FYI - BE contract extended. 
----- Forwarded by Aleck Dadson/TOR/ECT on 05/15/2001 09:02 AM -----

	Paul Devries
	05/14/2001 06:04 PM
		 
		 To: Rob Milnthorp/CAL/ECT@ECT
		 cc: Jeff Borg/TOR/ECT@ECT, Jan Wilson/TOR/ECT@ECT, Chris 
Gaffney/TOR/ECT@ECT, Aleck Dadson/TOR/ECT@ECT, Peter Keohane/CAL/ECT@ECT
		 Subject: British Energy

Rob, after extended negotiations with British Energy, we have verbally 
settled on:

1.  Contract drop dead date extended to December 31, 2002
2.  Contract price of C$ 41.85/MWh.
3.  A number of small amendments to the contract that we (Chris and I) are OK 
with (Chris is preparing an Amending Agreement and memo for Peter Keohane to 
review tomorrow).

I am very happy with this as it still leaves a value of C$ 107 million (US$ 
71.3 million), and it extends the contract out 13 months from the current 
drop dead.  They were initially at C$45/MWh so we were able to squeeze them 
down a fair bit.  Realistically, there was a fair chance of not getting any 
of this power as they would only have had to give Falconbridge or Dofasco or 
any industrial a call and been able to fill this at $45/MWh in a heartbeat.  
Fortunately they still see value in having a contract with us for the future 
opportunities that may come up in the marketplace.   

We have left the discussion of the put swaptions from Bruce A to a later date.

Cheers, Paul D