CANADA QUÉBEC ENERGY BOARD PROVINCE OF QUEBEC DISTRICT OF MONTREAL Re: Request to lift the obligation to issue a call for tenders to meet the needs of customers with Dual-Energy Business Rate (BT) service contracts NO. : R-3490-2002 HYDRO-QUÉBEC Applicant and PG&E CORPORATION’S NATIONAL ENERGY GROUP INC, a body corporate created pursuant to the laws of Delaware, having its head office at 7500 Old Georgetown Road, in the City of Bethesda, state of Maryland, U.S.A. (Hereinafter “NEG”) Intervenor REQUEST FOR INTERVENTION IN SUPPORT OF ITS PRESENT APPLICATION FOR INTERVENTION PURSUANT TO RULE 8 OF THE REGULATION RESPECTING THE PROCEDURE OF THE RÉGIE DE L’ÉNERGIE, THE INTERVENOR HEREBY STATES THAT: NATURE OF NEG’S INTEREST 1. PG&E Corporation is an integrated, full-service provider of energy and related services throughout North America. It is composed of the regulated California utility and four competitive business units that compete in the North American energy market and that operate separately from the utility; -2- 2. NEG, with regional offices from coast to coast, is one of North America’s leading competitive power producers, has natural gas facilities that connect major producing regions to some of the fastest-growing markets in North America, and operates one of the top energy trading businesses in the United States; 3. NEG is already doing significant business in the Northeast United States, in Ontario and intends to expand its business in markets in eastern Canada and in the Province of Québec; 4. Furthermore, NEG has monitored the evolution of the Québec energy regulatory environment, has intervened in the case R-3401-98 “Revised application for the modification of rates for the transmission of electric power” and is currently participating in the HQ-Distribution Call for Tender A/O 2002-01; 5. Consequently, NEG is generally concerned with the open access, the reciprocity and the market conditions of adjoining jurisdictions; REASONS IN SUPPORT OF THE INTERVENTION 6. NEG would like to have the opportunity to present its views on the different avenues to supply the segment of BT rate Québec customers based on industries practices and energy products available from its own generating and trading portfolio, as well as surrounding power pools, for the ultimate benefit of Quebec ratepayers. -3- 7. Hydro-Québec’s request to lift its obligation to issue a call for tenders and to be authorized to enter into an agreement with Hydro-Québec Production may deny BT rate customers the opportunity to benefit from market prices offered by other supply avenues; 8. In this context, NEG submits that it is in the public interest that NEG’s request for intervention be granted by the Québec Energy Board; 9. NEG respectfully submits that it should be granted such an intervenor status notwithstanding the lateness of its application; 10. NEG apologizes for the lateness of its application, as NEG was only notified last week of the existence of this present case; 11. NEG has reacted as quickly as possible in order to file this request in a timely fashion and to enable Hydro-Quebec to file it’s comments in regard to this request, if any, along with it’s comments on other participant’s requests for intervention; 12. Despite the fact that NEG is filing this request four working (4) days following the set date of July 12th 2002 by the Energy Board, NEG respectfully submits that no prejudice will result for Hydro-Québec and that this filing will have little impact on the advancement of this file; 13. NEG intends to claim participation costs in the present proceedings; -4- 14. NEG requests that a copy of the application and other documents submitted and to be submitted in respect of the present proceeding be sent to: Me Michel G. Ménard LAPOINTE ROSENSTEIN 1250 René-Lévesque Blvd West Suite 1400 Montreal, Quebec H3B 5E9 Tel.: (514) 925-6328 Telecopier: (514) 925-9001 E-Mail: michel.menard@lapointerosenstein.com FOR THESE REASONS, NEG RESPECTFULLY REQUESTS THE QUÉBEC ENERGY BOARD : GRANT NEG’S request for intervention; GRANT NEG intervenor status in the present proceedings; Signed in Montreal, this 18th day of July 2002 __________________________________________ LAPOINTE ROSENSTEIN Attorneys for NEG (695929 v4)