RE: Ontario Market Opening ,
 This could be very dangerous.  

OPG controls all the megawatts.  

They could set the price high and we wouldn't have the ability to do anything about it.  If you could use British energy and get some deal done with OPG to hedge us maybe we would for a few months.  

 -----Original Message-----
From: 	Milnthorp, Rob  
Sent:	Tuesday, March 06, 2001 5:48 PM
To:	Lavorato, John
Subject:	Ontario Market Opening

John, it appears that the government is looking for some assurances that prices will not spike this winter and/or they are short MW's  if they open the market November 1st. What are your thoughts on Enron underwriting some type of insurance for the government for the months of Nov, Dec, Jan - ie. possibly writing a call option for 2000 MW at some price that doesnt alarm the govt. 

I could approach OPG this week when I'm in Toronto and feel them out on the two companies finding a solution to the government's concern.

This is also something we may want Lay to offer to the Premier when he is in Toronto.

Benefits would be:

The government may feel obigated to go forward if they have paid a premium for the call starting nov 1(ie binding/firm contract)
We could potentially book a significant origination amount
We would work with OPG vs against - good for overall relationship
Solidifies our relationship with the Ontario Government (ie providing solutions to their problems)
rob.milnthorp@enron.com