December 20, 2002

Genesee Strip Contracts offered to marketplace

The Balancing Pool has commenced its sale to the electricity marketplace of three-year power contracts related to Genesee Power Purchase Arrangement (PPA).

The Genesee sale process will be the third and final stage of the Market Achievement Plan II (MAP II). The MAP II process and the related derivative contracts are designed to enable the Balancing Pool to transfer control of 2,146 MW of generating capacity it holds under Power Purchase Arrangements (PPAs) to electricity marketers.

In 2002, the MAP II process has seen the Balancing Pool transfer 1,227 MW of generating capacity to electricity marketers. The sale of plant-based "Strip Contracts" developed from the Genesee PPA will see a further 762 MW of generating capacity controlled by the Balancing Pool transferred to electricity marketers.

There are eight Strip Contracts associated with the Genesee PPA:

• Six for 100 MW of energy capacity;
  
• and Two for 81 MW of capacity that can be sold as energy or ancillary services.

The Balancing Pool will initially be offering four Strip Contracts.

The combination of Strip Contracts sold will be contingent on the bids received:

• Up to two contracts for 81 MW of capacity that can be sold as energy or ancillary services will be offered.
  
• At least two contracts for 100 MW of energy capacity will also be offered.

The Balancing Pool reserves the right, in its sole discretion to increase or decrease the size of the total offering of ancillary service Strip Contracts and energy only Strip Contracts in order to optimize sale proceeds.

Final binding bids are on March 7, 2003.

Macquarie North America Ltd. is managing the marketing and sale process. Interested parties can contact either Bruce Roberts, Director Planning and Development, Balancing Pool, (403) 705 8519 or Bruce Hogg, Associate Director, Macquarie North America Ltd., (416) 594 5157 to obtain further information.