SASKPOWER HOLDS RATES STEADY AFTER STRONG FINANCIAL PERFORMANCE IN 2011

Due to positive 2011 results and expectations for a continued strong financial performance, SaskPower will not be seeking a rate increase in 2012. The company made this announcement as it tabled its 2011 Annual Report in the Legislative Assembly today. SaskPower reported an income of $239 million in 2011, representing an increase in operating income of $16 million over the previous year.

"SaskPower's decision to not proceed with a rate application in 2012 is good news for our customers and our province's ongoing economic momentum," Minister responsible for Saskatchewan Power Corporation Rob Norris said. "At the same time, in order to continue energizing Saskatchewan's growth, ongoing capital investments - estimated at $1 billion in 2012 - will be needed to meet increasing electricity demand, renew aging infrastructure and invest in environmentally sustainable technologies."

"During a time of record demand, SaskPower's performance in 2011 exceeded expectations in many areas," SaskPower President and CEO Robert Watson said. "I'm particularly proud of the extraordinary effort made by all our employees in ensuring we continued to provide safe and reliable power to customers during a year of unprecedented flooding and storms. While we're proud of our financial and operational achievements over the past year, we're committed to continue our efforts to strike a balance between maintaining financial stability, ensuring affordability, delivering cleaner sources of energy and providing security of supply."

Key SaskPower highlights from 2011 include:

• $625 million investment in electrical infrastructure - second highest on record.
• New record set for daily energy consumption.
• Continuation of Business Renewal Program, with company remaining on pace to save or avoid $2 billion in spending in 10 years.
• Addition of 112 megawatts (MW) of net capacity - the 86 MW gas-fired Spy Hill Generating Station as well as the 26 MW Red Lily Wind Power Facility - while completing new transmission, distribution and substation projects.
• Launch of the world-leading Boundary Dam Integrated Carbon Capture and Storage Demonstration Project.
• Signing of a MOU with the Government of Saskatchewan and the newly established First Nations Power Authority (FNPA) that will help the province's First Nations advance power generation projects. 
• Work with the FNPA and Meadow Lake Tribal Council on development of the renewable power Meadow Lake Bioenergy Centre. 
• Selection of 20 new environmentally friendly power projects from more than 300 applications through the second annual Green Options (GO) Partners Program lottery, which will add approximately 50 MW to the grid.
• Announcement of a $555 million expansion of the natural gas-fired Queen Elizabeth Power Station that will bring its capacity to 630 MW.
• Completion of an East-West high load corridor to provide a route for large-sized manufactured goods and equipment to pass without power line interference.
• Completion of a Conservation Potential Review that will help maximize future capacity and customer energy savings.
• Completion of a new Corporate Customer Strategy designed to assist SaskPower in becoming an even more service-oriented company that treats customers as partners.
• Continued introduction of new business processes and technologies through the Service Delivery Renewal Program, including the replacement of a more than 25- year-old customer billing system that will anchor more service-improving technologies.
• Completion of the first full year with recently developed processes that dramatically reduce times to connect new customers to the grid.
• SaskPower recognized as one of Canada's best Diversity Employers and one of Saskatchewan's Top Employers.
• Completion of a five-year Workforce Plan.
• Development of an industry-leading Drug and Alcohol policy.
• Celebration of the 20th Anniversary of the SaskPower Shand Greenhouse through distribution of 520,000 seedlings.

The 2011 SaskPower Annual Report is available online at www.saskpower.com.

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For more information, contact:

Shawn Silzer
SaskPower
Regina
Phone: 306-536-2886
Email: ssilzer@saskpower.com
Cell: 306-536-2886