1. EEI Master Power Purchase and Sale Agreement Melissa Lauderdale Director, Industry Legal Affairs mlauderdale@eei.org

2. History Published in April 25, 2000. Published in April 25, 2000. Variety of market participants including public power entities were involved in the drafting process. Variety of market participants including public power entities were involved in the drafting process. Drafters knew that they could be either a buyer or a seller under this bilateral contract, so they had an interest in developing a fair contract that favored neither buyers or sellers. Drafters knew that they could be either a buyer or a seller under this bilateral contract, so they had an interest in developing a fair contract that favored neither buyers or sellers. Initially intended to be an electricity trading contract, but structure is flexible enough that it can be used for long-term purchase agreements. Initially intended to be an electricity trading contract, but structure is flexible enough that it can be used for long-term purchase agreements.

3. Today The EEI is one of the three main contracts for trading wholesale power, along with the ISDA (with Power Annex) and WSPP. The EEI is one of the three main contracts for trading wholesale power, along with the ISDA (with Power Annex) and WSPP. Optional provisions have been published to address changes in market design, new products, and new legal issues. Optional provisions have been published to address changes in market design, new products, and new legal issues. Contract is available to anyone at no cost at www.eei.org. Contract is available to anyone at no cost at www.eei.org.

4. EEI Contract Drafting Committee Mission Mission Drafting Contract Language Drafting Contract Language Education Education Training Sessions at least annually Training Sessions at least annually Cover the basics of using the EEI and review current industry issues including contracting with public power entities. Cover the basics of using the EEI and review current industry issues including contracting with public power entities. Next Training Session is November 14-15, 2006 in Houston, Texas Next Training Session is November 14-15, 2006 in Houston, Texas

5. Process for Approving New Optional Provisions EEI Contract Drafting Committee selects issues based on their experience and input from industry. EEI Contract Drafting Committee selects issues based on their experience and input from industry. Subcommittee drafts language for approval by Drafting Committee. Subcommittee drafts language for approval by Drafting Committee. EEI Contract Working Group approves new optional provisions prior to publication. EEI Contract Working Group approves new optional provisions prior to publication. Master Agreement email list is used to announce publication of new optional provisions and training opportunities. Master Agreement email list is used to announce publication of new optional provisions and training opportunities.