DBRS Confirms the Balancing Pool at AA

DBRS has today confirmed the Issuer Rating of the Balancing Pool (Balancing Pool or the Company) at AA with a Stable trend.

The rating continues to be supported by the Balancing Pool’s legislated right to levy charges on ratepayers to cover any financial shortfalls, its significantly improved financial profile and the continued strong and stable underlying demand for electricity in Alberta.

The Company has posted robust operating results over the eighteen months to June 30, 2006. These positive operating results, coupled with the sale of the Sheerness Power Purchase Agreement (PPA) and the termination of the uneconomical Clover Bar PPA, resulted in a significantly improved financial profile.

DBRS believes that the Company’s financial profile will remain stable over the medium term despite its exposure to spot electricity prices in Alberta, due to the strong and stable underlying demand for electricity in the province spurred by a strong economy and fast-growing population.

Note:
All figures are in Canadian dollars unless otherwise noted.