SUBSCRIBER NOTE: Methodology change for PFC Electricity

Platts is changing its methodology, effective January 2, 2014, for the Platts-ICE Forward Curve Electricity (North America). Under the current methodology, Platts editors produce daily market-on-close assessments of North American forward power markets known as the Platts-ICE Forward Curve Electricity (PFC Electricity). To create the assessments, editors use IntercontinentalExchange (ICE) activity data, broker quotes, trade data reported by market participants, and market knowledge of pricing fundamentals such as basis relationships and heat rates. Under the new methodology, Platts editors will no longer produce these editorial assessments. PFC Electricity will be derived by the Platts quantitative team. Under the current methodology, 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. Rather, M2MS Power 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 basis relationships and heat rates. PFC Electricity will be produced from the M2MS Power forward curves. Platts is making these changes because forward power markets have matured and become significantly more transparent since PFC Power was launched in 2001. Forward market settlement data and price indications are now widely available. While the methodology will change, subscribers will continue to receive the same products in the same format as they do now, via Platts Market Data. PFC Electricity and the M2MS Power forward curves 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.