NEW ELECTRICAL SUPPLY OPTIONS TO HELP SUSTAIN ECONOMIC MOMENTUM

With a thriving provincial economy and an increasing need for power, the Government of Saskatchewan is taking steps to ensure the electrical infrastructure is in place to sustain the province's growing economic momentum. SaskPower will immediately undertake several initiatives to meet Saskatchewan's short-term electrical supply needs.

"These projects will enhance the reliability of the provincial electrical system and help ensure the people of Saskatchewan are well positioned to capitalize on opportunities arising from our thriving economy," Crown Corporations Minister Ken Cheveldayoff said. "They also build on the growing interest from the private sector in building electrical generation facilities in Saskatchewan, with SaskPower serving as the purchaser of this power."

In response to the growing need for electricity, SaskPower will:

• Issue a competitive request-for-proposals (RFP) this summer for baseload generation projects sized between 200 and 400 megawatts (MW) with an in-service date of December 2012. Both renewable and non-renewable generation options will be considered.
• Issue a competitive RFP this summer for peaking generation projects sized up to 100 MW in time for the 2011-2012 winter period.
• Add 141 MW of natural gas-fired generation to the provincial grid by the end of 2010, at a cost of approximately $290 million.
• Replace 63 MW of retired generation at Queen Elizabeth Power Station in Saskatoon with 105 MW of natural gas-fired generation by December 2009. The overall cost of the project is approximately $185 million.

"Over the past five years SaskPower has spent in excess of $1.6 billion on an intensive program to renew Saskatchewan's electrical system," SaskPower president and CEO Pat Youzwa said. "In order to help sustain the economic momentum in the province, we will continue to replace aging generating equipment and add new equipment to our already diverse generating fleet."

SaskPower will be seeking proposals from independent power producers for peaking and baseload generation in order to have the largest range of projects from which to select the best options. Further information on the competitive solicitations will be available when they are issued this summer.

Due to the substantial increase in demand for power and the retirement of 63 MW of generation at Queen Elizabeth Power Station, SaskPower has advanced the planned in-service dates for the 400 MW of peaking capacity that was announced in 2007. The location for the 141 MW of natural gas-fired generation, which was included in that decision, has not yet been finalized. SaskPower previously announced plans to add an additional 100 MW of natural gas-fired generation to the provincial grid at the Ermine Switching Station near Kerrobert by the end of 2009.

To ensure long-term support for the province's unprecedented economic growth, SaskPower will continue with the development of other supply options. Building on the already-diverse mix in the current generation fleet, future options under consideration include clean coal, polygeneration, demand-side management, cogeneration, natural gas, imports, purchased power, nuclear, large and small hydro and renewables - like biomass and wind.

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For more information, contact:

Larry Christie
SaskPower
Regina
Phone: 306-566-3167
Email: lchristie@saskpower.com
Cell: 306-536-2886