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“At ENMAX, we’re embracing

sustainability as the way to a

brighter and more competitive

future for our company.”

Report Highlights

:

Using Best Available Technologies

ENMAX Energy is installing low NOx turbines in our peaking facility currently under construction near Crossfield, Alberta.

Protecting Land and Habitat In 2008, ENMAX Power

developed an environmental management plan to help minimize the impacts of its replacement of 17 power poles within Calgary's

Weaselhead/Glenmore Natural Environment Park.

Gen E™ Pilot Program ENMAX launched a new pilot program in 2008 called Gen E, which was created to equip teachers with the educational resources to bring energy conservation and emerging renewable energy technologies to life in the classroom.

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Message from Gary Holden

The ENMAX group of companies is embracing sustainability as the way to a brighter and more competitive future. This report summarizes our 2008 corporate responsibility performance with respect to the environment, economy and society, including how we are working to empower our communities and our customers.

ENMAX and its subsidiaries are working to achieve a long-term goal by replacing our existing power portfolio with lower and non-emitting technologies.

To get there, we're acquiring sources of electricity generation that create fewer greenhouse gas (GHG) emissions than existing coal plants, like the natural gas fired Calgary Energy

Centre we purchased last year. In 2008, we also worked on development of more than 900

megawatts (MW) of new generation capacity all of which will be fueled by natural gas, rather than coal. These planned projects, along with our wind power portfolio, currently Alberta's largest, and run-of-river projects in British Columbia, are all part of our efforts to reconfigure our power generation portfolio towards power sources with lower air emission and GHG levels.

We see our customers as a big part of the shift towards less carbon-intensive power generation too. ENMAX Energy has been actively exploring an array of solar and micro-turbine power generating products and their suitability for the Alberta market and sees itself as an enabler of innovative renewable energy technology choices for the home.

As you click through our 2008 Corporate Responsibility Report, you’ll find information on a number of performance measures, which include the ENMAX group of companies' environmental record with respect to air, land and water, our health and safety performance, the efforts we've made to connect with the communities in which we operate, and our commitment to maintaining open, transparent and positive relationships with our many stakeholders. This report is based on the Global Reporting Initiative (GRI) Guidelines and includes an independent review for a number of key sustainability performance indicators outlined by the GRI.

Thank you for your interest in ENMAX. We welcome your questions, input and ideas. For more information, please visit enmax.com. To view the summary version of ENMAX’s Corporate Responsibility Report, please visit enmax.com/cr.

Sincerely, Gary Holden

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About This Report

Report Strategy

ENMAX Corporation's second annual online corporate responsibility report, entitled "Empowering our Communities", discloses data from January 2008 through December 2008 and has been

prepared in alignment with the Global Reporting Initiative (GRI) Third Generation (G3) Guidelines. We wanted the information in this report to address matters of key interest to our stakeholders. In consultation with our employees, we developed an internal list of potential topics for inclusion. We ranked issues based on two criteria: stakeholder interest and business impact. High and medium-ranked issues are covered in this report. We are tracking and managing lower medium-ranked issues internally, and will report on them in the future should they increase in interest and impact. The scope of this corporate responsibility report includes ENMAX's Alberta-based operations and the activities of our subsidiaries, including our BC- based operations. All financial data is presented in Canadian dollars, unless otherwise stated and all numerical data are presented using the metric system.

ENMAX's 2008 Corporate Responsibility report has been prepared by ENMAX based on data derived from internal sources. We've added Disclosures on our Management Approach for each of the categories required by the GRI-G3. In addition, a third party independently reviewed selected information in this report, including our internal carbon footprint, energy consumption, sponsorship and community investments, employee lost time and recordable injury rates and employee

turnover. ENMAX self-declares this report a level B+ based on the criteria for GRI Application Levels.

The accuracy and completeness of the data we present in our corporate responsibility report is a priority for ENMAX.

Note: The following are corrections to data reported in our 2007 Corporate Responsibility Report published online in June 2008:

• ENMAX miscalculated the total hours volunteered to the United Way campaign in 2007, overstating the hours by 1,680 hours. As a result, an adjustment was made to reflect the actual hours volunteered.

• In 2007, ENMAX incorrectly reported its lost time injury frequency rate as 3.44; it should have been reported as 0.29.

• In 2007, several of the values for materials purchased and recycled were either transcribed or calculated incorrectly; these values have been corrected in our 2008 report.

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Our Company

Organizational Profile

ENMAX Corporation and its subsidiaries (ENMAX), is a vertically integrated utility that provides electricity, natural gas, renewable energy and value-added services to residential and commercial customers in Alberta. Wholly owned by The City of Calgary, where our corporate headquarters and major operations are located, ENMAX's core operations are conducted through two subsidiaries, ENMAX Power Corporation and ENMAX Energy Corporation and include electricity generation, transmission and distribution and the sale of electricity, natural gas and renewable energy products. We currently serve 649,000 metered customer locations throughout Alberta and as of December 31, 2008 our workforce consisted of 1,739 employees. While most of our operations and customers are located in Alberta, ENMAX subsidiaries also develop, own and operate power

generation projects in British Columbia, which include run-of-river energy initiatives.

In 2008, ENMAX Corporation earned total revenues of over $2.6 billion, primarily from the sale of 17,785 gigawatt hours (GWh) of electrical power and 32,353 terajoules (TJ) of natural gas.

ENMAX Power owns, operates and maintains our electricity transmission and distribution network in and around Calgary. Our network covers 1,054 square kilometers and comprises 281 kilometres of primarily 138 kilovolt (kV) transmission wires that deliver bulk power through 35 substations and approximately 7,400 kilometres of distribution lines. ENMAX Power also offers metering, meter data management, customer enrollment and financial settlement of customer loads for electricity retailers in Calgary, as well as for four other municipalities in Alberta and is regulated by the Alberta Utilities Commission.

ENMAX Energy is the competitive retail subsidiary of the Corporation, which provides a variety of electricity, natural gas and renewable energy products as well as customer care and energy management services to customers across Alberta. ENMAX Energy's electricity is supplied through a combination of long-term Power Purchase Arrangements (PPAs) and ownership of generation facilities and our total capacity at January 1, 2009 was 1,865 MW.

The following diagram provides more information on some of ENMAX Corporation's subsidiary

companies:

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ENMAX Power Corporation

ENMAX Power manages our infrastructure business line, which includes regulated and non-regulated operations. Our non-regulated operations include the provision of electricity transmission, distribution and regulated rate option sales to customers in Calgary.

ENMAX Power also offers infrastructure services through its two subsidiaries, ENMAX Power Services Corporation and ENMAX Utilities Services Limited, which are not regulated by the Alberta Utilities Commission.

ENMAX Encompass Inc.

ENMAX Encompass provides billing and customer care services to all residential and small commercial customers for both regulated rate and contracted options.

ENMAX Envision Inc.

