Subject: RE: Alberta PPA
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked], [email-masked]
Date: Wed, 13 Sep 2000 11:25:00 -0700 (PDT)

It looks like they are now going to use AECO index rather than NYMEX.  See 
attached.
---------------------- Forwarded by Peter Keohane/CAL/ECT on 09/13/2000 06:20 
PM ---------------------------

Soma Ghosh
09/13/2000 06:02 PM
To: "Ellison, Mike" <[email-masked]>, "[email-masked]'" 
<[email-masked]>
cc: Brian Kerrigan/HOU/ECT@ECT, Catherine Clark/HOU/ECT@ECT, Peter 
Keohane/CAL/ECT@ECT, Cris Sherman/HOU/ECT@ECT, Jonathan McKay/CAL/ECT@ECT, 
John Griffith/Corp/Enron@Enron 
Subject: RE: Alberta PPA  

Hi Mike, 

Re. question of what index we will use, we are proposing AECO C/NIT 7A Dec 01 
contract. Having spoken with our trader in Calgary, this is a liquid contract 
traded OTC & one that RBC trades in & is very familiar with. AECO contracts 
are CAD settled therefore avoiding the currency issues we discussed. We will 
include the exact contractual wording for the reference index in our draft 
ISDA.

As far as volatility, our structuring guy is running some numbers which we 
will pass on ASAP. As we discussed. I think we are talking in a range of not 
more than 15-20% for 1yr forward vol, and will provide some supporting price 
analysis.

Just to confirm, the interest repayment will flow as monthly/quarterly 
payments from Enron Canada to BF Equity Capital,  embedded in the swap as a 
margin on the index price Enron Canada pays.

Please also confirm that BF Equity Capital is the contractual counterparty to 
the GPA, & not 'Financing SPV' as is shown on the most recent structure you 
sent us.

Speak to you soon,

Regards,

Soma