NETCO CANADA BUSINESS PLAN January 9, 2002 CONFIDENTIAL

NETCO CANADA – Business Plan NETCO Canada - Trading

NETCO CANADA – Business Plan NETCO Canada – Origination (Power and Gas)

NETCO CANADA – Business Plan NETCO Canada – Non-Commercial

NETCO CANADA – Business Plan NETCO Canada – 2002 Gross Margin Budget (U.S.$) Canada Trading: $25MM Canada Origination: $25MM Total Canada: $50MM

NETCO CANADA – Business Plan NETCO Canada – Executive Summary NetCo Canada will have an equal weighted focus with respect to trading and origination activities. Trading - Initially, trading will focus on reestablishing itself with respect to gas at AECO (Alberta), Sumas (B.C.) and Station 2 (B.C.) with its largest trading counterparties. With respect to power, the initial focus will be on reestablishing itself at the Alberta Pool. East trading will continue to prepare for Ontario power market opening anticipated May 1, 2002. Origination - The initial focus will be on recreating a number of power transactions, both in Alberta and Ontario, that were terminated under Enron. With respect to gas, the initial focus will be on creating customer contact and establishing master agreements with key Canadian customers (E&P companies, industrial end-users, LDC’s and utilities).

NETCO CANADA – Business Plan NETCO Canada – Restart Plan I. Communication (i) Canadian Press Release (ii) Customer Contact - key trading counterparties - key customers Closing Date Immediate One Month II. Legal (i) Master Agreements between NetCo Canada and NetCo U.S. (ii) GTC Trading Form (iii) Revised Master Forms (Physical and Financial) (iv) Extra-provincial Registration - B.C., Alberta, Saskatchewan, Manitoba, Ontario and Quebec One Week III. Transportation Agreements (i) NOVA (Alberta) (ii) TCPL (Canada) (iii) Westcoast (B.C.) (iv) Transgas (Saskatchewan) (v) Union (Ontario) (vi) Consumers (Ontario)

NETCO CANADA – Business Plan NETCO Canada – Restart Plan (Con’t) IV. Regulatory 1. Electricity (a) Federal (i) National Energy Board (NEB) Natural Gas Export Permit (b) Alberta (i) Execution of a Pool Participant Agreement with The Power Pool of Alberta (ii) Compliance with the Transmission Tariff of the Transmission Administrator which is regulated by the AEUB (c) British Columbia (i) Electricity Energy Removal Certificate issued by the Ministry of Employment and Investment (ii) Compliance with the Transmission Tariff of B.C. Hydro Grid Operations which is regulated by the BCUC (d) Ontario (i) Electricity Wholesale Licence issued by the OEB (ii) Registration as a participant with the Independent Market Operator (iii) Compliance with the Transmission Tariff of Hydro One which is regulated by the OEB (e) U.S. Customs Service (i) NAFTA Certificate of Origin One Month

NETCO CANADA – Business Plan NETCO Canada – Restart Plan (Con’t) IV. Regulatory (Con’t) 2. Natural Gas (a) Federal (Canada) (i) National Energy Board (NEB) Electricity Export Permit (b) Federal (U.S.) (i) Short Term Natural Gas Import Order issued by U.S. Department of Energy (c) Alberta (i) Compliance with NOVA Natural Gas Tariff which is regulated by AEUB (ii) Compliance with TransCanada Pipelines Natural Gas Tariff which is regulated by NEB (iii) Short Term Natural Gas Order issued by AEUB (d) British Columbia (i) Compliance with Westcoast Natural Gas Tariff which is regulated by NEB (ii) Natural Gas Removal Certificate issued by the Ministry of Employment and Investment (e) Ontario (i) Compliance with TransCanada Pipelines Natural Gas Tariff which is regulated by NEB (ii) Compliance with tariffs of various distribution system owners which are regulated by the OEB (f) U.S. Customs Service (i) NAFTA Certificate of Origin One Month

