1. NETCO CANADA BUSINESS PLAN January 9, 2002 CONFIDENTIAL

2. NETCO CANADA – Business Plan
NETCO Canada - Trading

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

4. NETCO CANADA – Business Plan
NETCO Canada – Non-Commercial

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

6. 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).

7. 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)

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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