ENMAX Envision is regulated by the Canadian Radio and Television Commission (CRTC) and provides high-speed data and Internet services to businesses in Calgary.

ENMAX Energy Corporation

ENMAX Energy is a non-regulated subsidiary created to provide a variety of electricity, natural gas and renewable energy products as well as customer and energy management services to retail residential and commercial customers across Alberta.

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Our Portfolio

The following tables indicate the sources and associated capacity of the electricity supplies ENMAX Corporation or its divisions and/or subsidiaries purchase, own and operate or are in the process of developing.

ENMAX Electricity Portfolio

Note: ENMAX purchases natural gas supplies and some power supply from the Alberta market. BC assets are developed under long term agreements through which power is sold to BC Hydro.

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Description of key impacts, risks and opportunities

ENMAX is a vertically integrated utility with business operations that span the production, purchase and sale, transportation and service components of the energy value chain. The Corporation's various subsidiaries operate in both regulated and non-regulated industry environments and wholesale and retail market segments.

ENMAX owns, controls and operates a number of electricity generation, transmission and distribution facilities. The operation of such facilities involves many risks and potential impacts, including public safety incidents, start-up risks, breakdown or failure of generation, transmission or distribution facilities or pipelines, use of new technology, dependence on a specific fuel source, impact of unusual or adverse weather conditions and performance below expected or contracted levels of output or efficiency.

ENMAX's operations are subject to regulation by federal, provincial and local authorities with regard to air, land and water quality and other environmental matters. The generation, transmission and distribution of electricity results in and requires disposal of certain hazardous materials, which are subject to these laws and regulations. In addition, electricity generation facilities create air

emissions, including greenhouse gas emissions, and also impact water and land as part of their environmental footprint.

ENMAX's risk exposures are managed within levels established by the Board of Directors and senior management, implemented by management and monitored by personnel in the business units, the Risk Management department and related functional areas.

Awards and Recognition

Consumers’ Choice for Businessman of the Year

Gary Holden, ENMAX's President and CEO, was honoured by the Consumers’ Choice Institute of North America and the citizens of Calgary, Alberta, who selected him as the 2008/2009

Businessman of the Year. This prestigious award uses an independent survey of local citizens to identify the business person who has made the most noteworthy contribution to the City's economic vitality.

Top 40 Employer

ENMAX was named as one of Alberta's Top 40 Employers for 2009 by the editors of Canada's Top 100 Employers. The criteria used in evaluating companies who apply for the award include the quality of the physical workplace, work atmosphere, social, health, financial and family benefits, vacation and time off, employee communications, performance management, training and skills development and community involvement. This is the third year ENMAX has earned this level of recognition.

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Our Power Portfolio

In 2008, ENMAX purchased the 300 megawatt (MW) natural-gas-fired Calgary Energy Centre (CEC), and began construction of a 120 MW natural-gas-fired peaking plant in

Crossfield (located approximately 43 kilometres north of Calgary. Also in 2008, ENMAX acquired the 63 MW Kettles Hill Wind Farm, eight kilometers northeast of Pincher Creek, to add to our total wind power supply. ENMAX currently owns the 80 MW Taber Wind Farm and 100% of the output from the McBride Lake Wind Farm. ENMAX also owns 99% of the Furry Creek run-of-river plant in British Columbia and is building two additional run-of-river plants on the Clowhom River in BC. These business developments have helped to diversify ENMAX’s power supply portfolio, shifting away from coal and toward less carbon intensive forms of generation.

The graph to the right indicates the sources of power supplied by ENMAX in Alberta and British Columbia. In 2008, approximately

87% of power supplied by ENMAX came from coal-fired plants; 6% came from renewable energy (run-of-river and wind) and 7% from natural-gas-fired

generation (the CEC plant).

ENMAX is currently developing projects to provide more renewable energy in the future. The graphs to the right indicate the capacity of the power plants currently in operation within ENMAX’s supply portfolio and the anticipated portfolio of supply when projects under development are completed, such as the Shepard and Crossfield gas plants in Alberta and the Clowhom run-of-river plants in BC.

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Governance and Ethics

Governance

ENMAX is managed by a 10-member Executive Leadership Team and governed by a 13-member Board of Directors, with 10 or 77% of whom qualify as independent, including the Chair of the Board. Two of the non-independent directors are Aldermen with The City of Calgary, ENMAX's shareholder, and Mr. Gary Holden is President and Chief Executive Officer of ENMAX Corporation. ENMAX defines an independent director as one having no direct or indirect material relationship with the Corporation that could reasonably interfere with the exercise of a member's judgment.

To avoid conflicts of interest, all staff and Board members must comply

with our Principles of Business Ethics, which require declaration of any actual, potential or perceived conflict of interest.

The board, its committees and each individual director are assessed yearly regarding effectiveness and contribution.

The shareholder has regular communication with the board throughout the year, as well as at the Annual Shareholder Meeting. Mr. Gary Holden, President and CEO of ENMAX and each of its subsidiaries, is a member of the Board of Directors and holds regular town hall meetings with employees throughout the year, during which employees are encouraged to ask questions either face-to-face or through email.

Performance Linked to Compensation

Every year, key performance indicators with respect to ENMAX's health, safety and environmental performance are included in the compensation evaluations of senior executives and management.

Board Committees

The Board delegates certain work to Board committees, to allow in-depth analysis of issues and more time for the full Board to discuss and debate items of business at a more strategic or policy level.

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• Audit and Finance

The Audit and Finance Committee recommends to the Board approval of financial statements, financial disclosure documents, financing plans and audit practices. The Committee also reviews the risks inherent in the Corporation's business, the overall financing of risk, loss prevention policies and the information technology plan. • Corporate Governance

The Corporate Governance Committee formalizes recommendations and submits them to the Board on matters that include the annual review of the scope, duties and responsibilities of Board committees and the recommendation of amendments where advisable, the review of directors' individual performance and evaluation of the Board process, the

recommendation of directors to be nominated for election at the annual meeting of the shareholder and the recommendation, when required, of a candidate for appointment to the office of President and Chief Executive Officer of ENMAX Corporation.

The consideration of a candidate as a director will be based on the Corporate Governance Committee’s assessment of the individual’s background, skills, abilities, and whether such characteristics qualify the individual to fulfill the needs of the Board at that time. In addition, the Corporate Governance Committee analyzes all relationships between the directors and nominee directors on an ongoing basis to ensure that the Board of Directors is composed of a majority of individuals who qualify as "independent".

Terms of Reference for the ENMAX Board of Directors requires that the Board ensure that the Corporation is operated at all times within applicable laws and regulations and to the highest ethical and moral

standards. Ethics and integrity are conditions of employment at ENMAX. The Corporate Governance Committee supports this corporate policy by reviewing the effectiveness of an independent "Safety and Ethics HelpLine", which employees are encouraged to use through dialogue with the CEO; and by involving each committee of the Board in the monitoring of legislation and best practices relating to the specific mandate of each committee.

