MEDIA RELEASE

November 1, 2000

Our members are pleased to hear that Premier Klein intends to respond to the concerns of Alberta's industries with respect to electrical deregulation.

We commend the premier and the government for listening to the concerns of Alberta's manufacturers and processors.

Some of our members have already reported losses in market share and production capacity for production in 2001 due to uncertainty over rates or the impact of quoted rates on competitive pricing. We look forward to having this situation corrected quickly.

We dispute the government's assertion that Albertans want "choice" when it comes to electrical suppliers. We continue to have difficulty obtaining prices from companies on the retail registry. E-mails and faxes have been sent repeatedly and as recently as last week have elicited very little response. Many companies still have only one price quote.

It is clear that even the retailers aren't enthusiastic about customer choice based on the reaction our members are getting to bid requests.

Some companies and large electrical users in Alberta are still unaware they must choose a retailer.

The government has announced today that they will not expand the eligibility criteria for the regulated rate option (R.R.O.)

We are very disappointed with this decision. We feel that it is a decision that favours electrical generators and PPA holders who are already realizing "obscene profits" in the current market.

Alberta's manufacturers and processors need competitive electrical rates in order to be successful. The promised customer choice and competition between retailers is not happening.

In our opinion, there are serious deficiencies in Alberta's electrical market. Some of these deficiencies were identified in the report from the Market Surveillance Administrator that was released in October.

We look forward to our governments' solutions to an electrical market that we see as dysfunctional. Market tools have not matured and opportunities for obscene profits by a few at the expense of many persist.

Swift implementation of the recommendations of the Market Surveillance Administrator and incentives for new electrical generating capacity are seen by our members as important components of any solution.

We will be available for comment on behalf of our members when our government releases its solution to the problems identified by Alberta's industries.

For further information , please contact:

Chris Spearman
Chairman, Industrial Association of Southern Alberta
(403) 317-2115

John Davies, P.Eng., MBA
Secretary & Treasurer, Industrial Association of Southern Alberta
Vice President, Lethbridge Iron Works
(403) 380-1555

Background

The Industrial Association of Southern Alberta (IASA) was founded in 1983. We represent and advocated for the interests of manufacturers and processors in Southern Alberta in order to maintain a positive climate for investment, economic diversity and wealth generation for Albertans.