Alberta's premier has retreated from the idea of handing out another round of rebate cheques.

Last month, Ralph Klein raised the possibility of dipping into the $8.7 billion surplus to give Albertans a second round of prosperity cheques.

Butat a pancake breakfast Monday morning at the legislature in Edmonton, Klein said the idea will likely be a non-starter when caucus deals with the surplus in the fall.

"There might be talk about rebates, but I don't know if caucus is of the mind to go ahead with rebates at this particular time," he said.

"There are tremendous pressures to build schools, roads and hospitals, and other facilities."

In January, the Alberta government sent $400 cheques —known variously as resource-rebate cheques, prosperity cheques or "Ralph bucks" — to virtually every man, woman and child in the province. The rebate program cost $1.4 billion.

Klein dishes advice with pancakes

Klein confirmed on Monday he will officially hand in his retirement letter by the middle of September.

All the candidates hoping to replace him as leader were at the legislature breakfast, making the rounds and trying to gather support.

Klein offered some advice for his would-be successors.

"Find out what the people are thinking. Don't read newspapers, don't listen to the radio, and don't watch television. Because you become jaded and you say, 'Oh my God, that's what people really think?'And for God's sake, don't read letters to the editor because they all come from the lefties."