• Human Resources

The Human Resources Committee reviews, and, where appropriate, makes

recommendations to the Board concerning matters related to executive compensation, organization structure, management development and succession planning, union relations and collective agreements, pension governance and health and safety.

• Enterprise Risk Management

The Enterprise Risk Management Committee recommends to the Board for approval the Corporation's risk philosophy, risk acceptance, risk management policies, the assessment of critical enterprise risks and business continuity and disaster recovery programs.

• Investment Review

The Investment Review Committee works with management to discuss business

development opportunities and assists in the development of complete business cases for presentation to the Board.

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• Corporate Social Responsibility, Sustainability and Communications

The Corporate Social Responsibility, Sustainability and Communications Committee is tasked with reviewing the Corporation's overall environmental performance, the

development and projection of the Corporation's corporate image to customers, the public programs relating to corporate social responsibility and the adequacy of the Corporation's efforts to develop and maintain useful relationships with governments. ENMAX's Corporate Social Responsibility, Sustainability and Communications Committee meets three times each calendar year.

View attachments to review the complete CSRSC Committee mandate.

Corporate Memberships

ENMAX actively participates as a corporate utility member in the work of the Canadian Electricity Association, an organization providing a national forum and voice for the electricity business in Canada. In addition to the CEA Membership, ENMAX and its subsidiaries also are members of:

• Alberta Energy Efficiency Alliance

• Alberta Electric Utility Safety Association • British Columbia Chamber of Commerce • Calgary Chamber of Commerce

• Canadian Wind Energy Association • Conference Board of Canada • Edison Electric Institute

• Independent Power Producer's Society of Alberta

• Independent Power Producer's Society of British Columbia • Urban Development Institute - Calgary

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Community

ENMAX recognizes the importance of the role our organization plays in providing safe, reliable electricity and natural gas and other value-added services to the communities we serve. We see the value in working to build long-term, positive and proactive links with our many stakeholders and maintaining a program of active engagement with the community, with other energy industry participants, with various levels of government and in public policy development. It's all part of energizing and empowering the community and working cooperatively to advance mutual interests.

Read our Disclosure on Management Approach for Community issues.

Stakeholder and Aboriginal Engagement

Listening, informing, consulting and involving. All are key elements of ENMAX's Stakeholder & Aboriginal Relations practice, which seeks to engage citizens and communities and build effective, lasting

relationships, particularly in areas where we own and operate facilities.

ENMAX's stakeholder consultation practice is based on the principle that stakeholders have a right to be informed and involved in the decision-making processes for our proposed and existing facilities. To make this happen, ENMAX maintains a comprehensive consultation

management program whereby we identify and regularly communicate with stakeholders, who are organized in our internal systems into the following categories:

• Aboriginal communities • Energy industry participants

• Local, provincial and federal governments • Media

• Members of the general public

• Neighbours living in proximity to existing or proposed facilities • Non-governmental organizations/special interest groups • Regulators

• Suppliers

Provincial regulations concerning public consultation provide the base guidelines that ENMAX follows when seeking to identify and engage stakeholders who may be affected by our proposed or existing facilities (such as two kilometre notification zones and door-knocking for residents and businesses located within 800 metres of a proposed or existing facility). In many instances, we go beyond these requirements and seek wider representation and input from diverse stakeholders who may have an interest in our activities. In addition, we engage a number of different stakeholders in different aspects of our performance, including our employees, our customers, and the vendors and suppliers from whom we purchase goods and services.

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An array of communications tools are used to engage stakeholders, and may include personal visits, open houses, regular newsletter updates, web-based information sites, email and letter mail updates, facility tours, public notices in local newspapers and other communications tools deemed most effective for the specific stakeholder, issue and/or project. The following pie chart indicates the various forms of engagement ENMAX used throughout 2008:

ENMAX also maintains detailed records of the specific issues our stakeholders raise and our

responses to these inquiries, which typically are related to environmental and economic issues. The following list highlights the ten most frequently reported issues received from stakeholders in 2008. Stakeholder Issues Raised – 2008

Supplies/Services Site Location Visual Impacts Noise

Construction Impacts Employment Opportunities

Land Value Water

Air Quality Compensation

In 2008, ENMAX continued the consultation initiated in 2007 with interested parties regarding our plans to build the Crossfield Energy Centre peaking facility near the Town of Crossfield, located approximately 43 kilometres north of Calgary. Project approval was granted by the Alberta Utilities Commission without the need for a public hearing, as there were no interventions filed or

objections raised by stakeholders. Similar consultation efforts are underway engaging local residents and other stakeholders near the community of Shepard, where we are developing plans for a new natural-gas-fired generation plant.

In 2008, ENMAX updated the name of our Stakeholder Relations department to Stakeholder & Aboriginal Relations, which more accurately reflects our organization's commitment to engage Aboriginal peoples in our project development. There were no incidents of violations involving the rights of Aboriginal stakeholders, nor actions taken by Aboriginal stakeholders against ENMAX in 2008.

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Connecting with Communities

Encouraging family and community interaction and participation are hallmarks of the ENMAX group of companies' community investment program.

In 2008, our companies invested more than $4.6 million to support a variety of programs, marketing initiatives, events and sponsorships that reflect our areas of focus: the environment, youth and safety.

ENMAX Corporation tracks the effectiveness of our community investment program using two key sets of criteria from two organizations – Imagine Canada and the London Benchmarking Group. These organizations have differing guidelines for reporting community investment expenditures.

ENMAX Corporation is committed to investing a

minimum of 1% of pre-tax profits, on a three-year rolling average basis, a benchmark

recommended by Imagine Canada, in sponsorship, marketing and community investment activities that support non-profit and registered charities. In 2008, ENMAX's community investment of approximately $3 million (of a total $4.6 million budget) qualified under Imagine Canada's criteria and qualified ENMAX as an Imagine Caring Company.

According to the London Benchmarking Group (LBG) Model valuing our contribution to community programs, we can classify $1.8 million of our community

involvement into three key "motivation" areas*: Social Investments, Philanthropic Investments and

Commercial Initiatives. This amount includes cash and in-kind donations, staff time volunteered during work hours and related community investment program management costs.

*Philanthropic investments are defined as intermittent support for a variety of worthy causes in response to the needs of charitable and community organizations. Social investments are viewed as long-term strategic investments in community partnerships developed to address specific social issues of interest to a company. Commercial initiatives are defined as activities undertaken in partnership with community organizations to help support the success of a company, which are often initiated by commercial interests. For more information see LBG Canada's website at www.lbg-canada.ca.

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Delivering Innovative Programs

ENMAX introduced a pilot program in 2008 called Gen ETM, which was

created to equip teachers with the educational resources to bring energy conservation and emerging renewable energy technologies to life inside the classroom. The Gen E Program is delivered through an interactive website, which serves as an online community, and houses classroom resources, activity kits and discussion guides. Solar technologies and micro-wind turbines are also being installed at several schools,

enhancing the hands-on experience for students during this pilot phase of the program.

