Stacy:

It occurred to me that members of the North American Energy and Developing
Products Committee might be interested in participating in a discussion
about one of the changes to the Ontario Market Rules that is currently being
considered by the Board of Directors of the IMO (the Independent Electricity
Market Operator in Ontario).

The Ontario Market Rules have, to date, been designed such that generators
of electricity will receive a 5 minute price (EMP or energy market price)
from the IMO, and consumers of electricity receive an hourly price (the HOEP
or hourly Ontario energy price).  The HOEP was calculated as the weighted
average of the EMP for an hour.  For a variety of reasons, the IMO has now
decided to change the way that the HOEP is calculated, such that it will be
the straight average of the EMP's for the hour.  

Customers have already entered into swaps, fixing the price at which they
will purchase electricity, in which they pay a fixed price and receive the
HOEP in return.  Therefore, if the quantum of the HOEP is now different than
is was based under the formula in effect when the contract was entered into,
the economics of the deal have changed.

It's not clear at this time how material this change in calculation will be.
Will it make a $0.05 difference to the HOEP, or a $3.00 difference to the
HOEP?  In other words, is it a Material Change in Formula?

Let me know if you think this might be of interest to the members.

Meg



-----Original Message-----
From: TIMBERG Meg -LAW+CRP DEV 
Sent: Thursday, October 25, 2001 7:50 AM
To: 'Stacy Carey'; TIMBERG Meg -LAW+CRP DEV; 'McGilloway, Vangie';
Louise Guillemette; 'Margaret Grottenthaler'; 'Carla Urquhart'; 'Bowen,
Ken'; Emily Jelich; 'susan.heard@rbcds.com'
Cc: Mark Haedicke
Subject: RE: ISDA North American Energy and Developing Products
Committee Meet ing - November 2 - Canadian Issues 


Stacy:

If you decide that you'd like to have an update re that status of the new
Ontario electricity market, I'd be happy to do so.  It won't take more than
2-3 minutes, as nothings changed dramatically since July.  All parties are
proceeding on the assumption that the market will open in the Spring (a
specific date has not yet been established).    

If, however, anyone has any specific questions that they'd like to have
discussed, perhaps they can add them to the agenda in advance of the meeting
for general discussion.

Meg



-----Original Message-----
From: Stacy Carey [mailto:SCAREY@ISDA.ORG]
Sent: Wednesday, October 24, 2001 11:46 AM
To: 'meg.timberg@opg.com'; 'McGilloway, Vangie'; Louise Guillemette;
'Margaret Grottenthaler'; 'Carla Urquhart'; 'Bowen, Ken'; Emily Jelich;
'susan.heard@rbcds.com'
Cc: Mark Haedicke
Subject: ISDA North American Energy and Developing Products Committee
Meet ing - November 2 - Canadian Issues 


Hello All -- wanted to let you know that we have scheduled the next NA
Energy & Developing Products Committee meeting for Friday, November 2.
(Meeting details will be circulated to the entire Committee today but  I
have attached them for your information).

We are in the process of finalizing the agenda, which will largely focus on
documentation initiatives to address standardizing netting provisions across
energy commodities and to also address physical and financial trading.
However, I wanted to ask if there are any Canadian energy issues we should
include on the agenda.  Would you let me know your thoughts?  Meg gave an
update on the Ontario Electricity Market at the July 27 meeting -- is an
update in order for the Nov. 2 meeting?  Thank you. -- Stacy


 <<Meeting Details - Nov 2.doc>> 


Stacy Carey
Policy Director 
International Swaps and Derivatives Association
600 5th Avenue, 27th Floor
Rockefeller Center
New York, NY  10020
(212) 332-1202 ph
(212) 332-1212 fax
(917) 543-9622 cell
scarey@isda.org