NP/SP Hourly Financial Options ,
 The following are the basics on what I was proposing on hourly call/put options:

1.  Structure:
	a. Delivery Point: NP15 or SP15
	b. Strike Price: determined at time of purchase or sale
	c. Quantity:  one option equals 25 megawatt hours
	c. Premium:  one time cash outlay for right of option quote as dollars per megawatt hour
	d. Settlement Index:  Expost, determined under the expost tab on the cal iso web site as the 10 minute average zonal price for the hour in which the option is to be settled.
	e. Exercise deadline:  Must be exercised 2 hours and 10 minutes prior to the begininng of physical power flow for the hour in which option will be settled financially.
	f.  Duration of option:  Expires at 20:50 of the day in which the option was purchased/sold.

	*In most cases I can quote a premium in which I will be willing to settle the option financially OR physically.
	** Of course execution of a transaction is subject to the counterparty having the appropriate credit approval for the agreed upon financial and or physical deals.
jmoshier@utilicorp.com