Thank you to everyone that attended the meeting on energy product definition
on Tuesday, May 7th at Tractebel's offices in Houston.  The objective of
this meeting was to define the initially offered energy product that will be
available for electronic matching transactions on the APX Trading Exchange
that will open June 1st in the ERCOT market. This objective was realized.

The first energy product that will be offered on the APX Trading Exchange is
defined as follows:

FIRM ENERGY/HOURLY (FEH)

* Supply or pay
* He who moves the power pays
* Marked one of four ways when posted:
* North Zone
* West Zone
* South Zone
* Any Zone
* Traded hourly
* Trading period extends out 72 hours from the end of the Adjustment
Period
* Trading period closes 15 minutes before the Operating Period

At the request of meeting participants, I am also including a definition for
a Firm Energy/Daily Product.  This definition might be considered as a
market standard definition for daily energy bilateral trading as of June
1st.  This product will not be offered on the APX Trading Exchange on June
1st but, with consensus, could be used for daily energy transactions between
market participants.

FIRM ENERGY/DAILY (FED)

* Supply or pay
* Seller's choice
* Sink pays congestion

I'm also attaching the Powerpoint slides that were used to kick-off the
brainstorming session during the meeting.  If I've missed any crucial
information, or any decisions that were made during the meeting, please
refresh my memory.  If you have any additional comments or feedback, please
contact me.

Thank you again for taking the time to work as a market team in developing a
strategy to create a vibrant and liquid market.  If you do not already have
desktop access to APX trading technology, please let me know and we will
provide you with additional information.

Wendy Brown
Manager, Market Development
Automated Power Exchange
3800 Buffalo Speedway, Suite 150
Houston, TX  77098
713-850-9515  office
832-444-8402  cellular
www.apx.com

 <<trader meeting.ppt>>



 - trader meeting.ppt