MEDIA RELEASE

November 3, 2000

10 Point Action Plan

We believe that our government's 10- point Action Plan is a positive step. It is a recognition that the electrical market is broken and needs to be fixed.

While it is an action plan with defined goals and responsibilities, it clearly lacks timelines.

Our members believe that our government should demonstrate commitment and a sense of urgency. While we agree philosophically with the points outlined in the 10-point Action Plan, Albertans should be asking our government when will they act on the 10-point plan?

Alberta's manufacturers and processors certainly want to know the answer.

All of the actions outlined are important and should be completed immediately.

We especially support Action # 5. The associated goal is to "Bring on new generation as soon as possible. Without it, we are likely to repeat California's experience where electricity continues to be in short supply. High prices there have served as a disincentive to remedy the short supply situation.

We do believe that incentives will be required in order to create substantial electrical generating capacity.

We would like our government to explain how they are going to encourage investment in new electrical generating capacity in order to bring prices down. We wonder why generators would spend money in order to reduce their profits?

Action # 9 should also be a priority. The Market Surveillance Administrators report was issued more than two weeks ago. Given that we are less than 60 days from deregulation, we are hoping for a prompt response to this report. The report identified the problems that exist in Alberta's electrical market and offered some solutions most of which have yet to be acted on.

We look forward to rapid implementation of the 10-point plan and hope that the government will soon announce its timeline for implementation.

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.