December 7, 2000

Dear Mr. Davies:

Thank you for your letter of November 9, 2000 in which you provided settlement data from the Power Pool.

We acknowledge that the current supply/demand situation has resulted in increased electricity prices, and we are taking the necessary steps to ensure a competitive electricity market develops.

In early November, we announced a 10-point action plan to enhance Alberta's supply of electricity. Since then, our work with stakeholders has identified additional measures that the government could undertake during the transition period. We have moved quickly to implement these new measures. I have attached our news releases and regulations that elaborate on these measures.

We recognize that electricity prices are a key component of your business and many others in Alberta. The government will continue to take the necessary steps to ensure a competitive electricity market develops.

We look forward to your input and expertise on actions and measures that will benefit a competitive market.

Sincerely,

Mike Cardinal
Minister
MLA for Athabasca/Wabasca Constituency