REA - AMALGAMATION Approval No. U2005-179

MADE at the City of Calgary, in the Province of , on

20th day of May 2005. ALBERTA ENERGY AND UTILITIES BOARD

Central Alberta REA Ltd. Alter Service Area due to Amalgamation Application No. 1398635

Central Alberta Rural Electrification Association Limited (REA), pursuant to Approval No. U2004-201, is the operator of an electric distribution system in the Lac St. Anne – Entwistle – Lacombe – Innisfail – Beiseker areas, while Sion REA is the operator of an electric distribution system in the Lac La Nonne – Sandy Lake areas, pursuant to Approval No. HE 7751.

Central Alberta REA on behalf of itself and Sion REA, by Application No. 1398635 (the Application) registered on April 29, 2005, applied to the Alberta Energy and Utilities Board (the Board) for approval to consolidate their individual electric distribution systems to operate as a single electric distribution system (the Distribution System) under the corporate name of Central Alberta REA (the Operator).

The Board, pursuant to sections 25 and 29 of the Hydro and Electric Energy Act (the Act), being chapter H-16 of the Revised Statutes of Alberta, 2000, hereby approves the Application and grants the Operator an Approval to operate the Distribution System, subject to the provisions of the Act, the Regulations, Orders made pursuant thereto, and to the following terms and conditions:

1. The Distribution System shall be in accordance with the Application and shall be operated only within the service area herein prescribed, unless otherwise specified by order of the Board:

(1) The service area of the Distribution System shall be as shown on the attachments hereto, marked as Appendices A and B to this Approval.

(2) Notwithstanding sub-clause (1) hereof, the Operator shall serve within its service area only members of Central Alberta REA.

2. Subject to the exclusive right to supply the members of the Central Alberta REA, nothing in this Approval shall be construed as granting to the Operator a service area exclusive of any other service area prescribed by order of the Board.

3. The Board may cancel, amend, or suspend this Approval upon its own motion, an application by an interested person, or failure of the Operator to comply with any provisions of the Act, the Regulations, or this Approval.

4. Approvals No. U2004-201 and HE 7751 are rescinded.

Approval No. U2005-179 Page 1 of 3

R.7 R.6 R.5 R.4 R.3 R.2 R.1W.5M. R.28 R.27 R.26 R.25 R.24 R.23W.4M.

T.45

T.44

T.43

T.42

GULL LAKE T.41

LACOMBE T.40

BLACKFALDS T.39 R E D DE ER CYGNET RIVER T.38 LAKE

T.37 C.F.B. PENHOLD

PENHOLD T.36

ER RIV INNISFAIL T.35 ER DE BOWDEN RED T.34

T.33

SUNDRE

R

E T.32

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R E E D DIDSBURY T.31

D

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R T.30 LITTLE

T.29 FIFTHMERIDIAN BEISEKER T.28

IRRICANA T.27

T.26

31 32 33 34 35 36 APPENDIX A TO APPROVAL NO. U2005-179 30 29 28 27 26 25 19 20 2122 23 24 18 17 16 15 14 13 CENTRAL ALBERTA RURAL ELECTRIFICATION ASSOCIATION LTD. SERVICE AREA 7 8 9 10 11 12 6 5 4 3 2 1 PRINTED IN: MAY 2005

Approval No. U2005-179 Page 2 of 3

R.9 R.8 R.7 R.6 R.5 R.4 R.3 R.2 R.1W.5M. R.27W.4M.

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Majeau Lake T.57 Lac La Nonne

T.56 Brock Sandy Lake Lake

Alexis Indian Reserve T.55 No. 133

Lac St. Anne

FIFTHMERIDIAN T.54

Isle Lake ENTWISTLE T.53

Wabamun Lake

T.52

T.51

31 32 33 34 35 36 30 29 28 27 26 25 APPENDIX B TO APPROVAL NO. U2005-179 19 20 2122 23 24 18 17 16 15 14 13 CENTRAL ALBERTA RURAL ELECTRIFICATION ASSOCIATION LIMITED SERVICE AREA 7 8 9 10 11 12 6 5 4 3 2 1 PRINTED IN: MAY 2005

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Approval No. U2005-179 Page 3 of 3