Re: Language discussion for EES Confirms

FYI,
David
---------------------- Forwarded by David P Dupre/HOU/ECT on 11/22/99 07:17
AM ---------------------------

Dale Neuner on 11/19/99 05:14:07 PM
To: David P Dupre/HOU/ECT@ECT
cc:
Subject: Re: Language discussion for EES Confirms

If I understand you, we need to contemplate a quoted negative price; so, I
would suggest that we incorporate the langauge into the Floating Price
definition, something to the effect of:

"the average of the prices (whether positive of negative) for each Off-Peak
Hour ......"

David P Dupre
11/19/99 10:22 AM
To: Dale Neuner/HOU/ECT@ECT
cc:
Subject: Language discussion for EES Confirms

Dale:

Greg Woulfe and John Zufferli, East Desk Power traders, requested that the
following language be deleted on
their confirms.

"In the event that a price for any Off-Peak Hour determined as set forth
above is equal
to or less than zero, then the price for such Off-Peak Hour shall equal
Zero".

Sara Shackleton, however,and I think that this statement should be modified
to reflect the trader's comments:

to maintain a negative price if indeed it should occur.

Joe Hunter and I met with them yesterday morning, and they are still
interested in removing this sentence.

Please let me know your thoughts on the origin and "philosophy" of why this
statement was originally incorporated
into our language. Sara said that this may have been introduced as part of
the West Desk confirms on previous deals.

Thanks!

David
3-3528