June 3, 2003

Organizational Update

Dear Stakeholder,

As you may be aware, the new Electric Utilities Act has been passed by the legislature of the Government of Alberta and was proclaimed in force effective June 1, 2003.

As part of the new Act, the "Balancing Pool" has been established as an independent corporation governed by its own board. As such, the Balancing Pool will no longer be associated with the Power Pool of Alberta. Substantially all of the Power Pool's functions except for the Balancing Pool and market surveillance functions, have been merged with the transmission administrator functions to form another new independent corporation called the "Independent System Operator".

Notwithstanding the foregoing legislative and structural changes, there will be no changes to the Balancing Pool's personnel, location, telephone numbers or other important day-to-day matters. As well, pursuant to the new Act, current business arrangements of the Balancing Pool and our ongoing business relationships will be unaffected by this change.

I hope that this information has been helpful to you. Also, I invite you to contact me (403-538 3443), or my colleagues with any questions you may have.

Yours truly,

Gary E. ReynoldsActing Balancing Pool Administrator & CFO