SUBSCRIBER NOTE: Methodology change for M2MS Power

Platts is changing its methodology effective January 2, 2014, for M2MS Power North America (M2MS Power). Under the current methodology, Platts editors produce daily Market on Close assessments of forward power markets known as Platts-ICE Forward Curve Electricity (PFC Electricity). To create the assessments, editors use ICE activity data, broker quotes, trade data reported by market participants, and market knowledge of pricing fundamentals such as locational spreads and heat rates. The PFC Electricity assessments are used as inputs by the Platts quantitative team to derive the M2MS Power forward curves. Under the new methodology, PFC Electricity will no longer be an input to the M2MS Power curves. Rather, M2MS Power curves will be produced by the Platts quantitative team using ICE preliminary settlement data, ICE activity data, broker quotes, and market knowledge of pricing fundamentals such as locational spreads and heat rates. While the methodology will change, subscribers will continue to receive the same product in the same format as they do now. M2MS Power will look identical. There are no technology-related changes or delivery format changes. For questions, please contract Mark Callahan at mark.callahan@platts.com or at 713-658-3211.