SASKPOWER POSTS SOLID YEAR WHILE PREPARING FOR MAJOR SUPPLY DECISION

SaskPower’s commitment to infrastructure renewal is at the forefront of its operational and financial highlights, as outlined in the 2006 SaskPower Annual Report tabled in the Saskatchewan Legislative Assembly today.  The Corporation is reporting a net income of $93 million.

The 2006 SaskPower Annual Report also notes a number of initiatives designed to secure the future supply of electricity for the province.  The 150-megawatt (MW) Centennial Wind Power Facility was officially commissioned, giving Saskatchewan one of the highest percentages of wind generation capacity by control area in Canada.  The project is a centrepiece of SaskPower’s Green Power Portfolio (GPP), which will ensure all of Saskatchewan’s new electricity needs until 2010 are met from environmentally friendly sources.

Beyond the GPP, two-thirds of SaskPower’s generation fleet will have to be refurbished or replaced in the next 20 years.  During 2006, the Corporation advanced studies around the next major supply source by continuing the review of a comprehensive mix of options.  These include: polygeneration, clean coal, wind, biomass, hydro, nuclear and demand side management.  Through its Clean Coal Project, SaskPower is also examining the feasibility of what would be the world’s first utility-scale near-zero emissions pulverized coal plant.

“SaskPower continues to build on its long-term commitment to maintain exceptional customer service while effectively managing the financial challenges associated with a $4.2 billion infrastructure,” Minister responsible for SaskPower John Nilson said.  “When it comes to future supply, the Corporation will keep the best interests of its customers front and centre while meeting Saskatchewan’s growing need for electricity.  All decisions will require the balance of a range of challenging financial, environmental and social considerations.”

Over the past five years, SaskPower has spent more than $1.6 billion on system upgrades to ensure the growing demands of customers are met in a safe, reliable and sustainable manner.  Other key highlights from 2006 include:

• Completion of $130 million Poplar River Power Station Unit #2 rebuild, with expected payback in five years;
• Signing of three Environmentally Preferred Power contracts with NRGreen Power Limited Partnership for 15.3 megawatts generated from heat recovery projects;
• Construction of a 76 kilometre transmission line between Island Falls and Pelican Narrows, strengthening northern service;
• Record $82 million spent on new customer connects, partially attributable to heightened activity in Saskatchewan’s oilfields;
• Development and testing of mercury and particulate reduction technologies at the Emissions Control Research Facility at Poplar River Power Station;
• Incorporation of new larger cavern storage space by NorthPoint Energy Solutions to help stabilize SaskPower’s natural gas fuel costs;
• Over 84 per cent of goods and services purchased by SaskPower sourced from Saskatchewan vendors;
• Delivery of over 800 community events and programs through partnerships with non-profit organizations;
• Customers provided with tips on how to reduce electricity use and save money through the Power Savings campaign; and
• Shand Greenhouse nears five million seedlings distributed to community and non-profit groups since opening.

“From an operational perspective, SaskPower is well positioned to continue to successfully deliver on its commitment to provide a safe, reliable and sustainable supply of electricity to all of our customers,” SaskPower president and CEO Pat Youzwa said.  “Financially, SaskPower presently has a stable revenue stream and debt load.  However, we will closely monitor and manage growing expenses associated with necessary investments in our infrastructure, highly competitive labour and materials markets, and fuel and purchased power.”

Copies of the 2006 SaskPower Annual Report are available at SaskPower Customer Service offices across the province and online at saskpower.com.

About SaskPower

As the principal supplier of electricity in Saskatchewan, SaskPower serves more than 445,000 customers and manages $4.2 billion in assets.  The Corporation operates three coal-fired power stations, seven hydroelectric stations, four natural gas stations and two wind facilities, with an aggregate generating capacity of 3,214 megawatts.  SaskPower maintains more than 155,000 kilometres of power lines, 52 high voltage switching stations and 174 distribution substations.

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For more information, contact:

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