as Swap #1 settles at
$240MM due from ECC to Swapco and Swap #3 settles at $60MM due from ECC to
RBC. This is where I get lost. Swapco has a claim against ECC for $240MM
with Enron Corp. Guarantee but has given $15MM of collateral when it owes
nothing. How is the collateral applied when it owes nothing. RBC has a
claim against ECC for $60MM with Enron Corp. Guarantee and $15MM of
collateral. This part seems to make sense.

Somebody smarter than me needs to explain.