Project Stanley - TransAlta Transmission Coalition

"Privileged and Confidential"

There appears to be consensus among the Project Stanley team around a
decision that Enron Canada will decline TransAlta's invitation to join it and
other Alberta electricity marketers in a coalition whose objective will be to
pursue some form of action to attempt to prohibit B.C. Hydro Power Supply and
Powerex from continuing their alleged abuse of the Network Economy provisions
in the B.C. Hydro Wholesale Transmission Tariff. This decision is acceptable
to the Enron Canada and ENA commercial groups (Rob Milnthorp and Tim
Belden).

TransAlta will be advised tomorrow that Enron Canada is not prepared to
consider participating in the coalition while the TransAlta legal action
against Enron Canada is outstanding. Enron will do its best to monitor the
activities of the coalition through our contacts at those companies that
choose to participate and may, of course, intervene in any proceeding in
either the U.S. or Canada that the coalition is able to initiate in pursuit
of its objective.

Regards,

Rob