From: [email-masked]
To: [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked]
Date: Fri, 26 Oct 2001 11:09:47 -0700 (PDT)

Per our conversation, BGE is implementing a fee (eff. 7/1/02) referenced in the BGE Electricity Supplier Manual (pg. 32) , as follows:

	"Charges for Coordination Services provided under this Tariff and Supplier Coordination Agreement"

The fee will be invoiced to us monthly, and is distinguishable from the forecasting and scheduling services the desk provides, and for which .25 per MWh has been included in your deal costs.  BGE defines the Scheduling Coordinator as:

"An entity recognized the the PJM OI and qualified to act on behalf of the Electricity Supplier in taking such actions with PJM as are necessary in order for Electricity Supplier's obligations as defined in this Tariff to be met, including the submission of energy schedules to the PJM OI. and that either is (1) a member of the PJM interconnection, L.L.C., or (2) the PJM-approved agent for scheduling purposes, of one or more Electricity Suppliers that are members of the PJM Interconnection, L.L.C."

Per Schedule 1 in the same document, the fee will be:

	"$30/MW/month...Based on the average daily Electricity Supplier's MW peak load contribution for the month"

This calculates to approximately .063 per MWh based on an assumed 65% load factor (.041 at 100% load).

Although the BGE TC for the Index product (Page 1, PRICE, Bullet 2.) specifies that the customer will be responsible to pay or reimburse us for all "Special Utility Charges" as further defined in the Master Agreement, this is going to be a recurring, ongoing charge rather than a special charge.

We therefore believe that this charge is more appropriately a component of the EESI Energy Price as defined in the TC, and recommend that the definition be modified to include the BGE Coordination Services Charge as defined in the BGE Electricity Supplier Manual.  This charge would then be allocated to the customers based on total monthly load (as are several of the ISO charges).

Please let me know if you have any questions.

Thanks-
Michele