NETCO CANADA – Business Plan NETCO Canada – Restart Plan (Con’t) V. Contracts (i) GTC’s with priority trading counterparties (ii) Master Agreements with priority customers One Week 60 Days VI. Products FINANCIAL PRODUCTS AECO (Cowan) Fixed vs Daily ROM Fixed vs Daily Prompt month Fixed vs Daily Prompt month + 1 Daily Basis Prompt month Daily Basis Prompt month + 1 Daily for Monthly Index PHYSICAL PRODUCTS Physical Gas for Daily Index Fixed Price ROM Physical Gas for Monthly Index Prompt month Fixed Price Prompt month Physical Gas for Monthly Index Prompt month + 1 Fixed Price Prompt month + 1 Basis Prompt month Basis Prompt month + 1

NETCO CANADA – Business Plan NETCO Canada – Restart Plan (Con’t) VI. Products (Con’t) FINANCIAL PRODUCTS AECO Basis (Lambie) Monthly Basis Prompt month Monthly Basis Prompt month + 1 Balance of Season Basis Prompt Winter Basis Prompt Summer Basis Prompt Calendar Basis Prompt Winter + 1 Basis Prompt Summer + 1 Basis Prompt Calendar + 1 Basis PHYSICAL PRODUCTS AECO Monthly Index (Lambie) Monthly Index Prompt month Monthly Index Prompt month + 1 Balance of Season Index Prompt Winter Index Prompt Summer Index Prompt Calendar Index Prompt Winter + 1 Index Prompt Summer + 1 Index Prompt Calendar + 1 Index AECO Options (Draper) Prompt month Straddle Prompt month + 1 Straddle Prompt month + 2 Straddle Prompt Winter Straddle Prompt Summer Straddle

NETCO CANADA – Business Plan NETCO Canada – Restart Plan (Con’t) VI. Products (Con’t) FINANCIAL PRODUCTS Sumas Basis (Dorland) Monthly Basis Prompt month + 1 Balance of Season Basis Prompt Winter Basis Prompt Summer Basis Prompt Winter + 1 Basis Prompt Summer + 1 Basis PHYSICAL PRODUCTS Sumas Monthly Index (Dorland) Monthly Index Prompt month + 1 Balance of Season Index Prompt Winter Index Prompt Summer Index Prompt Winter + 1 Index Prompt Summer + 1 Index Sumas (Clark) Fixed vs Daily ROM Fixed vs Daily Prompt month Monthly Basis Prompt month Daily Basis Prompt month Daily for Monthly Index Physical Gas for Daily Index Fixed Price ROM Physical Gas for Monthly Index Prompt month Fixed Price Prompt month Basis Prompt month

NETCO CANADA – Business Plan NETCO Canada – Restart Plan (Con’t) VI. Products (Con’t) FINANCIAL PRODUCTS Power Pool of Alberta (Richey/Zufferli) Hourly Swap Next Day Swap Rest Of Month Swap Prompt month Swap Prompt month +1 Swap Rest of Quarter Q1, Q2, Q3, Q4 Rest of Year Prompt Calendar Prompt Calendar +1 PHYSICAL PRODUCTS

NETCO CANADA – Business Plan NETCO Canada – Restart Plan (Con’t) VII. Key Trading Counterparties Gas Counteparties (Financial) American Electric Power Aquila Avista BP Corp North America Inc. Cinergy Coral Duke Dynegy El Paso Engage J Aron Mirant Morgan Stanley Reliant Royal Bank of Canada Sempra Power Counteparties (Financial) Enmax Epcor TransAlta TransCanada

NETCO CANADA – Business Plan NETCO Canada – Restart Plan (Con’t) VII. Key Trading Counterparties (Con’t) Gas Counteparties (Physical) AEC Marketing AEC Storage & Hub American Electric Power Aquila Avista BC Gas BP Corp North America Inc. Carbon Storage Cinergy Coral Cross Alta Storage Devon Duke Dynegy E prime El Paso Engage IGI Mirant Nexen Marketing PanCanadian Petro-Canada Puget Sound Reliant Sabine Storage SaskEnergy Sempra Tenaska Texaco Unocal Williams