ENMAX was also proud to celebrate the tenth anniversary of our Pond Hockey by ENMAX Energy program in 2008, by hosting events in Calgary, Crossfield, Red Deer, Strathcona, St. Albert and Edmonton. Our Pond Hockey program engages youth with local professional and junior hockey players in improving their skating skills while enjoying this healthy outdoor pursuit.

Satisfying Our Customers

In 2008, ENMAX Energy responded to one million customer inquiries and issued 6.5 million

residential utility bills. Every customer transaction is important to the ENMAX group of companies, which is why we conduct annual customer satisfaction surveys to monitor our products, services and overall performance.

In 2008, 400 ENMAX Power customers connected to the ENMAX Power system in Calgary participated in a customer satisfaction survey, which was administered by telephone by a third party. Key results from the survey include:

• 87% of customers surveyed in the ENMAX Power Survey are satisfied with the overall service provided by ENMAX Power in the previous six months; and

• Virtually all (98%) of the residential customers in the ENMAX Power service area surveyed indicated they trust ENMAX Power to effectively maintain their wires and prevent reliability problems.

ENMAX Energy also conducted an online Customer Satisfaction Survey with a sample of EasyMax® customers in Calgary, Edmonton and surrounding areas in November 2007 and February 2008, with more than 400 customers participating. Key results include:

• 95% of ENMAX Energy EasyMax® residential customers surveyed were likely to recommend the EasyMax® program to a friend or colleague; and

• Virtually all (98%) of ENMAX Energy EasyMax® customers surveyed expressed satisfaction with the EasyMax® program overall.

ENMAX recognizes the importance of safeguarding customer information and holds this

responsibility, and the data our customers entrust to us, in high regard. During 2008, there were no substantiated complaints received regarding breaches of customer privacy and/or losses of customer data.

Access to Electricity Services – ENMAX works to make our customers' electricity and natural gas affordable and accessible ....learn more in the Socio-economic section of this report.

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Employees

ENMAX has built a dynamic, high-performance work environment and we've been successful in attracting people who are committed, energetic and focused on delivering results. In 2008, our workforce grew significantly, as we hired more than 500 new employees to help us support the expansion of our generation and renewable energy portfolios. Additional information about ENMAX's employee practices is contained in our Health and Safety section.

Read our Disclosure on Management Approach for Labour Practices. Note: We have not included a Disclosure on Management Approach for Human Rights in this report.

Composition of Workforce

As of December 31, 2008, ENMAX employed 1,739 people. The International Brotherhood of Electrical Workers (IBEW) and the Canadian Union of Public Employees (CUPE) are the two unions representing unionized employees. Non-unionized employees are classified as Management

Professionals (MP).

As of December 31, 2008, the majority of ENMAX employees worked in Alberta and eight individuals worked in our BC operations.

Training and Development

The ongoing training, development and provision of learning opportunities for our employees are priorities at ENMAX. In 2008, our workforce participated in a total of 78,266 hours of training and development activities, which averaged approximately 46 hours per employee. In addition, on an annual basis, ENMAX employees receive regular performance and career development reviews.

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Employee Turnover

The following chart indicates ENMAX's employee turnover rate by age group, gender and region. Overall, our company’s combined voluntary and involuntary turnover rate for both full-time and part-time regular employees is 9.1%. This represents a slight decrease over ENMAX's turnover rate in 2007, which is in part attributed to the repatriation process undertaken during 2008 among call centre employees.

Although there was an increase in the absolute total employee turnover, the rate decreased as the number of permanent employees grew from 1,155 in 2007 to 1,651 in 2008.

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Employee Benefits

ENMAX views benefits programs as an integral facet of employee compensation and strives to offer flexible choices for employees.

Union Representation

As indicated above, a large portion of ENMAX's workforce is unionized and we have two collective agreements with members of the IBEW and CUPE. ENMAX has a stated labour relations philosophy that includes recognizing and respecting the unions' association and presence in our company, and supporting employee involvement with the unions.

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Workplace Diversity

ENMAX strives to be an employer of choice by offering a work environment that is healthy, secure and respectful.

As an organization, we recognize that the imagination, energy, capability and commitment of our employees are critical to our business success. We value highly the backgrounds, experience, viewpoints and talents of our employees. ENMAX is committed to hiring and employment practices that do not discriminate on the basis of race, gender, culture of origin, age, religion, marital and family status, physical disabilities or sexual orientation.

The following demographic profile indicates key characteristics of ENMAX's workforce, by age group, employment and/or union category and gender.

The following chart indicates the salary ratio of men to women throughout ENMAX as of December 31, 2008, by employment category and is calculated by dividing the average male salary by employment category by the corresponding average female salary by category. Salary levels at ENMAX are determined using an objective and equitable process that considers market data, employee education and experience.

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Employee Programs

In-House Call Centre Established

ENMAX completed the process of re-establishing its customer care and call centre functions within the organization in 2008, after having previously used a third-party call centre provider. ENMAX's approach to this process emphasized the importance of informing employees and thoroughly explaining the transition process. All active employees of the outsourced firm who provided services to ENMAX were offered

employment with ENMAX's customer care division, while retaining their existing pay, service and employment levels. No grievances or labour disputes were raised during the transition process.

New ENMAX Employee EcoRebate Offer

In late 2008, ENMAX announced a program designed to introduce ENMAX Energy's alternative technologies to our own employees. A series of rebates, which vary according to the technology selected, are being offered to employees to cover the up-front cost of installation. By being early adopters and among the first in their communities to install ENMAX Energy solar photovoltaic panels, solar domestic hot water systems or micro-wind turbines, it is hoped our employees will generate local interest in ENMAX Energy's development of a renewable energy product

line and select ENERGY STAR rated home appliances and encourage other homeowners to consider these less carbon-intensive power generation options.

Top 40 Employer

ENMAX was named one of Alberta's Top 40 Employers for 2009 by the editors of Canada's Top 100 Employers. The criteria used in evaluating companies that apply for the award include the quality of the physical workplace, work atmosphere, social, health, financial and family benefits, vacation and time off, employee communications, performance management, training and skills

development and community involvement. This is the third year ENMAX has earned this level of recognition.

Women at ENMAX

ENMAX is committed to ensuring that there are no systemic barriers to the advancement of talent within our organization. To that end, ENMAX has taken steps to advance women's initiatives within our organization in an effort to promote business knowledge sharing and integration, leadership development, informal mentorship and succession candidate development.

In Calgary, we are supporters of the Famous Five and Women of Influence Luncheon series. Our process involves partnering senior women with less experienced female employees as guests at the luncheons. The purpose is to provide broader exposure of female talent in the organization and create mentoring opportunities. ENMAX is also represented at WINC – Women's Initiative Calgary, an organization that works to advance equal career opportunities for women. ENMAX is in the process of developing our own internal women's network, which will be led, managed and

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Health and Safety

At ENMAX, we strive to protect the health and safety of our employees, contractors and the public we serve. Our organization employs a safety management system that includes a behaviour-based safety program focused on recognizing and reinforcing safe behaviour with positive feedback. The introduction of the behaviour-based model involved information sessions where employees were presented with day-to-day examples of how to recognize and commend each other for

demonstrating safe behaviour.

