Market Opening

Rick, this idea of a 500MW option was first raised by me in February as a solution to the concern about the availability of the first Pickering A unit (515MW) during the Winter 2001-2002. It was dismissed summarily at that time.
----- Forwarded by Aleck Dadson/TOR/ECT on 06/22/2001 11:37 AM -----

Rob Milnthorp/ENRON@enronXgate 06/22/2001 11:13 AM To: Paul Devries/TOR/ECT@ECT, Garrett Tripp/TOR/ECT@ECT cc: Aleck Dadson/TOR/ECT@ECT Subject: Market Opening

Garrett/Paul - Can you guys work with the North East desk to price out a 500MW option at the New York/Ontario intertie as an insurance policy for the Ontario government re market opening. You will recall that this was something we had suggested a while back and didnt receive much support. However, following Lavorato's meeting with Harris, Lavo is adamant that we send a term sheet to Harris directly outlining both an call option structure and a swap structure.

Second, it is quite apparant to me that everything hinges on the September readiness report. If its favorable, I think there is a good chance of a fall market opening. With that said however, we are in the hands of the IMO and the OEB. I'm comfortable that we can continue to influence the IMO to produce a favorable announcement but I dont know what we can do to ensure that the OEB says its ready. Any suggestions, comments? I dont want to be in a position that one LDC could halt market opening.

Regards
Rob