Revision of H.R. Milner Offer Strategy

Effective Friday, April 25, 2003

April 22, 2003

The change in offer strategy arose from the successful completion of the MAP II sales process.

As of April 1, 2003, the Balancing Pool has successfully transferred control of almost 2,000 megawatts of capacity to market participants through its Market Achievement Plan II (MAP II). The MAP II sales have increased competition in the market and reduced the Balancing Pool's share of total market capacity.

Power Pool Council has approved the modification of the approach the Balancing Pool uses to offer H.R. Milner output into the market, which to date has been on a variable cost basis. Effective April 25, 2003, the offer strategy for H.R. Milner plant will no longer be restricted to variable cost, but will be offered into the Power Pool in a commercially reasonable manner. The change will provide more flexibility in the operation of the Balancing Pool's capacity and is consistent with how other market participants operate.

Stakeholders and the Market Surveillance Administrator provided input to Council's decision. In implementing this change in offer strategy, the Balancing Pool will act in a commercially reasonable and responsible manner.

If you have any questions or comments on this change, please contact Gary Reynolds, Acting Balancing Pool Administrator and Chief Financial Officer at (403) 538-3443.