Improving Health and Safety Management Systems

In 2008, we took steps to further strengthen ENMAX's health and safety management systems, by adopting the internationally recognized OHSAS 18001 Occupational Health and Safety management system framework, which contains 20 different elements. ENMAX is also conducting a gap analysis and audit and hazard identification processes throughout our operations, as part of our ongoing efforts to continuously evaluate the health and safety impacts of risks associated with transmission and distribution services.

Read our Disclosure on Management Approach for Product Responsibility.

2008 Safety Performance

In 2008, ENMAX's employee lost time injury frequency rate, which is based on the number of lost-time injuries or illnesses per 200,000 work hours was 0.31, representing a total of four injuries, compared with three injuries that occurred in 2007.

ENMAX's 2008 total recordable injury frequency rate was 3.48, a measure of the total number of recordable injuries per 200,000 work hours, not just those that result in lost time. The lower rate in 2008, compared with 5.19 in 2007, is attributed to successful efforts to improve the safety of our meter readers combined with general improvement initiatives such as intensifying focus on hazard and near-miss reporting and development of our behaviour-based safety program.

Another key metric of safety performance – lost time severity rate – is a measure of the severity of injuries and is based on the number of days lost to injury. The lower the rate, the fewer the

number of lost days and the better the performance. ENMAX's lost time severity rate increased from 3.46 in 2007 to 16.08 in 2008. This increase was attributable to a single, serious injury.

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ENMAX Total Recordable Injury Frequency Rate Total Recordable Injury Frequency Rate is defined as the total number of recordable injuries that occur during a calendar year for every 200,000 hours worked.

ENMAX experienced two severe incidents in 2008, one involving an employee and the other involving members of the public. In August 2008, an employee was

severely injured from an electrical contact. The second incident in 2008 involved an ENMAX mobile crane, which came into contact with a Calgary Transit Light Rail Transit train, resulting in injuries as well as damage to the railcar and tracks. Both incidents were fully investigated, root causes identified and corrective actions initiated to prevent similar incidents from occurring in the future.

ENMAX does not currently have formal health and safety committees with joint management/labour representation. All organizational units with field

operations hold monthly safety meetings. These meetings provide opportunities for all workers to raise safety concerns and issues, and are formal in nature, with minutes taken noting action items. The meetings range in size from 10 to 70 workers. Our formalized safety hazard reporting program is another means for all workers to raise safety concerns.

ENMAX reviews our safety performance against the performance of other organizations of a similar size who are members of the Canadian Electricity Association.

Teaching Electrical Safety to Students

ENMAX believes it is important to begin teaching children about the safe use of electricity as early as possible. That's why ENMAX maintains our long-standing program of in-classroom safety presentations to elementary schools in Alberta. In 2008, we took our safety presentations to 119 schools and approximately 6,400 students with messages aimed at helping students make smart and safe choices when using electricity. The presentations provide practical examples for students on how to use electricity safely inside the home and in an outdoor environment, and also provide a series of electricity conservation tips.

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Reducing Trips and Falls

Some of the most common injuries recorded among ENMAX employees are accidental trips, slips and falls. Meter readers are one of ENMAX's employee groups at a higher risk of exposure to these types of injuries, due to the amount of walking they do as they complete their routes. In 2008, ENMAX focused on developing more preventive strategies to reduce these injuries. Strategies included a safety incentive system, which was implemented to solicit and reward contributions to safety awareness, as well as an emphasis on the importance of supportive footwear, and accuracy in route planning, which prevents rushing to make up time. All initiatives helped reduce the

frequency of injuries among meter readers by one third in 2008.

Reliable Electricity Services

The two indicators of a distribution utility's reliability performance are SAIFI – system average interruption frequency index – and SAIDI – system average interruption duration frequency index. SAIFI is the average number of power service interruptions greater than or equal to one minute that a customer experiences over the course of a year. SAIDI is the average duration of a power service interruption that a customer experiences throughout a year.

The following chart indicates ENMAX Power's SAIFI and SAIDI performance for the past five years, including 2008. The Canadian Urban comparative figures for 2008 from the Canadian Electricity Association are not yet available and will be published in the fall 2009.

The increase in power interruptions and duration that ENMAX Power experienced in 2008 is attributable to an unusually high number of significant weather events resulting in pole fires and several substation outages during the year.

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Environment

At ENMAX, being responsible and trustworthy are part of our core values and we recognize the importance of operating in an ethical manner and practicing sound environmental management. Our Environmental Policy outlines our specific commitments, which are summarized in what we refer to as our PACCT with the environment:

Prevention of pollution;

Awareness of Environment Policy and aspects;

Compliance with environmental laws, regulations & policies; Continual improvement of environmental performance; and

Training to ensure competence and minimize environmental impacts

We strive to minimize the impacts of our operations on the environment and to find ways to reduce our ecological footprint. Our Environmental

Management System (EMS) is based on the International Organization for Standardization’s ISO 14001:2004 standard. Each year, ENMAX conducts an internal audit of our EMS to assess its effectiveness in addressing significant

environmental aspects of our business. Every three years this audit is conducted by a certified external auditor. As a member of the Canadian Electricity Association, ENMAX is also a part of the Sustainable Electricity Program (formerly the Environmental Commitment Responsibility Program), and reports annually on its sustainability performance.

With effective environmental management in place and regular internal and external audits, we're able to identify areas of risk and attempt to prevent incidents from occurring. In 2008, we did not incur any environmental fines or penalties directly related to ENMAX operations.

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Air

Air Emissions and Climate Change

To supply enough power to meet our customers’ needs, ENMAX Energy has a portfolio of options from which it can draw power. Currently, most of this power supply comes from coal-fired power plants that are not owned by ENMAX, but with whom we have Power Purchase Arrangements (PPAs). In essence, ENMAX has an arrangement with these plants to control the power dispatched, but does not own or manage the plants themselves. It is ENMAX’s goal to eventually rely less on coal-fired generation and adopt less carbon intensive forms of generation for our customers.

Air Emissions from the PPAs Greenhouse Gas Emissions

Emissions that come from burning coal at the PPA plants include greenhouse gases (GHGs). In 2008, approximately 10 million tonnes of GHGs were generated from PPA facilities and facilities with which ENMAX had tolling arrangements.

