1. Practical Aspects Of Participating In The Ontario Power Markets CERT Conference Pat Concessi, Partner – Global Energy Markets May 31, 2005

2. 1 CERT Conference© Deloitte & Touche LLP and affiliated entities. Agenda Net Capacity Changes New Ontario Market Structure Physical Settlement Payments Market Entry Requirements

3. 2 CERT Conference© Deloitte & Touche LLP and affiliated entities. Net Capacity Additions 2005 -2009: -730 MW Coal Capacity Retirement (-6416 MW) 2007 Pickering A – Unit # 1 (515) RFP Wind Projects (10.8) Loblaws Demand Management (10) 2005 GTAA Power Project (90) RFP Wind Projects (24.8) 2006 Calpine/Mitsui Power Project (1005) St. Clair Power Project (570) RFP Wind Projects (38.5) 2007 2008 Pickering A – Unit # 2 or 3 (515) Niagara Tunnel Power Project (250) Bruce A – Unit #1,2 (1540) Pickering A – Unit 2 or 3 (515) RFP Renewables II (300) Small Hydro RFP (300) 2009 + 536 MW + 115 MW + 1614 MW + 2655 MW + 765 MW NOTE: Capacity values for Wind Projects reflect an assumed 10% capacity value. Capacity values for RFP Renewable II represent a 30% capacity value due to the uncertainty of the generation mix.

4. 3 CERT Conference© Deloitte & Touche LLP and affiliated entities. New Ontario Market Structure OPG Baseload Nuclear and Hydro Non-Utility Generators (NUGs) Other OPG Price Capped Generation Market-priced Generation & Wholesale Participants RFP’s (Clean Energy & Renewables) IESO Regulated Rate Contract Price Market Price OPA Fees OEFC Market + NRR Capped Rate Incentives (WPPI, etc) Variances OPA Variance Account Payment Flow Blended Price Global Adjustment Provincial Benefit Commercial & Industrial Customers Residential & Eligible Commercial Retailers & Wholesalers LDC’s Regulated Price Contract Market Price

5. 4 CERT Conference© Deloitte & Touche LLP and affiliated entities. Physical Settlement Payments Trade Day T T+10 BD T+14 BD T+20 BD Preliminary Settlement Statements Issued Notice of Disagreement Filing Deadline Final Settlement Statement T+35 BD IESO Payment Date for June 1- 30, 2005 June 1 June 15 June 21 June 29 July 21 NOTE: These are actual settlement dates for trade date June 1, and for month end June/05. Monthly payments from the IESO can be up to 14 business days after month end.

6. 5 CERT Conference© Deloitte & Touche LLP and affiliated entities. Market Entry Requirements Project Approval (Government) –Land Rights, Design, Municipal Zoning, Provincial EA, Federal EA Participant Authorization (IESO) –Various Licenses/Permits (OEB, GST, NEB) –Participation Agreements (Prudential, Emergency) Connection Assessment (IESO, Hydro One, LDC’s) –Feasibility Study, System Impact Assessment Facilities & Meter Registration (IESO, MSP, Hydro One, LDC’s) –Transmission Connection Agreements –Meter Service Provider –Dispatch Work Station & Frame Relays

7. 6 CERT Conference© Deloitte & Touche LLP and affiliated entities. Deloitte Contact Information Global Energy Markets practice –Leader in business advisory and transformation services across the energy value chain –Focus on commodity transacting, risk management and market operations –Deep understanding of Ontario and North American energy markets Financial Advisory Services practice: –Optimal project delivery mechanism (e.g. public private partnerships) –Business case preparation and analysis for optimal risk allocation –Project financing and capital structure optimization Tax practice: –Project and Tax structuring for maximum benefit –Scientific Research & Experimental Development tax credits –Maximizing tax and non-tax benefits and incentives –Cross border tax structuring. Pat Concessi Partner Global Energy Markets 416-601-6251 pconcessi@deloitte.ca Michael Badham Partner Financial Advisory Services 416-601-4664 mbadham@deloitte.ca Jay Pon Firm Director Tax 416-643-8982 jpon@deloitte.ca

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