Sheerness and Clover Bar Capacity Sold

Four 100 MW Strip Contracts related to the Sheerness Power Purchase Arrangement (PPA) have been sold in the second phase of the Market Achievement Plan II (MAP II) completed September 30, 2002.

UBS Warburg Energy (Canada) Ltd. and Constellation Power Source, Inc. have each purchased a 100 MW Strip Contract and El Paso Merchant Energy L.P, has purchased two 100 MW Strip Contracts. The contracts will transfer control (offer strategy and output) for 400 MW of Sheerness's PPA capacity effective October 1, 2002.

In addition, Constellation Power Source, Inc. also purchased a 157 MW Unit Contract related to the Clover Bar PPA, which will transfer control (offer strategy and output) of Clover Bar Unit 1 effective October 1, 2002.

"This outcome continues to demonstrate our commitment to transferring control of the Balancing Pool-held PPA capacity to market participants. We are particularly pleased with the new entrants we have attracted to Alberta" said John Tapics the Balancing Pool's CEO.

"While we would have liked to have sold a larger number of Strip Contracts, we attribute a large part of the outcome to the challenging circumstances currently facing the industry," said Bruce Roberts the Balancing Pool's Director of Planning and Development. "Despite the circumstances facing the industry, consultation with interested parties confirms that there is strong interest in the MAP II products. In response to feedback from many parties involved in the process, the Balancing Pool will extend the second stage of the sale until mid November 2002 to provide additional time for all interested parties to participate in the Sheerness sale."

The Balancing Pool is currently soliciting Expressions of Interest to acquire the remaining Sheerness Strip Contracts:

• Two (2) contracts for 100 MW of energy capacity ("Energy Only Strip Contracts"); and
  
• Two (2) contracts for 78 MW of capacity that can be sold as energy or ancillary services ("A/S Strip Contracts").

Each unit of the Sheerness Generating Station is capable of providing 78 MW of regulating, supplemental and spinning ancillary services ("A/S"). A/S Strip Contracts will carry the rights to sell the energy and the option to sell the ancillary services of a specific Sheerness Unit.

The Sheerness Strip Contracts, which will be effective December 1st, 2002, will be for a thirty-seven (37) month term to allow purchasers to market energy for the entire 2005 calendar year.

Further information on the MAP II process is available on the Balancing Pool's website.

For more information on MAP II, please contact:
Bruce Roberts
Director of Planning and Development, Balancing Pool 403-705-8519

On sales process, and bidder participation in MAP II, please contact:
Bruce HoggVice
President and Director, Macquarie North America Ltd. 416-594-5157