The Calgary Energy Centre (CEC) generated a total of 275,014 tonnes of GHGs in 2008. A traditional coal-fired facility with an emissions intensity of one tonne per megawatt hour with the same run time would have produced 675,529tonnes of GHGs. The intensity of GHGs emitted from these different types of generation, supplied by ENMAX in 2008 is depicted in the graph to the right in tonnes of GHGs per megawatt hour (MWh). The overall intensity of ENMAX's entire portfolio, in terms of annual tonnes of GHGs emitted per megawatt hour generated was 0.95 tonnes GHGs/MWh in 2008. Under the terms of the PPAs and tolling arrangements, ENMAX became financially liable for compliance costs with Alberta's Specified Gas Emitters Regulation. In

2008, ENMAX incurred approximately $21 million in environmental compliance obligations associated with GHG emissions. ENMAX reduced these compliance costs by applying almost 350,000 tonnes of GHG offsets from our investment in wind farms and purchases related to biomass and low-tillage offset projects. The costs incurred to ENMAX and paid into the Alberta Technology Fund, since the inception of the regulations, are shown in the following table.

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ENMAX Purchase of Carbon Credits

ENMAX uses carbon credit offsets in accordance with Alberta regulations and protocols, to reduce the

liabilities and costs associated with the GHGs our PPAs, and owned generation facilities generate. In 2008, ENMAX Energy signed a ten-year agreement to purchase agriculturally based carbon offset credits. Other Air Emissions

In addition to GHGs, air emissions emitted from the coal-fired PPA plants include nitrogen oxides (NOx) and sulphur dioxide (SO2). In 2008, these plants emitted a

total of 29,085 tonnes of SO2 and 17,592 tonnes of

NOx. The ENMAX-owned CEC plant emitted 101 tonnes of NOx and zero SO2, due to the negligible sulphur

content of the natural gas used to fuel the turbines at CEC.

Advanced Technology Turbines Lower NOx Emissions at Crossfield Energy Centre

ENMAX's new Crossfield Energy Centre, now under construction and scheduled for completion in the fall of 2009, is among the first peaking facilities in North America to make use of ultra-dry low-NOx turbines. These units deliver improved control of the combustion process, which helps lower the amount of NOx

generated by the natural gas-fired turbines to

approximately 15 parts per million (ppm). This level is approximately 10 ppm lower than the 25 ppm of NOx generated by conventional natural gas turbines. The units also do not require water

for their operation, an important conservation consideration.

In addition, the Crossfield Energy Centre will limit particulate emissions (e.g., soot), and emit about 0.55 tonnes of GHGs per megawatt hour (MWh), which is approximately 45% less GHGs than a traditional coal-fired facilities generate per MWh.

Peaking facility turbines must have the capability to come on quickly to respond to the variations in electrical load demand that occur throughout the day. ENMAX chose this turbine as it is able to excel at this primary function, while limiting emissions that are harmful to the environment.

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Developing Waste Heat to Energy Projects

In September 2008, ENMAX, through a wholly owned subsidiary, along with a joint venture partner announced that commercial operations began at their jointly owned 5 MW Energy Recovery

Generation (ERG) project in British Columbia, under the terms of a 20-year electricity purchase agreement with BC Hydro.

The plant, located in Savona, about 45 kilometres west of Kamloops, generates electricity from the waste heat created by existing gas compressors on a main natural gas pipeline. The ERG process captures waste heat from these compressors and converts it to pressurized vapour to drive a vapour turbine generator.

Our Energy Use and Internal Carbon Footprint

Some of our facilities are entirely owned by ENMAX and therefore the energy use for these is easily tracked (metered). Our largest building is ENMAX’s corporate headquarters, which occupies

337,935 square feet. In 2008, this building used 20,872 gigajoules of natural gas and 8,375,812 kilowatt hours of electrical power. ENMAX’s direct and indirect energy consumption at all our metered facilities is described in the table below:

Other facilities are shared and the energy used for office space can only be estimated (non-metered). We have not reported this energy use for 2008.

2008 Carbon Footprint

ENMAX calculates the amount of GHGs emitted from key non-generation contributors in our Calgary-based operations, including emissions from: our main (metered) facilities, releases of sulphur hexafluoride from electrical equipment, personal vehicle use for business purposes, and our companies' vehicle fleet.

In 2008, ENMAX established a key performance indicator (KPI) target of a 5% reduction in absolute emissions from our 2007 baseline of 15,375 tonnes of GHGs. This was not achieved due primarily to an increase of 500 employees or 28% of our workforce and their subsequent information

technology and space requirements. Therefore, ENMAX's 2008 carbon footprint increased by 8.3% to 16,650 tonnes.

As a growing company, we see energy efficiency as a more realistic and motivating goal. Accordingly, our 2009 target is to reduce emissions intensity on a per employee basis.

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Energy Efficiency Initiatives

Reducing Emissions from Fleet Vehicles

For 2008, we worked on an anti-idling awareness campaign that included implementing anti-idling zones around ENMAX facilities. Replacing older fleet vehicles with newer more-efficient vehicles is also a focus of our fleet management. In total, ENMAX owns 28 hybrid vehicles, two of which were purchased in 2008.

Distributed Generation Technologies

ENMAX is piloting with its employees an array of solar and

wind power generating products for the Alberta marketplace, in an effort to make our organization the preferred source of renewable energy technologies for the home.

Distributed generation is currently at work at two ENMAX office buildings in Calgary. Solar panels installed at our headquarters are tied into the electricity grid and meters track their production. Two wind turbines installed at our South Service Centre location are also tied into the grid.

Together they produce an estimated 800 kWh/month. Single or small turbine installations generate minor amounts of electricity and they also generate awareness of alternative energy technologies.

In late 2008, ENMAX Energy announced a pilot program to allow

employees to invest in and install new micro-generation technologies to help power their homes. By being some of the first in their communities to install ENMAX solar panels, on-demand hot water heaters or micro-wind turbines, it is hoped that our employees will generate local interest in our new products and encourage other homeowners to consider these renewable energy options. Employees were also offered rebates on any micro-generation technologies and purchases of ENERGY STAR rated appliances.

The ENMAX Energy Interpretive Centre

In 2008, ENMAX Energy created a portable Interpretive Centre designed to display the latest alternative energy

technologies we are currently exploring for the Alberta market to advance our plans to bring such technologies to the

marketplace. The Interpretive Centre is equipped with a full kitchen, shower and utility room, and also features operating kitchen appliances powered by 100% solar energy via the photovoltaic and solar hot water heater panels mounted on the roof. In addition, it showcases the combined heat and power unit that ENMAX is researching, as well as energy efficient EasyMax® home services products.

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Employee EcoPledge

ENMAX's EcoPledge program is intended to increase awareness among our employees about the many small, yet meaningful actions that can reduce their environmental footprint. The EcoPledge is also a key performance indicator for employees, which affects annual employee compensation. The number of employee pledges are tracked and employees are surveyed to determine what actions they've taken in areas such as reducing paper waste, recycling, minimizing electricity use, and using car pooling and teleconferencing as alternatives to single vehicle commuting and meeting travel.

