From: [email-masked]
Cc: [email-masked], [email-masked], [email-masked]
Date: Wed, 9 Feb 2000 02:49:00 -0800 (PST)

Dear David

Thank you for your email.  Enclosed is a copy of the latest set of our 
General Terms and Conditions.  Following are the comments on the points which 
you raised:

1. Calculation Period.  We have used the term "Calculation Period" as that is 
a term which is used in the Australian electricity market.  Although it is 
common practice for the "Calculation Period" to be defined in confirmations 
by reference to an attached schedule we have also included a definition in 
paragraph 2.1(h) of the attached General Terms and Conditions (Electricity 
Financial - Australia).

2. Notional Quantity per Contract Period.  In the electricity market in 
Australia it is standard practice to refer to the "Notional Quantity per 
Calculation Period" in megawatt hours.   Hence, for consistency we would 
prefer to use that term.  

We recognise under Section 4.3 of the 1993 Commodity Definitions the terms 
"Notional Quantity" and "Notional Quantity per Calculation Period" are 
interchangeable.

3. Index.  We prefer to use the current definition of the Index because it 
directly tracts the wording used to describe a spot price in Australian 
Addendum No. 13 to the ISDA Master Agreement which covers electricity 
transactions.  You will note for this addendum is incorporated into the GTCs 
pursuant to paragraph 2.1(g).

Enclosed are the latest versions of the long form product definitions for 
swaps.  They cover three load shapes being peak, off peak and flat.

Regards

David Minns