Project Stanley - Alberta Market Surveillance

The release of the Market Surveillance Administrator's "status report" on
the Alberta electricity market has been delayed until tomorrow morning. I
spoke to the Chairman of the Power Pool, Lorry Wilson, today about the Market
Surveillance Administrator's report and he advised me:

i) the Report was not prompted by one or more MSA investigations;
ii) the Report is silent on the trading activities of any specific market
participant;
iii) it will contain 10 recommendations focused on "how to improve the
marketplace" and changes in rules/processes currently followed by the Power
Pool, the Transmission Administrator, the Market Surveillance Administrator,
and the Alberta Department of Resource Development.
iv) the Report was prompted by concerns expressed by stakeholders that prices
in the Alberta electricity market do not represent prices that are the
product of a fair and efficient market;
v) this Report will be the first in a new reporting process that will see
the MSA release on a quarterly, and perhaps monthly, basis going forward. It
is more comprehensive than the future reports will be. The Power Pool's
preference was to start this process in January 2001 but given iii) they felt
they had to release something sooner.

Lorry is aware of Project Stanley. His comments to me during our discussion
appeared to be intended to assure me that I need not be overly concerned with
the report. In fact, he indicated that he looks forward to discussing the
contents and receiving Enron's input on the observations and recommendations
in it.

I will forward the report to you once it is released tomorrow.

Regards,

Rob