From the Desk of Gary Holden

President and CEO, ENMAX Corporation

To All Employees of ENMAX,

May we all live in interesting times! Chinese Proverb

The election of 2010 is over and Calgarians must be very happy with the result. Three
cheers for Mayor Nenshi! Like Mayor Bronconnier before him, we have a leader with
vision and a sincere hope for a better Calgary. At ENMAX, we also have a vision for
energy in Alberta that Mayor Nenshi has publicly supported in the past. I know it is only
hours since the election ended, but it appears we are off and running with a great start!

Having said that, there is some unfinished business from last week. I am sure many of
you are wondering what the attacks in the media were all about. It was not easy to take.
We knew it was based on untruths and misrepresentations of facts. We knew it was
initiated by a couple of individuals who hoped to personally gain if we faced difficulty. At
its most sinister, it was designed to turn a new council against our plans as a company.
It was very difficult to remain quiet through it all but I can assure you it was the right
thing to do. I received many notes of support and I appreciated all of them. Thanks to
all of you for showing your strength and solidarity. It meant a great deal to the senior
team and I.

While much uncertainty still remains, this memo is to set the record straight on all of the
negativity and to set us on a path forward. We have new leadership in Calgary and we
should look to the future with renewed enthusiasm and conviction.

To start to set the record straight, we must go back a few weeks. The anti-ENMAX
campaign took flight on September 16, 2010. On that date, one of our competitors sent
a defamatory letter to the media, prospective mayor candidates and city aldermen.
This competitor, (who shall go nameless because he does not deserve the dignity of
being recognized) appears to have had two primary goals.

His first goal was to simply sully the reputation of ENMAX. More specifically, he hoped
to denigrate the competence of the management team. He used inaccurate
representations of facts to do so. Since the letter was sent to the media, he might have
hoped that the misrepresentations were believed and printed. Since the letter went to
prospective councilors and mayor candidates, he hoped to bias the new council against
us. He might even have hoped that the new council would remove the current
leadership team and take his chances, as a competitor, with a different one.
From the Desk of Gary Holden
President and CEO, ENMAX Corporation

Secondly, this competitor was motivated to remove ENMAX from the retail market. This
would clearly enhance his business prospects. He appears to have reasoned that if he
tarnished the reputation and embarrassed the company enough, especially in the eyes
of a new council, he would be able to engineer a stoppage of ENMAX's activity in the
market; a market that his company hoped to thrive in. His document specifically solicits
alderman to stop ENMAX from selling retail energy, to not to invest in new power plants
and to revise our prices. His document predicts dire consequences if we were to remain
in the market with our strategy and product offering. You can probably imagine all of the
rules and laws this must violate; especially since we can identify over a dozen facts and
figures that are false statements used to support his dire predictions.

Throughout his document he explicitly argued ENMAX is incompetent, ENMAX should

change its prices to his liking or, even better for him, get out of the retail market he
would like to serve. For the record, our legal group asked to remove the defamatory
material from his web site and he did eventually comply with that request.

As it turned out, the media did not cover these allegations. While I cannot be certain
why, they seem to have steered clear of the issues that were obviously self-serving and
anti-competitive. They seemed to have sensed the “ulterior motive” and stayed clear of
it. Notwithstanding the good sense, they did find the titillation of so-called “private
parties” and high salaries to be irresistible.

As some of you may know, the media spoke to our Chairman and a couple of the
alderman board members. They did a fantastic job of telling the real story, but
sometimes the real story isnt nearly as interesting as the one that grabs the eye of the
public. I understand this is how newspapers sell. I actually do not have a problem with
that part of it. Unfortunately, to overcome it, we will have to put effort into making sure
the real facts are on the table; even the parts of the document that are not covered in
the media. In short, the truth shall set us free.

In time, we can only hope that those that care the most will take the time to listen to the
real story. The repair job starts tomorrow. That rascals remarks are still in the hands of
the new council, and we have our work cut out for us. We will be making every effort
possible to set the record straight with them as soon as we can.

As some of you might be thinking, where did this information come from in the first
place? We asked the same question. It was quite clear that this information could only
have been assembled by a senior executive who was no longer in the loop. We have
deduced that only someone close to the action would have known which facts to
conveniently leave out. After a short process of elimination, we have a pretty good
idea who this was. Given its malicious intent and possibility this person may not be
finished, we are compelled to stop this person as soon as possible. We have initiated
legal steps to stop this malicious behavior. I have faith that this will work. But for all of
you, rest assured, we will not take this extraordinary effort to hurt our reputations lightly.
From the Desk of Gary Holden
President and CEO, ENMAX Corporation

In addition to legal avenues, we are reporting this activity of the competitor to regulators
as it clearly uses leverage of the election, combined with malicious and false
information, to harm his direct competitor. It is simply not legal or fair competition to
damage reputations and solicit political help to gain a competitive advantage. He does
not even disguise his real intent very well as he outright asks for intervention by current
and future aldermen into ENMAX's participation in the market. We are confident that
the regulators will see it that way as well.

As for the comments about my salary, let me share these thoughts with you. It is true
that I am paid well. If some of you find that objectionable I can relate to that sentiment.
I remember thinking the same thing when I was younger. It is a very human reaction to
question the pay packets of the well paid. If it makes you feel any better, I can assure
you that the ENMAX executive pay scale is benchmarked with our peer companies
(such as TransAlta, EPCOR and ATCO); just as it is at all levels throughout the
company. I know I am blessed and fortunate to have this role and getting handsome
pay cheques is one of the benefits. From what I can see, the Board have been very
careful to not get ahead, or behind, the market pay scale for this role. I can also assure
you that they put as much effort into checking these pay scales each year as we put into
the pay scales for IBEW, CUPE and MP class employees.

