July 26, 2002

Two Clover Bar Unit Contracts Sold

Two 157-megawatt (MW) unit-specific power contracts related to the Clover Bar Power Purchase Arrangement (PPA) were sold in the first phase of the Market Achievement Plan II (MAP II) completed July 25, 2002.

El Paso Merchant Energy Limited Partnership and Duke Energy Marketing Limited Partnership have each purchased a unit contract. The contracts will transfer control (offer strategy, dispatch and output) for the two Clover Bar units effective August 1, 2002.

"These contracts are the first step in the MAP II sale process and demonstrate our commitment to place control of the Balancing Pool-held PPA capacity into market participants' hands as soon as practicable" said John Tapics the Balancing Pool's CEO. "Given the recent challenges facing the industry, we are pleased with the outcome of this initial phase of the process and the transfer of control of this capacity to new market entrants".

Next phases of the MAP II process will involve the sale of physical strip contracts developed from the Sheerness and Genesee PPA-related contracts:

• Sheerness-will commence immediately with closing bids due by mid-September; with contracts expected to be effective October 1; and
  
• Genesee-will commence in early September with closing bids mid-November; with contracts expected to be effective January 1, 2003.

The intent will be to remarket two remaining unit-specific Clover Bar contracts as part of the next phase of MAP II sale process.

"Early indications are that there will be a strong interest in the capacity from Sheerness and Genesee and we are optimistic that the next phases of MAP II will be very successful" said Mr. Tapics.

Further information on the next phase of the MAP II process will be posted on the Balancing Pool's website.

 

For more information on MAP II, please contact:
Bruce Roberts,
Commercial Manager, Balancing Pool,
403-705-8519

 

On sales process, and bidder participation in MAP II:
Bruce Hogg,
Macquarie North America Ltd.,
416-594-5157

 

Ernst & Young Letter of Reserve Price Compliance - Cloverbar