SUBSCRIBER NOTE: Updates to Platts spark, dark spreads

Effective April 1, 2014, Platts has made the following changes to its clean spark spread calculations: -- The emissions intensity factor has been revised to 0.053942 tCO2e/MMBtu in line with the most recent UK government conversion factors -- An energy conversion multiplier of 3.412141 MMBtu to MWh has been applied 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 now includes 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 no longer publishes 60% efficient spark and clean spark spreads in European Power Daily. Platts continues to publish these spreads on European Power Alert and in Platts Market Data. Platts has also increased 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; GBP18.08/mt from April 1, 2015 to March 31, 2016; and GBP18.00/mt from April 1, 2016 to March 31, 2017. Plant efficiency rates are 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 announced in Platts Coal Trader International, we have made 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 mtCO2/MWh 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.