CALL FOR REQUEST FOR PROPOSALS FOR ENVIRONMENTALLY PREFERRED POWER

SaskPower has issued a Request for Proposals (RFP) for the second phase of its Environmentally Preferred Power (EPP) Program. The EPP program is designed to encourage and develop independent and environmentally low-impact generation facilities. In the second phase, SaskPower is seeking 32 megawatts (MW) of private generation for a total of 45 MW for the program. SaskPower will negotiate long-term agreements to purchase the power generated and feed it into the Saskatchewan electrical grid.

"The RFP is being distributed to proponents who responded to last February's Expression of Interest and whose initial project overviews met the program's eligibility criteria," Minister responsible for SaskPower Frank Quennell said. "We have had an excellent response. In total, 48 projects from 29 proponents have qualified representing almost 545 MW of eligible projects from the entire range of targeted technologies."

The proposed projects breakdown into the following targeted technologies:

- Biogas/Biomass 52.9 MW

- Flare Gas 0.2 MW

- Heat Recovery 41.8 MW

- Low-impact Hydro 1.0 MW

- Solar 12.9 MW

- Wind 435.9 MW

- TOTAL 544.7 MW

"Proponents have until October 25th to submit their formal proposals," SaskPower President and CEO Pat Youzwa said. "The program is doing what we hoped it would - bringing good projects forward and providing an opportunity for companies, organizations and entrepreneurs to make the case for their projects and proven technologies."

"The Environmentally Preferred Power Program is a significant component of the Green Power Portfolio," Quennell said. "It is a clear example of our commitment to a green and prosperous economy."

Three project proposals totalling approximately 13 MW were selected in the first phase of the program. A Power Purchase Agreement has been signed with Alliance Pipeline to build a five-megawatt generation facility at the site of a compressor station in Kerrobert. Negotiations to purchase power are underway with the two other projects, which are both wind power.

The EPP program was designed to provide the opportunity for SaskPower to partner with independent power producers to build and operate smaller-scale generation projects. This will help SaskPower provide for new load-growth to the year 2010 with environmentally low-impact generation that produces no new greenhouse gas emissions. The program is also a venue to evaluate technologies currently available for smaller-scale generation. Part of the process in implementing the EPP initiative was to listen to what independent power producers were saying, to be flexible and to revise the program where it could be improved.

In addition to the first phase of the EPP program, the Green Power Portfolio includes community energy efficiency pilot projects, last year's expansion of the Cypress Wind Power Facility and SaskPower International's 150 MW wind power project now under construction in southwest Saskatchewan.

To download the Request for Proposal and to see a public overview of the EPP program, visit: http://www.saskpower.com/environment/initiatives/epp/epp.shtml

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For More Information, Contact:

Larry Christie SaskPower Regina Phone: (306) 566-3167 Email: (888) 536-0000