Notice to Members

Notice No. 406
07/31/2006

Outright (Scan) Margin Rates Change for Financially Settled Electricity Contracts

Effective Date: Tuesday, August 1, 2006 (close of business)

Futures Contract:

Dow Jones North Path – 15 Index (DN), Dow Jones Mid–Columbia Index (DO), Dow Jones Palo Verde Index (DP), Dow Jones South Path – 15 Index (DV), Cinergy Hub LMP – Peak (EM), Cinergy Hub LMP – Off Peak (EJ), Michigan Hub LMP – On Peak (HM), Michigan Hub LMP – Off Peak (HJ), PJM Western Hub LMP On Peak Monthly (JM), PJM Western Hub LMP Off Peak Monthly (JP), NYISO Zone A LBMP – Peak (KA), NYISO Zone A LBMP – Off Peak (KB), NYISO Zone G LBMP – Peak (KG), NYISO Zone G LBMP – Off Peak (KH), NYISO Zone J LBMP – Off Peak (KK), New England Internal Hub – Peak (NI), New England Internal Hub – Off Peak (KI), Northern Illinois Hub – Peak (UM), AEP-Dayton Hub – Peak (VM), and MISO Illinois LMP – Peak (OM)

Contract Months: All Months

NNYMEX Division Outright (Scan) Margins on Dow Jones NP15 Electricity Prices Index Swap (DN)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$18,000	$12,000	$19,800	$13,200	$24,300	$16,200
Tier 2: 2nd – 6th Nearby	$16,000	$12,000	$17,600	$13,200	$21,600	$16,200
Tier 3: 7th – 11th Nearby	$10,500	$10,500	$11,550	$11,550	$14,175	$14,175
Tier 4: Greater than 11th Nearby	$11,000	$10,500	$12,100	$11,550	$14,850	$14,175

NYMEX Division Outright (Scan) Margins on Dow Jones Mid–Columbia Electricity Prices Index Swap (DO)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$18,000	$10,500	$19,800	$11,550	$24,300	$14,175
Tier 2: 2nd – 6th Nearby	$16,000	$12,000	$17,600	$13,200	$21,600	$16,200
Tier 3: 7th – 11th Nearby	$10,500	$10,500	$11,550	$11,550	$14,175	$14,175
Tier 4: Greater than 11th Nearby	$11,000	$5,250	$12,100	$5,775	$14,850	$7,088

NYMEX Division Outright (Scan) Margins on Dow Jones Palo Verde Electricity Prices Index Swap (DP)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$18,000	$10,500	$19,800	$11,550	$24,300	$14,175
Tier 2: 2nd – 6th Nearby	$16,000	$12,000	$17,600	$13,200	$21,600	$16,200
Tier 3: 7th – 11th Nearby	$10,500	$10,500	$11,550	$11,550	$14,175	$14,175
Tier 4: Greater than 11th Nearby	$11,000	$10,500	$12,100	$11,550	$14,850	$14,175

NYMEX Division Outright (Scan) Margins on Dow Jones SP15 Electricity Prices Index Swap (DV)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$18,000	$10,500	$19,800	$11,550	$24,300	$14,175
Tier 2: 2nd – 6th Nearby	$16,000	$12,000	$17,600	$13,200	$21,600	$16,200
Tier 3: 7th – 11th Nearby	$10,500	$10,500	$11,550	$11,550	$14,175	$14,175
Tier 4: Greater than 11th Nearby	$11,000	$10,500	$12,100	$11,550	$14,850	$14,175

NYMEX Division Outright (Scan) Margins on Cinergy Hub LMP – Peak (EM)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$8,500	$4,500	$9,350	$4,950	$11,475	$6,075
Tier 2: 2nd – 6th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100
Tier 3: 7th – 11th Nearby	$4,000	$4,000	$4,400	$4,400	$5,400	$5,400
Tier 4: Greater than 11th Nearby	$3,000	$3,000	$3,300	$3,300	$4,050	$4,050

NYMEX Division Outright (Scan) Margins on Cinergy Hub LMP – Off Peak (EJ)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$4,500	$3,000	$4,950	$3,300	$6,075	$4,050
Tier 2: 2nd – 6th Nearby	$4,000	$4,000	$4,400	$4,400	$5,400	$5,400
Tier 3: 7th – 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100
Tier 4: Greater than 11th Nearby	$3,000	$3,000	$3,300	$3,300	$4,050	$4,050

NYMEX Division Outright (Scan) Margins Michigan Hub LMP – On Peak (HM)

Contract	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
HM	$4,000	$3,000	$4,400	$3,300	$5,400	$4,050

NYMEX Division Outright (Scan) Margins on Michigan Hub LMP – Off Peak (HJ)

Contract	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
HJ	$4,500	$4,000	$4,950	$4,400	$6,075	$5,400

NYMEX Division Outright (Scan) Margins on PJM Western Hub LMP On Peak Monthly (JM)

Contract	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
JM (Tier 1: 1st Nearby)	$15,000	$9,000	$16,500	$9,900	$20,250	$12,150
JM (Tier 2: 2nd – 4th Nearby)	$10,000	$7,500	$11,000	$8,250	$13,500	$10,125
JM (Tier 3: 5th – 6th Nearby)	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100
JM (Tier 4: 7th – 8th Nearby)	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100
JM (Tier 5: 9th – 10th Nearby)	$5,000	$5,000	$5,500	$5,500	$6,750	$6,750
JM (Tier 6: 11th – 12th Nearby)	$5,000	$5,000	$5,500	$5,500	$6,750	$6,750
JM (Tier 7: 13th – 16th Nearby)	$3,500	$3,500	$3,850	$3,850	$4,725	$4,725
JM (Tier 8: Greater than 16th Nearby)	$3,000	$3,000	$3,300	$3,300	$4,050	$4,050

