Message-ID: <17087244.1075846388620.JavaMail.evans@thyme> Date: Tue, 28 Nov 2000 23:28:00 -0800 (PST) From: steven.kean@enron.com To: david.delainey@enron.com, john.lavorato@enron.com Subject: Alberta Pool Rule Changes Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Steven J Kean X-To: David W Delainey, John J Lavorato X-cc: X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Sent X-Origin: KEAN-S X-FileName: skean.nsf ----- Forwarded by Steven J Kean/NA/Enron on 11/29/2000 07:27 AM ----- Robert Hemstock@ECT 11/28/2000 08:00 PM To: Aleck Dadson/TOR/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Steven J Kean/NA/Enron@Enron cc: Subject: Alberta Pool Rule Changes Unfortunately, today in an unprecedented move the Alberta Government over-ruled the Power Pool on its decision yesterday not to amend the Power Pool Rules and exclude importers from setting pool price. The Minister signed a regulation under the Electric Utilities Act that excludes imports from influencing the determination of the pool price. The Power Pool has been tasked to work out the mechanics of implementing the regulation. Larry Charach advised that this move was made by the politicians in the face of advice not to do it from Larry. Apparently the Premier met with representatives of Alberta farmers yesterday and also learned of what the Government considers to be excessive pricing being offered by Enmax (the City of Calgary owned retailer) that included: 1 Year (on-peak) $190/Mwh Cdn, 1 Year (all-hours) $137/Mwh Cdn. Peter Keohane and I have a meeting tomorrow morning with lawyers from Blakes. The present thinking is that we need to get legal advice on whether we need to send a letter to the Government indicating that Enron believes this action to be contrary to the provisions of the EUA prior to our participating in the MAP Auction on Monday and Tuesday. The fear is that our conduct of pursuing new commercial opportunities in this market may somehow estop us from later arguing the new regulation is ultra vires the EUA. Notwithstanding the advice we get on this point, there is agreement here (Milnthorp and Keohane) that if we do send a letter it must not include a paragraph threatening to sue the Alberta Government. Regards, Rob