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