Land

Land, Materials and Biodiversity

ENMAX operations affect land in Calgary, southern Alberta, and western British Columbia. In

Calgary, ENMAX Power owns, operates and maintains the electricity infrastructure, which comprises 281 kilometres of transmission wires that deliver bulk power through 35 substations, and

approximately 7,400 kilometres of distribution lines. Through its subsidiary, ENMAX Energy, ENMAX also owns, operates and develops generation facilities, including natural gas plants and wind farm in Alberta and run-of-river in BC.

Wildlife and Habitat

ENMAX’s day-to-day operations in Calgary do not typically affect wildlife or habitat. As part of our environmental management system, significant environmental aspects are reviewed periodically and controls are put in place to manage issues that may arise. We develop an Environmental Assessment or site-specific Construction Environment Management Plan for larger projects to ensure any potential impacts are mitigated. Although ENMAX doesn’t own land in protected areas, our lines sometimes cross natural parks.

Weaselhead Park Transmission Line Rebuild, Calgary, AB During February and March 2008, ENMAX Power completed the replacement of old power poles within and adjacent to the

Weaselhead/Glenmore Natural Environment Park. The 17 new power poles extend from south of the Glenmore Reservoir through the Weaselhead Park, ending north of the reservoir.

ENMAX engaged stakeholders several months prior to beginning work on this project to ensure all stakeholder concerns, including those of The City of Calgary Parks Management and the Weaselhead Glenmore Park Preservation Society, were addressed, and to develop and implement measures that would preserve the park’s ecological integrity. ENMAX Power commissioned an independent biologist to conduct a biophysical impact assessment of the project area in 2007. We followed all recommendations to mitigate any potential adverse environmental effects. For example, ENMAX Power conducted the construction activities while the ground was frozen and used a helicopter to install the power poles, avoiding the use of any heavy

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equipment in the park. Construction workers used all-terrain vehicles on paved pathways only and walked into each pole-site by foot; all equipment was flown in and excavated soil was flown out using cement buckets.

These measures and the environmental management training of employees and contractors prior to the project reduced environmental impacts surrounding the worksite.

Environmental Assessment and Monitoring – Clowhom, BC Run-of-River Project ENMAX, through a wholly owned subsidiary,

began construction in 2008 on two run-of-river hydroelectric plants on the Clowhom River near the west coast of British Columbia. The combined capacity of the two projects will be 22 megawatts (MW).

Prior to construction, an Environmental Impact Assessment was conducted and all necessary approvals obtained. An Environmental

Management Plan was developed to address all potential environmental concerns, from which a Construction Environmental Management Plan (CEMP) was developed to assist contractors in reducing potentially adverse environmental effects of construction. An Environmental Monitor is assigned to the project to ensure all staff and contractors adhere to the CEMP.

Project completion is anticipated for Fall 2009. Once built, an application will be made to have the plants certified under the EcoLogoM program.

On April 22, 2008, a brush fire burned out of control at the Clowhom run-of-river site while a contractor was clearing and burning debris. The immediate site action was insufficient to control the fire and the Ministry of Forests and Range (MOFR) was notified for fire response. Contractors took initial steps to control the fire with helicopter support until MOFR staff arrived. The fire was contained by April 23, limiting the affected area to approximately 40 hectares. MOFR crews

monitored the site for hotspots and dealt with any problem areas. The fire was declared out on May 26, 2008.

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Birds, Bats and Wind Farms, Southern Alberta

ENMAX has complete ownership of two wind farms in Southern Alberta. The Taber Wind Farm, east of Taber, Alberta, has 37 wind turbines and capacity to produce 80 megawatts (MW) of wind power. ENMAX, through a subsidiary, acquired the Kettles Hill Wind Farm, northeast of Pincher Creek, Alberta in June 2008. It has 35 turbines with a 63 MW capacity. Both wind farms have been operating since 2007.

As a result of the Environmental Impact Assessment process for both wind farms, two-year monitoring programs were established to measure the impacts on birds and bats. The tables below demonstrate the number of bird and bat carcasses found near the turbines at each wind farm.

In 2008, ENMAX, through a subsidiary, added Kettles Hill Wind Farm to its wind power portfolio. The chart below reflects the 2008 wildlife mortality rate for the Taber Wind Farm, as well as the Kettles Hill Wind Farm.

Bird and Bat Carcasses Found at the Taber and Kettles Hill Wind Farms

Since 2006, ENMAX has supported the University of Calgary's research on the impacts of wind farms on bats. In 2008, we joined a consortium of companies, called the Wind Energy Bat Research Group, to collaborate on our efforts and share research on the impacts of wind farms on bats. It is through this research that we hope to gain a better understanding of bat and bird fatalities and identify what mitigation measures can be used to reduce this impact.

Releases and Reclamation

The existing and new electrical equipment installed to keep pace with Calgary’s population growth is maintained and upgraded by ENMAX Power to ensure service reliability. Our Environmental Management System helps to ensure the significant environmental aspects of this work are identified and that proper controls are in place. Field crew training plays a key role in ensuring environmental impacts are mitigated. Despite proactive measures to avoid impacts, at times operations will result in a spill of fluids such as hydraulic oil or antifreeze from vehicles or equipment, and leaks or spills of oil from transformers. The majority of the larger releases are typically caused by public vehicle accidents (e.g., vehicles hitting a distribution transformer) or acts

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of vandalism. The chart below presents the total volume of significant spills from 2006 to 2008.

*Significant spills include any spill reported to Alberta Environment because a potential or actual risk to the environment occurred. Although not regulated to do so, ENMAX reports any spill over 100 litres to Alberta Environment.

All significant spills reported in 2008 were cleaned up and no spills were left to be risk managed over a longer term. Risk management is a term used to describe sites where complete clean up is not possible due to the location or timing, or because no risk is presented to the surrounding environment. Three out of the seven formerly risk managed sites were remediated (impacted soil removed to legal land fill) in 2008.

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Materials Management

Since ENMAX Power manages all the distribution (and some transmission) equipment within the City of Calgary, this business line uses the majority of materials that are eventually recycled or require disposal. The tables below indicate some of the materials consumed and/or purchased by ENMAX in 2008 and the amount of materials that were recycled.

Materials Purchased

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Type and weight of waste by type and method of disposal

This table indicates the various hazardous and non-hazardous materials that result from ENMAX operations in Calgary and what method of disposal is used.

ENMAX Power has retrofitted almost all of its transformers with non-PCB insulating oil. All large substation transformers and bulk oil breakers currently contain no PCBs or PCB levels fall well below the mandated limit. Only negligible amounts are left in higher concentrations in sealed equipment, such as bushings capacitors, relays and oil filled cables.

Water

Water Use and Conservation

ENMAX recognizes the value of water conservation and maintaining the quality of our water resources. ENMAX’s current operations do not require large amounts of water and accordingly, this GRI Indicator is not material to our current operations. As our generation plants expand, so will our need for water resources.

