FW: Ancillary Services Exchange Customer Document-Version 1

-----Original Message-----
From: "Doug Andrews" <cfar@attglobal.net<@ENRON
Sent: Wednesday, June 27, 2001 11:44 AM
To: Vaughn Bend; Roger Thomey; Roger Drury; robert mahan; Rob Imbeau; Hemstock, Robert; Rick Funk; Richard Stout; Richard Hornowski; Renee Usselman; Renata Kurschner; Peter Schubert; Peter Karl; Murray Samuel; Murray Nelson; Mike Filippelli; Marvin Mah; Martin Merritt; Luciano Dalla-Longa; Kris Olsen; Kevin Kohler; Kelly Dukart; Kate Graeme; John Speights; Joe Bradford; Jim Pollock; Jim Oosterbaan; Janine Watson; J. Boshart-McCleary; Glenn MacIntyre; Gary Hagerty; Doug Heath; Doug Crichton; Donalda MacBeath; Don Smiegielski; Don Gerke; Derek Laishley; David Carmichael; Dave Axford; Dallas Zimmer; Courtney Hamm (Calgary); Chris Nebrigich; Chris McDowall; Cheryl Runge; Carl Fuchshuber; Calvin Offereins; Barb Baker; Albert Wong; Davies, Derek; Zufferli, John
Cc: Terry Booth; Sheldon Fulton; Russell Andrews; Russ Crawford; Mike Scally; Doug Coreman; Dave Schroeder; Brock John; Bob Hesson; Darla Wilson
Subject: Ancillary Services Exchange Customer Document-Version 1

Colleagues
Arising from comments received from Friday to yesterday, Watt-Ex has
incorporated a number of changes into this executable Version 1 of the
referenced document.

We are attaching a blackline copy and clean copy of this document for your
perusal. We believe we have been able to accommodate most of the change
requests -- but not all. We would be pleased to respond to any comments you
may have on the changes as well as those we have not included.

The key modifications from Draft 3 to this Version 1 relate to the
following:
1) 3011. and 3209. Failure to Supply: Liquidated damages have been capped
both for non-System Events and System Events. The original context of costs
attributable to liquidated damages included WSCC penalties -- the caps serve
to limit the total amount of liquidated damages claimed against the failed
supplier. In addition, the penalties under (b) (i) in both sections have
been removed.
2) 204. Code of Conduct: This section has been beefed up to provide a
directive concerning any potential market manipulation that could cause WSCC
penalties to be applied.
3) 116. Mediation and Arbitration Procedure: The Mediation procedure has
been modified to allow the parties the option of proceeding directly to
arbitration if they so wish and have applied a finite completion time on the
process.
4) Schedule 6, 6000. General: Applied direction of applicability of
sections to Transmission Administrator
5) 6004.08 Additional Security: Due to exposure on liquidated damages,
Watt-Ex is requiring that Sellers post security for same within 90 days
(this is roughly timed for October trading) unless there is sufficient
Receivables to cover.

We would again request your indulgence to review and execute this Version 1
as soon as possible. In this regard, we request that customers complete
pages 1-3 of the document plus individual Schedule 2's for each Ancillary
Service Facility and fax a signed copy of pages 1-3 plus the Schedule 2's to
Watt-Ex to immediately activate your trading privileges. Please mail the
originals to Watt-Ex, we will execute and return your file copy.

If there are any outstanding items you wish to have considered/reconsidered,
Watt-Ex will accept such written comments for consideration in a future
version of this Customer Document.

Watt-Ex is also prepared to provide any of the following documents if it
will assist you in attaining comfort with all the attendant infrastructure
surrounding the operations of the Exchange. Please advise if you wish a
copy of any/all of these documents.

1) Alberta Securities Commission Exemption Order
2) The NCM insurance binder document for the credit backstop arrangements
3) Deposit Agreement with Watt-Ex's Trustee, Royal Trust Corporation of
Canada
4) Confirmation of ESBI Alberta Ltd.'s Credit Approval to $20 million.

If you have any questions or comments, please contact the undersigned by
return e-mail or call 403-210-8222, 403-210-2144 or 780-940-2820 (cell).
Thanks
Doug Andrews

- Blackline Ancillary Services Market Agreement ver1 final .pdf
- Ancillary Services Market Agreement ver1 final.pdf