New Global Risk Standards for Trading

To all:

Over the past few months, Energy Operations has formally established global
standards. Exception reporting will officially begin for the West Desk on
Monday, November 20th. The exception reporting around these standards will:
help us gauge our performance and highlight areas for improvement
better allocate resources to issue areas
ensure individual and global business controllers are up to date as to
arising issues

To accomplish this, numerous requirements have been established. The
requirement that affects trading is as follows:

Transactions are recorded accurately and timely (completeness, accuracy)
Transactions are recorded with 100% accuracy and valued appropriately in an
approved risk system for the applicable product
Transactions are input into Enpower or TAGG on date of trade (prior to calc)

HOW THIS AFFECTS WEST TRADERS:

The Risk group in Portland and Confirmations group in Houston will now begin
reporting any exceptions to the above requirement on a daily basis. Any
deals entered late, incorrectly or changed after the calc will require full
written explanation to the Global Risk Controls group (this includes trader
name). The materiality of the deal is not relevant, you can be written up
for 1 MW deals or 200 MW deals. The Global Risk Controls group is looking
for flaws in the process, whether it be people-related or system related.

This exception reporting begins on Monday. Please come to the Risk group
with any questions you may have, we would like the West Desk to appear on the
exception report as infrequently as possible. If you have any special deal
types that you believe will be in violation of the above requirement, please
notify Risk so we can communicate this to Global Risk Controls.

Thanks for your help in this matter,

West Risk