SUBSCRIBER NOTE: Updates to Platts spark, dark spreads

Following a period of consultation, effective April 1, 2014, Platts will be making the following changes to its clean spark spread calculations: -- Revising the emissions intensity factor to 0.053942 tCO2e/MMBtu in line with the most recent UK government conversion factors -- Applying an energy conversion multiplier of 3.412141 MMBtu to MWh as per industry standard -- The full revised formula will be: Platts spark spread (EUA emissions price * carbon intensity factor 0.053942 * energy conversion 3.412141 / fuel efficiency) Alongside these changes, Platts will now include the heating value for spark and clean spark spreads as standard in its European Electricity Methodology and Specifications Guide. The applicable heating value for all existing and new spark and clean spark spreads is High Heating Value (HHV), and a HHV basis is reflected in the emissions intensity factor. Platts currently publishes 50% and 60% efficient spark and clean spark spreads at HHV on European Power Alert, in European Power Daily and in Platts Market Data. Effective April 1, Platts will no longer include the 60% efficient spark and clean spark spreads in European Power Daily but will continue to publish these spreads on European Power Alert and in Platts Market Data. Platts will also be increasing its generation spread indicators with the following additions, effective April 1, 2014: -- New spark and clean spark spreads at 45% efficiency that capture the lower band of gas plant fuel efficiency. -- New UK clean spark and clean dark spreads that incorporate the cost of the government's Carbon Price Support (CPS) levy at the confirmed rates of GBP9.55/mt from April 1, 2014 to March 31, 2015 and GBP18.08/mt from April 1 2015 to March 31 2016. Plant efficiency rates will be 45% HHV and 50% HHV for the UK CPS clean spark spreads and 35% for the UK CPS clean dark spreads. -- The formula for the UK CPS clean spark spread is: Platts UK spark spread in GBP/MWh - (EUA emissions price in euro/mt converted to GBP + CPS levy in GBP/mt * emissions intensity factor 0.053942 * energy conversion 3.412141 / fuel efficiency). Eur/MWh conversions will be available. -- The formula for the UK CPS dark spread is: Platts UK dark spread in GBP/MWh at 35% fuel efficiency - (EUA emissions price in euro/mt converted to GBP + CPS levy in GBP/mt * emissions intensity factor 0.973). Eur/MWh and $/MWh conversions will be available. As previously announced in Platts Coal Trader International, we will be making formula changes to our dark and clean dark spreads, also effective April 1, revising the energy conversion factor to 6.978 and the emissions intensity factor to 0.973 based on an industry standard carbon dioxide conversion factor of 0.34056 divided by 0.35 for a coal-fired plant operating at 35% efficiency.