On a smaller scale, our office headquarters is EcoLogoM

certified and has implemented a series of water conservation measures such as low-flush toilets and automatic sensor water taps.

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Socio-Economic

Operational Benefits

In 2008, ENMAX paid a dividend of $50 million to our sole shareholder, The City of Calgary. In addition, our organization contributed approximately $4.6 million to communities across Alberta through our annual community investment, marketing and sponsorship programming. Over $143 million was paid out in employee compensation during 2008.

Interaction with Suppliers

In 2008, ENMAX spent a total of $338,540,000 (taxes

included) on goods and services for our business and of this,

approximately 48% was purchased from Alberta-based companies and 78% was purchased from Canadian companies. ENMAX realizes that what we purchase can have a major impact on the environment. Our Purchasing Policy states, "ENMAX will promote the purchase of environmentally preferred products or services."

Read our Economic Disclosure on Management Approach.

We have not included a Disclosure on Management Approach for the Society section of this report.

Infrastructure Investment

ENMAX is engaged in a number of community investment initiatives that return value to the community and enrich the lives of Albertans. A notable example of one of ENMAX's major infrastructure investments is our initiative with the Calgary Zoo. ENMAX is title sponsor for the building of the ENMAX Conservatory, which is now under construction and scheduled for completion in late 2009. The ENMAX

Conservatory will contain a living laboratory

highlighting alternative energy technologies, and serve as a valuable demonstration and education centre that will build energy awareness among the more than 30,000 children who participate in school programs at the Calgary Zoo and the more than 1.2 million people who visit this popular attraction every year.

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Investment in Demand Side Management Efforts

Demand Side Management (DSM) is the electricity industry's term for the efforts utilities make to reduce total demand for electricity, as well as shift demand from peak periods to other times of the day. Both of these DSM measures reduce total demand for electricity which, in turn, helps reduce the need for new power plants and transmission lines, and the size of integrated electricity

systems.

ENMAX actively advanced a number of DSM initiatives in 2008, which included evaluation for commercial launch of smart meters and the preparation if a commercial launch of a number of generation technologies, including micro-wind turbines, solar photovoltaic panels, and solar hot water systems – all of which may enable customers to generate power in energy efficient ways, while exporting surplus power to the provincial grid.

ENMAX also regularly promotes energy conservation

techniques with customers through advertising campaigns and by providing helpful information on our corporate website.

Our Views on GHG Policy Development ENMAX supports the Alberta and Canadian governments’ objectives of reducing GHGs. In developing regulations to achieve this goal, ENMAX's perspective is that governments should ensure regulatory frameworks deliver real GHG reductions, delivered at the lowest cost for the level of reduction achieved. In addition, ENMAX maintains that reductions in GHG emissions should not result in material transfers of wealth amongst regions, should respect the historical decision- making of each province, and should encourage turnover in

capital stock to low and non-emitting supply options.

In 2008, ENMAX actively engaged in discussions regarding public policy development for GHG criteria and air contaminant abatement with both provincial and federal levels of government. ENMAX also participated in various task forces and sub-committees to develop important elements of the larger emissions management framework.

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Developing Alberta's Transmission Infrastructure The Alberta Electric System Operator is proposing to construct at least one, and perhaps two, 500-kilovolt transmission lines from Edmonton to Calgary over the next few years. While the province needs additional infrastructure to meet electricity demand growth, ENMAX's view is that large transmission lines may not be the best choice. Alberta consumers deserve a comprehensive public evaluation of all viable options to meet their need for reliable power, including

generation located next to major loads, and voluntary load curtailment (also known as "demand response"). The benefits of evolving technologies such as micro-generation and advanced metering must also be

considered. If it turns out, based on a comprehensive evaluation, that large transmission lines are the best option, they should be built. On the other hand, if other technically, environmentally, and socially acceptable alternatives can be developed at a lower cost, it is ENMAX's position that Alberta's Transmission Regulation should support those alternatives over the building of new transmission.

ENMAX has presented this position at utility and energy conferences and seminars and has had some success in creating awareness regarding the need to revise conventional transmission policy in Alberta.

Our Accounts

Figures have been rounded.

Please see ENMAX's annual report for more detail.

In 2008, ENMAX Corporation earned total revenues of over $2.6 billion and net earnings of $181.1 million. In addition, ENMAX Power invested approximately $140 million in its transmission and distribution networks for the continued provision of exceptional reliability for Calgary's rapidly growing power needs. ENMAX also declared a $50 million dividend for our shareholder, The City of Calgary, which was paid in four equal installments of $12.5 million. ENMAX's corporate

contributions to the community totaled $4.6 million to support an array of community-based programs, marketing initiatives, events and sponsorships. In addition, ENMAX employed 1,739 people and the annual value of payroll and benefits exceeded $ 143 million.

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Access to Electricity Services

ENMAX works to make our customers' electricity and natural gas affordable and accessible. ENMAX Energy's EasyMax® program provided residential and small commercial customers

with the lowest fixed electricity rate* in Alberta in 2008. ENMAX Energy offers a budget billing plan option for customers that sets an average monthly invoiced amount by service, which is calculated based on the customer's historical consumption over a 12-month period. The Customer Care and Billing System performs monthly reviews of customers' budget plans and makes debit or credit adjustments as appropriate when there is a variation of more than 1.5 times between the amount the customer paid versus the amount of electricity the customer consumed. There is also an annual reconciliation of the budget plan where the remaining debit or credit is invoiced or credited to the customer.

Under the Distribution Tariff regulation, load limiters are to be used in lieu of full disconnection on residential electrical services for non-payment between October 15 and April 15, so that

customers do not suffer undue hardship during cold weather months due to their inability to pay their electricity bills. The load limiter restricts the electrical supply and reduced electricity can only run essential appliances. Full electrical restoration is available once payment of the outstanding account, plus a deposit, is made or application for service is received from another party.

*Based on a comparison of electricity suppliers in Alberta as of February 2009 (Rate Source: Utilities Consumer Advocate

www.ucahelps.gov.ab.ca). It compares electricity rates only and does not compare ENMAX Energy's or any other Alberta electricity supplier's administration charges. Rates subject to change.

Financial implications related to climate change

New provincial regulations aimed at reducing the levels of GHGs took effect July 2007. As a result, in 2008, ENMAX incurred approximately $21 million in environmental compliance obligations

associated with Alberta's Specified Gas Emitters Regulation. ENMAX reduced these compliance costs by applying almost 350,000 tonnes of GHG offsets from our investment in wind farms and purchases related to biomass and low-tillage offset projects. Federal regulations aimed at reducing the level of GHGs are expected to come into force in 2010. As these regulations are not yet in effect, and the compliance details have not yet been finalized, the total amounts of these costs, which could have a material impact on future net earnings, cannot be reasonably estimated at this time. We continue to assess and monitor the implications that these changes in legislations may have on our business.

There were no significant fines or non-monetary sanctions for non-compliance with laws and regulations in 2008.

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