Alberta Gov't News Release on Inquiry into Energy Pricing

---------------------- Forwarded by Eric Thode/Corp/Enron on 11/22/2000 02:02
PM ---------------------------

Enron North America Corp.

From: Robert Hemstock @ ECT 11/22/2000 01:58 PM

To: Richard B Sanders/HOU/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Aleck
Dadson/TOR/ECT@ECT, Mark Palmer/Corp/Enron@ENRON, Steven J
Kean/NA/Enron@Enron, Eric Thode/Corp/Enron@ENRON, TMcLaren@GPC.CA,
kpeterson@gpc.ca, TBurns@gpc.ca, Rob Milnthorp/CAL/ECT@ECT, Peter
Keohane/CAL/ECT@ECT
cc:

Subject: Alberta Gov't News Release on Inquiry into Energy Pricing

Tom Burns from GPC called to advise that his contacts with the Alberta Gov't
told him that Premier Klein and Justice Minister Hancock intended to put out
a news release between 1:15pm and 1:30 pm today indicating the Gov't has
decided to call a hearing/inquiry on energy pricing in Alberta. Tom does
not know what the form of this hearing/inquiry will be (i.e. an AEUB hearing
or an independent inquiry (judicial or otherwise)) or whether it will involve
natural gas and power or just power. Tom's sense was that the mandate of
the hearing/inquiry would be focused on providing policy makers with a clear
understanding of the factors that are producing high energy price levels in
Alberta and whether there are any policy steps that could/should be taken to
address the current price levels. He did not think the tone of the news
release would be that the Government of Alberta needs to put a stop to the
energy price gouging of consumers in Alberta.

A few minutes ago Tom Burns called me back to advise that Klein has now
decided to delay the release of the new release until at least tomorrow as
the Tory caucus has a half-day meeting tomorrow morning and the Premier wants
to discuss how the Gov't should approach this issue with members of his
caucus before he proceeds with the idea of a hearing/inquiry.

I have heard nothing from industry players so far about the DJ story except
the Chairman of the Independent Power Producers Society of Alberta circulated
the DJ story by email to the members of the IPPSA Board today with the
following comment: "It is too bad that the government has resorted to this
tactic. I guess they have a lot of pressure on them."

Regards,

Rob