FW: Luscar/USW update

-----Original Message-----
From: Richey, Cooper
Sent: Friday, October 26, 2001 9:56 AM
To: Heizenrader, Tim; Sarnowski, Julie
Subject: FW: Luscar/USW update

-----Original Message-----
From: Macphee, Mike
Sent: Friday, October 26, 2001 10:53 AM
To: Keohane, Peter; Crawford, Sharon; Zufferli, John; Greenizan, Bill; Richey, Cooper; Fichten, Murray; Davies, Derek
Subject: FW: Luscar/USW update

-----Original Message-----
From: Jim_Paton@transalta.com@ENRON
Sent: Friday, October 26, 2001 10:04 AM
To: Howie_Thomas@transalta.com; bbaker@enmax.com; kolsen@enmax.com; Macphee, Mike; Dupuy, Mark; robert_cooper@transcanada.com; candice_thiessen@transcanada.com; jimo@encoreenergy.com; clast@enmax.com; rhay@epcor.ca; gwen_wenstrom@transcanada.com; doug.heath@powerpool.ab.ca; bpinfo@powerpool.ab.ca
Cc: Tony_Smith@transalta.com; Garth_Wong@transalta.com; Jim_Balshaw@transalta.com
Subject: Luscar/USW update

There have been few developments since the start of the strike so it has
been a while since the last update. Below is the current status:

The Alberta Labour Relations Board (ALRB) has determined that pickets
on the plant gates as occurred during the first 3 days of the strike
and disrupted TransAlta operations are not allowed.
Luscar is fulfilling their responsibility to supply fuel to
TransAlta's Sundance and Keephills plants through the implementation
of their contingency plans.
Inventories used to supply the units when mine operations are slowed
remain at adequate levels.
The most significant impact to date has been to coal blending
operations. Suboptimum blending results in derates. Challenges in
this area are expected to continue for the duration of the strike and
likely several days thereafter.
Risks to plant and mine operations from the strike exist. Luscar and
TransAlta have plans in place to address these risks but there are no
guarantees that output will be maintained at current levels. It is
our objective to adapt operations to minimize the impact of these
events which are outside of our control and to meet our PPA
obligations as much of the time as possible.

We understand Luscar and the USW will be meeting later today.

Should the situation change as a result of the meeting or any other
consequential developments I will send another e-mail within a few hours,
including over the weekend.

Regards,
Jim