1. March 23, 2009
Re: Default and Short Payment Status Update
To Whom It May Concern:
Below is a list of the companies that are currently in Default including the effective date
of the default.
Companies in Default as of March 23, 2009
NAME DATE OF DEFAULT
LEHMAN BROTHERS COMMODITY SERVICES, INC October 10, 2008
OLDE TOWNE ENERGY ASSOCIATES, LLC January 9, 2009
JJR POWER LLC January 20, 2009
TMERGE, LLC February 11, 2009
APEX ENERGY TRADING, LLC March 13, 2009
FLAT EARTH ENERGY, LLC March 13, 2009
ENERGY ENDEAVORS LLC March 13, 2009
HIGH SIERRA POWER MARKETING, LLC March 13, 2009
CORE ENERGY SERVICES, INC March 18, 2009
GLOBAL ENERGY INVESTMENTS GROUP, LLC March 18, 2009
THE AI FUNDS March 19, 2009
PEAK CAPITAL MANAGEMENT March 20, 2009
ALEA POWER LLC March 20, 2009
DJGW, LLC March 20, 2009
For these fourteen companies, the aggregate amount of billed and yet to be billed RSG
resettlement charges that are not covered by financial security is estimated to be $22.2
million. This estimate includes interest owed per the Tariff.
Companies that are not paying Invoices
As of March 19, 2009, four companies are failing to pay their invoices. These companies
are not in default under the tariff because their financial security has been sufficient to
cover their invoices. For these four companies, the aggregate amount of billed and yet to
be billed RSG resettlement charges that are not covered by financial security is estimated
to be $1.1 million.
Summary of Estimated RSG Charges
CATEGORY NUMBER RSG EXPOSURE
Companies in Default 14 $ 22,234,615.92
Companies not Paying Invoices 4 $ 1,084,883.10
Total 18 $ 23,319,499.02
2. Short Payment Amounts as of March 19, 2009
Pursuant to Module B, Section 7.6 of the Tariff, the Midwest ISO only distributes funds
to market participants that are net due funds to the extent it receives funds from market
participants that are net owed funds (see the attached “Exhibit A” for an example). The
weekly and cumulative amount of funds owed but not paid starting with invoices dated
January 13, 2009 (which were payable one week later) is detailed in the chart below.
This is the unpaid amount after utilizing available financial security.
SUMMARY OF SHORT PAID AMOUNTS
Invoice Date Short Pay Amount Market Activy
1/13/2009 $ 33,352.00 $ 584,380,203.00
1/20/2009 $ 23,913.00 $ 548,896,140.00
1/27/2009 $ 7,556.00 $ 622,352,574.00
2/3/2009 $ 50,971.00 $ 832,284,186.00
2/10/2009 $ 116,633.00 $ 601,973,612.00
2/17/2009 $ 92,444.00 $ 606,053,336.00
2/24/2009 $ 41,277.00 $ 687,283,090.00
3/3/2009 $ 13,354.00 $ 366,705,857.00
3/10/2009 $ 124,562.00 $ 470,956,584.00
Total $ 504,062.00 $ 5,320,885,582.00
Actual Amount Owed but Not Paid After Utilizing Available Financial Security
as of March 19, 2009
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$-
1/13/2009 1/20/2009 1/27/2009 2/3/2009 2/10/2009 2/17/2009 2/24/2009 3/3/2009 3/10/2009
Invoice Date
Also included in the table above is each week’s Market Activity for all market
participants. The Market Activity value shown includes the Market Activity of market
participants that are in default. Pursuant to Module B, Section 7.10, at the point in time
that the Midwest ISO declares an amount owed but not paid to be an Uncollectible
Obligation the Midwest ISO will proceed to uplift the amount of the Uncollectible
Obligation to all remaining market participants based on their pro rata share of the
Market Activity during the week the Uncollectible Obligation was incurred.