On the other issue so thoroughly covered by the media, some of you, especially the new
employees, will not be aware of the real story behind the corporate events. So let me
tell you the real story.
The mischief started when the corporate events were
characterized by the competitor as “private parties” and
conveniently overlooked the real business purpose. To
be clear, they were not frivolous fun. They were hard
work to organize and required virtually the entire
marketing team to execute. When you get a chance,
ask those employees who worked tirelessly to make
them the success they were. To their credit, they were
a part of a carefully crafted marketing plan that began
our foray into bringing “home generation” to the
marketplace. Some of you will remember the
component of that plan when we introduced the
employee home generation plan at the leadership
conference and town hall meetings in Dec 2008. The
media were not told the truth of these events. I
suppose if they heard the real story, it might not have been a story at all. (See pictures
from the event included herein).

To flesh out the facts even further, you should know the genesis of the plan started even
earlier. In early 2008, we first contemplated an industry launch of our home generation
From the Desk of Gary Holden
President and CEO, ENMAX Corporation

technology. The original concept considered having the launch, with some top notch
entertainment as a drawing card, at a hotel ball room somewhere in the inner city. As
many of you know from our Christmas celebrations, I have a few contacts in the music
industry and felt I could encourage someone to be a drawing card for such an event.
(We did just that and will describe that later.) Over the course of the year, and after
discussing the options and costs with our event planners and our marketing team, we
decided we could save the costs of setting up in a hotel by having it at my residence; as
it was an exciting opportunity to be where the technology was
actually in operation.

We decided we would organize the event after we were

confident the equipment was running well enough. It was felt
that the live demonstration would be particularly convincing to
industry guests that we were indeed serious about bringing it
to market. We also needed to choose a time when we knew
industry would be available.

From a scheduling point of view, we timed the event to

coincide with the annual IPPSA Conference of 2009. We
invited in the order of hundreds of customers, industry
participants, government decision makers and technology experts to witness the
technology we were planning to bring to the market. The performer we engaged
was Gord Downie, and we all believed he was a key reason why nearly 300 of these
invitees came to the event. His performance made the evening especially memorable
for all who came. Gord is also a big fan of ENMAX. He is particularly impressed with
the progressive, innovative thinking exhibited in your company. His manager assured
me that if it were not for our corporate image he would not have chosen to participate.
Furthermore, Gord did not personally benefit from his appearance. His appearance fee
went one of his favorite charities.

As all of you who were a part of the events know, I did not sell tickets and keep the
money personally, I did not charge the company for the use of my residence, I did not
gain personally in any way. In fact, we did have some damage to personal property
which I also did not charge the company to repair. To be even more clear, I personally
paid for the installation of the equipment, and my family has been very tolerant with the
testing phase of this equipment as we continue to get the kinks out. I did not ever
expect to get anything for free and our marketing and legal departments are carefully
monitoring this to ensure this is above board.

For months afterward, I received endless compliments and acknowledgments from

those who attended the corporate event. Many considered the opportunity to see our
ideas and business plans in this very memorable way, a real "gift". Many people
became strong supporters. In fact, when we put in a proposal to receive technology
funding from the government for this technology, I believe the credibility gained during
From the Desk of Gary Holden
President and CEO, ENMAX Corporation

this event helped. Everyone in the industry knew we were serious and committed to the
idea of bringing solar power, micro-wind and cogeneration to the residential market
place. Everyone knew the game was changing. Many guests involved thought the
event was a great move towards reaching this long-term goal. As you all know now, we
are about to go-live on our plans to start making these offers across the province.

The other party reference by the media was part of the 2008 Leadership Conference.
Tom Cochrane agreed to attend a similar event at my home for leadership team
members and their spouses on the evening of the leadership conference. It was also
the eve of our company Christmas celebration. This was our internal soft launch; our
"sneek-a-peek" event so to speak. Tom was gracious to appear that evening as he was
in town for our Christmas party. It was arguably the most memorable leadership
conference we have ever had. I heard from one senior executive that it really was
evidence that the intent to make ENMAX a great place to work was absolutely true. As
many of you would know, this means a lot to me. I've always promoted a sense of
family at ENMAX and I see this in the same light. More importantly though, in my view,
this soft launch was instrumental in establishing the conviction for the long-term plan.

With all that said, where to from here? Many of you have joined me in putting
technology in your home, on your rooftop or in your back yard. Together we can truly
say we walk the talk. Many of you have shared the enthusiasm that these marketing
plans have created. Many of you have put in tremendous effort and commitment into
making these dreams a reality. Encana and Conoco-Phillips have joined us in offering
these technologies for their employees in the same way. We are slowing building
momentum and I can truly say it is looking like one of the most amazing and rewarding
initiatives that I have been a part of in my business life thus far.

With all that said, we must now continue to execute our plan. The new council will be
keen to get the real facts as we get back to the job of inventing a new energy future.
We had a great relationship with the previous council and administration and I am
confident that will continue.

You are all a part of a talented and innovative enterprise. Many of you joined ENMAX
because of our vision. Many of you are challenged because it is not easy. Some of you
will be discouraged as the industry recoils and pushes back. We are being disruptive.
We are breaking old models and inventing new ones. We are contributing to a greener
future, adding to a market where consumers can really choose and you should all be
very proud.

I look forward to turning that new page together. Thanks for listening and have fun out
there! All for now,

Gary Holden