Market Changes

Group,

We are starting to see some market changes as we transition into the winter=
months.

First:
With EPE we will start seeing a severe morning ramp. We will have to carefu=
lly manage the units to prevent "swinging" them and increasing the chance o=
f a unit outage. As the EPE loads plummet off-peak, we should consult the u=
nit commitment, and depending on market conditions look to take units off-l=
ine and/ or put units on manual and buy energy back. Recently we have sold =
energy from EPE at a loss rather than putting costly gas turbines on manual=
(Newman 1, 2 and 3), reducing them, and buying that energy less expensivel=
y in the market. Our relationship with EPE is at a critical stage, they hav=
e a new vice-president and will be hiring new management to lead their mark=
eting group. We would like to be a part of EPE's marketing effort going for=
ward, but need to continue to prove that our level of service cannot be mat=
ched either in-house or by other marketers. I look to each member of the gr=
oup to be a part of this effort and to work closely to run the EPE grid as =
efficiently as possible.

Second:
The morning ramp will soon be upon us in the Northwest. It will become very=
difficult to get energy in the Nortwest for HE 6 through HE 10. We should =
look for congestion possibly on the COI and the DC. Also, as lights and hea=
ters come on in the evening, there should be another jump in load at HE 18 =
through HE 20. Enron Calgary will also be looking for energy these hours. B=
e sure to take this load movement into consideration if you lock a price in=
with ECC.

Finally:
We will have a meeting on TUESDAY--November 6th at 4:30 in the afternoon--(=
the first Tuesday as usual) to discuss market changes, peformance reviews a=
nd the final two months of the year.

Please see me with any questions regarding the system.

Thank you.

Bill