NYMEX Division Outright (Scan) Margins on PJM Western Hub LMP Off Peak Monthly (JP)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$5,500	$4,000	$6,050	$4,400	$7,425	$5,400
Tier 2: 2nd – 6th Nearby	$9,000	$9,000	$9,900	$9,900	$12,150	$12,150
Tier 3: 7th – 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100
Tier 4: Greater than 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100

NYMEX Division Outright (Scan) Margins on NYISO Zone A – Peak (KA)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$4,500	$2,500	$4,950	$2,750	$6,075	$3,375
Tier 2: 2nd – 6th Nearby	$4,500	$4,500	$4,950	$4,950	$6,075	$6,075
Tier 3: 7th – 11th Nearby	$4,500	$4,500	$4,950	$4,950	$6,075	$6,075
Tier 4: Greater than 11th Nearby	$2,500	$2,500	$2,750	$2,750	$3,375	$3,375

NYMEX Division Outright (Scan) Margins on NYISO Zone A – Off Peak (KB)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$5,500	$4,000	$6,050	$4,400	$7,425	$5,400
Tier 2: 2nd – 6th Nearby	$9,000	$9,000	$9,900	$9,900	$12,150	$12,150
Tier 3: 7th – 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100
Tier 4: Greater than 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100

NYMEX Division Outright (Scan) Margins on NYISO Zone G – Peak (KG)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$4,500	$2,500	$4,950	$2,750	$6,075	$3,375
Tier 2: 2nd – 6th Nearby	$4,500	$4,500	$4,950	$4,950	$6,075	$6,075
Tier 3: 7th – 11th Nearby	$4,500	$4,500	$4,950	$4,950	$6,075	$6,075
Tier 4: Greater than 11th Nearby	$2,500	$2,500	$2,750	$2,750	$3,375	$3,375

NYMEX Division Outright (Scan) Margins on NYISO Zone G – Off Peak (KH)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$5,000	$4,500	$5,500	$4,950	$6,750	$6,075
Tier 2: 2nd – 6th Nearby	$9,000	$9,000	$9,900	$9,900	$12,150	$12,150
Tier 3: 7th – 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100
Tier 4: Greater than 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100

NYMEX Division Outright (Scan) Margins on NYISO Zone J – Off Peak (KK)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$6,000	$4,500	$6,600	$4,950	$8,100	$6,075
Tier 2: 2nd – 6th Nearby	$9,000	$9,000	$9,900	$9,900	$12,150	$12,150
Tier 3: 7th – 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100
Tier 4: Greater than 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100

NYMEX Division Outright (Scan) Margins on ISO New England Internal Hub – Peak (NI)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$10,000	$6,000	$11,000	$6,600	$13,500	$8,100
Tier 2: 2nd – 6th Nearby	$7,000	$6,000	$7,700	$6,600	$9,450	$8,100
Tier 3: 7th – 11th Nearby	$5,500	$5,500	$6,050	$6,050	$7,425	$7,425
Tier 4: Greater than 11th Nearby	$5,000	$5,000	$5,500	$5,500	$6,750	$6,750

NYMEX Division Outright (Scan) Margins on ISO New England Internal Hub – Off Peak (KI)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$7,000	$4,500	$7,700	$4,950	$9,450	$6,075
Tier 2: 2nd – 6th Nearby	$9,000	$9,000	$9,900	$9,900	$12,150	$12,150
Tier 3: 7th – 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100
Tier 4: Greater than 11th Nearby	$6,000	$6,000	$6,600	$6,600	$8,100	$8,100

NYMEX Division Outright (Scan) Margins on Northern Illinois Hub – Peak (UM)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$10,000	$6,000	$11,000	$6,600	$13,500	$8,100
Tier 2: 2nd – 6th Nearby	$10,000	$10,000	$11,000	$11,000	$13,500	$13,500
Tier 3: 7th – 11th Nearby	$5,000	$5,000	$5,500	$5,500	$6,750	$6,750
Tier 4: Greater than 11th Nearby	$5,500	$5,500	$6,050	$6,050	$7,425	$7,425

NYMEX Division Outright (Scan) Margins on AEP-Dayton Hub – Peak (VM)

Tiers	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
Tier 1: 1st Nearby	$9,000	$7,000	$9,900	$7,700	$12,150	$9,450
Tier 2: 2nd – 6th Nearby	$10,000	$10,000	$11,000	$11,000	$13,500	$13,500
Tier 3: 7th – 11th Nearby	$5,500	$5,500	$6,050	$6,050	$7,425	$7,425
Tier 4: Greater than 11th Nearby	$3,500	$3,500	$3,850	$3,850	$4,725	$4,725

NYMEX Division Outright (Scan) Margins on MISO Illinois LMP – Peak (OM)

Contract	Clearing Member / Maintenance Margin		Member Customer Initial Margin		Non–Member Customer Initial Margin
	*New*	Old	*New*	Old	*New*	Old
OM	$5,500	$4,000	$6,050	$4,400	$7,425	$5,400

This notice supersedes all previous notices regarding margin rates for the Electricity Futures contracts listed above.

Should you have any questions or require any further information, please contact exchangeinfo@nymex.com