Rob,

Markets
My marks show how we believe the market would trade if the market were open today, considering neighboring markets, transmission/wheeling costs, and fuel costs.  More of a expected liquidation value vs. the current Ontario market players bids and offers.

The market on 3yr 7x24 is being shown by a broker: $46-$48, and on the wholesale side I doubt the bid is actually there, or if so it is only a piece deep (50MW).  

As a result, I would show an actually two way of $43-$47.50 and be coming from the sell side to the industrial customers who may pay in the $46-$47 range.

Peak, my 3yr mark is $52, but given the often bullish nature of new markets, I would be a bid for this summer and then look to offer the 3yr in the low fifties.  Upcoming changes in the Ontario system (Nodal vs. Zonal pricing) would have an effect on these term deals.


Staffing and Services

Trading
On the trading side, I will need to rehire personnel for the roles we laid off (an analyst and a temp IT programmer for fundies development).  Analyst wise, I am interested in bringing Brian Loy back if he is still available.  He has a good knowledge of the NUG contracts and is a good fit for a trading desk.  As our need for providing IMO Energy and Operating Reserve Services (bidding for specific NUGS and Dispatchable Loads) grows, it may be a good idea to bring Heather Mcillmurray over from the settlements group.  I have had initial discussions with Richard Crouch, Paul Devries and Heather on this matter.

Origination
This is your area of expertise. I would suggest two originators and an analyst.  If Dan Dorland is staying, he could continue on the origination side providing education to our new origination team, and being the analyst to assist the OEFC-NUG point personnel (Brian Loy's previous role).  

IT
Implementing the trading and VMS systems is a very important issue where timing will become an issue. I would suggest a short term (6mo) contract with Mike Marryott to manage the system's side of this process and to integrate with the Estate and NETCO on trading and settlements systems (specifically David Posten's VMS team).  His location should be in Toronto.  

Let's get on these issues as soon as possible.

On specific personnel, I would have liked to have retained Jeff Borg and Chris Gaffney. 

Office Space
Tembec, our neighbor on this floor, has often indicated that they are interested in some of our office space. If that interest remains, we could examine leasing all of the space passed the flat screens (the origination desk/pod, one conference room and storage area, not to include our server room).  This would leave us with space for up to 24 people, two conference rooms, & kitchen.  As an alternative, we could consider moving upstairs into the Enron Direct location.

Potential Conflict of Interest
I would suggest releasing employees that will not be part of Estate or UBS relatively soon.  Specifically, the group that is leaving here, but will be participating in the Ontario market.  UBS Ontario information and resources are proprietary and confidential.  If personnel are being kept on to wind-down specific activities, their access to UBS power & gas curves should be restricted.

As time becomes available, we should get together and discuss Ontario's business plan. 

Thank you
Garrett


 -----Original Message-----
From: 	Milnthorp, Rob  
Sent:	Wednesday, January 16, 2002 6:53 PM
To:	Tripp, Garrett
Subject:	RE: Ontario Update

Garrett, I take that these are your mids. Where would your 3yr two-way be?

 -----Original Message-----
From: 	Tripp, Garrett  
Sent:	Monday, January 14, 2002 1:31 PM
To:	Devries, Paul
Cc:	Milnthorp, Rob
Subject:	Ontario Update

	
CAD	Peak		7x24
1yr	$50.00		$42.75
3yr	$52.00		$44.00
5yr	$52.50		$44.00