RE: 3 Year term Power Transaction

Peter/Chris:

Have we put the updated netting language in the contract? Would it ever come into play?

Regards,

Mark

-----Original Message-----
From: Keohane, Peter
Sent: Wednesday, August 22, 2001 6:16 PM
To: Gaffney, Chris; Haedicke, Mark E.
Subject: RE: 3 Year term Power Transaction

Chris/Mark, I am very familiar with the form and with the issues and I am happy with the contract, on the understanding that for any meters behind the LDC there is no "consumption/balancing risk" with the LDC - i.e. as it is a wholesale meter for a fixed volume, I am OK provided that if Domtar over/under consumes they are directly liable to the LDC for any balancing obligation. There is also the issue of the a new charge "at" the Bruce Delivery Point which does not uniformly affect the market price for all market participants, but I understand that is a commercial risk Paul has accepted. Peter.

-----Original Message-----
From: Gaffney, Chris
Sent: Wednesday, August 22, 2001 3:47 PM
To: Haedicke, Mark E.; Keohane, Peter
Subject: 3 Year term Power Transaction

Mark/Peter - Attached hereto is an Electricity Purchase Agreement pursuant to which Enron Canada Corp. would sell power to Domtar Inc. The agreement is in the form that we have been using for deals back-to-backed with the British Energy position (similar to the Ivaco, Atlantic Packaging, TransCanada and Sunoco agreements). Please let me know if you have any questions with respect to the agreement. We hope to be in a position to execute within a week.

Peter, we have discussed this agreement and the modifications required to take into account the revisions in the British Energy deal. The only other changes that I have made are simple modifications to take into account Domtar's request for multiple delivery points (some of which are behind LDCs but still considered wholesale as they are registered with the IMO).

Regards
Christopher J. Gaffney
Senior Legal Counsel
Enron Canada Corp.
416 865 3711

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