Frontier Economics Memo - Alberta Pool Rule Changes

Attached is the memo that has been prepared for Enron by Frontier Economics
outlining Frontier's observations relating to why the proposed rule changes
are ill advised. I will provide this document to the 7 member committee of
industry stakeholders the Power Pool has assembled (Enmax, Atco, TransAlta,
Enron, SPPA, WattEx, and CalPX) to receive feedback on its proposed rule
changes. The first meeting of this committee is tomorrow afternoon. I will
also provide the memo to the Alberta Government.

As part of our action plan we are also in the process of working with Seabron
Adamson of Frontier Economics and my colleagues in the Government Affairs
Group to put together a document that outlines the negative and unforseen
impacts in other jurisdictions of significant changes in rules or market
design that have been made and that are similar to the changes proposed in
Alberta. This document will be provided to the Alberta Government officials
and the Power Pool at upcoming meetings that we are attempting to arrange.