SASKPOWER CONTINUES TO INVEST IN SASKATCHEWAN

Beginning in 1929, SaskPower began a proud tradition of providing electricity to the residents of Saskatchewan. Today, the corporation still delivers on that commitment.

Seventy-five years after the Saskatchewan Power Commission was first established, SaskPower continues to make significant investments in Saskatchewan. In 2004, more than $300 million was committed to expand capacity, address environmental concerns and enhance the reliability of the system in order to provide customers with the level of dependability they expect and deserve.

"It is very important for SaskPower to continue to invest in the system and make the necessary capital expenditures today to meet the demands of our province now and in the future," Minister responsible for SaskPower Frank Quennell said. "These are very important projects that will help the corporation deliver on their mission of providing power in a safe, reliable, cost-effective and environmentally responsible manner."

In addition to power and a high level of service, the corporation also provided a financial return. SaskPower's 2004 Annual Report, which was tabled with the Saskatchewan Legislative Assembly today, reported a net income of $66 million.

Over the past five years, SaskPower has spent more than $1.4 billion on investments and upgrades to the system, ensuring that the electric system meets the growing demands in the province. Setting the course for another 75 years of service, key initiatives in 2004 included:

·Extensive rebuild and life extension projects totalling more than $46 million at Boundary Dam Power Station, Poplar River Power Station and Nipawin Hydroelectric Station;

·The beginning of construction on a 150-MW wind power project at Rushlake Creek in southwestern Saskatchewan;

·An international mercury emissions capture project at Poplar River Power Station;

·The selection of projects for the first year of the Environmentally Preferred Power (EPP) Program; and

·A renewed commitment to safety – public and employee – through the creation of a new centralized Corporate Safety Department.

With a decrease from the record $187 million net income in 2003, SaskPower experienced mixed financial results in 2004. The decline in earnings was primarily due to a reduction in foreign exchange gains, a non-cash transaction. A better comparison is income before foreign exchange gains and equity investment income, which was $63 million in 2004 compared to $73 million in 2003.

"The results are not surprising because we were forecasting a net income of $67 million in our third quarter report," SaskPower President and CEO Pat Youzwa said. "Once you factor out the foreign exchange gains, we are close to our numbers from 2003. We are also facing many of the same financial pressures that we did in 2003, particularly with regards to fuel costs."

Fuel costs remained at near record levels as a result of continuing high natural gas prices. Natural gas related generation accounted for only 18 per cent of total generation for the year, but it represented 49 per cent of the total fuel and purchased power costs.

Copies of the 2004 SaskPower Annual Report are available online at saskpower.com and at SaskPower Customer Service offices across the province.

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For More Information, Contact:

Larry Christie SaskPower Regina Phone: (306)566-3167 Cell: (306)536-2886