"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