EnergyClear Corp. announces new membership category for firms facing credit rating downgrades

HOUSTON, Texas, Nov. 21, 2002 — EnergyClear Corp., an independent U.S. energy clearinghouse, has created a new category of membership for merchant energy trading companies facing credit rating downgrades.

Under this new membership category, these energy trading companies will have access to EnergyClear Corporation’s centralized clearance and settlement of over-the-counter energy transactions even though unrated or lower-rated companies would not otherwise typically qualify for clearinghouse membership.

EnergyClear has announced that it will make available Virtual Markets Assurance Corporation’s (VMAC) system of financial guarantees, provided by Financial Security Assurance Ltd. (FSA), covering both VaR and Mark-to-Market Amounts to members beginning in 1Q03. It is intended that such a program would provide significantly increased coverage for energy trading risks not fully protected by the traditional clearinghouse structure.

EnergyClear Corporation receives operations and technology support from EnergyClear Operations Company LLC, an independent, for-profit, services company. EnergyClear Corporation operates on a not-for-profit basis and charges transaction fees to its members in order to pay the costs associated with the services provided by EnergyClear Operations Company.

The support provided by EnergyClear Operations Company includes the operation of a real-time collateral check function and the provision of other risk management technologies to EnergyClear Corporation for the benefit of EnergyClear Corporation’s members.

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