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 carefully manage the units to prevent "swinging" them and increasing the chance of a unit outage. As the EPE loads plummet off-peak, we should consult the unit commitment, and depending on market conditions look to take units off-line 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 expensively in the market. Our relationship with EPE is at a critical stage, they have a new vice-president and will be hiring new management to lead their marketing group. We would like to be a part of EPE's marketing effort going forward, but need to continue to prove that our level of service cannot be matched either in-house or by other marketers. I look to each member of the group 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 heaters 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. Be 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 and the final two months of the year.

Please see me with any questions regarding the system.

Thank you.

Bill