Essential Power LLC (the project) has announced that due to natural gas supply constraints into the New England power market the heat rate call option hedges that were put into place to support its Newington power plant for 2013 through 2016 have been adversely affected. The project has offset the ineffective heat rate call option hedges with new hedges that neutralize the exposure at a cost of about $160 million. We are placing the 'BB' rating on Essential Power on CreditWatch with negative implications but expect Essential Power's sponsor, Industry Funds Management (IFM), to support project losses. We expect to resolve the CreditWatch listing as we receive details regarding the structure of IFM's expected support. At that time, we will
