FYI
 -----Original Message-----
From: 	Dadson, Aleck  
Sent:	Wednesday, August 01, 2001 2:05 PM
To:	Lavorato, John; Milnthorp, Rob; Devries, Paul
Cc:	Tripp, Garrett
Subject:	Supply Proposal to Premier Harris

Attached is the revised letter and simplified term sheet for the proposed offer of 500 MW on peak power to Ontario. With respect to the letter, please note as follows: a) It is important for the letter to set out the full context in which the offer is made, because the letter will likely be considered and reviewed by the Premier's staff and by Ministry of Energy et al staff rather than by the Premier himself. Accordingly, I think that it is advisable that the letter make reference to the meetings and the discussions therein and that it be copied to the senior Ministry of Energy people. (Lisa Assaf can provide your assistant with the addresses for Wilson, Purchase and Hubert);  and b) The rationale for making the offer has changed because of the OEB's recent determination that 88 of the 92 distributors are not ready, because of systems development and implementation issues,  for a Fall 2001 opening but should be ready for an opening in early 2002 (March 1 or April 1). Accordingly, the letter presents the proposed arrangement as a way in which the government can overcome the uncertainty regarding the return of Pickering A  and commit to a firm date for market opening in early 2002.