FINAL PROPOSALS FOR ENVIRONMENTALLY PREFERRED POWER GENERATION

The final proposals have been submitted and now the evaluation and selection process begins for the first year of SaskPower's Environmentally Preferred Power (EPP) program. The program creates the opportunity for SaskPower to partner with independent power producers to build and operate small-scale generation projects, with up to 5 megawatts (MW) capacity, in order to meet Saskatchewan's projected energy needs until 2010 with no new greenhouse gas emissions.

"This first year's solicitation process is proceeding as planned, with 12 final proposals submitted by the May 28th, 2004 deadline," Minister responsible for SaskPower Frank Quennell said. "The project selection process now begins and SaskPower hopes to announce the first year's selected projects, totaling up to 15 MW of environmentally-responsible generation, by the end of July 2004."

A brief description of all of the projects submitted can be found on the SaskPower web site at: http://www.saskpower.com/environment/initiatives/epp/eppsol.shtml

An independent auditor will review the final selection process. Once the projects are chosen, the successful proponents will sit down with SaskPower to negotiate a Power Purchase Agreement or PPA that will set out the specific contractual requirements for both parties. The PPA's are expected to be completed and signed by December 2004 and the initial projects are expected to be constructed and in service in 2005.

In September 2003, SaskPower issued its first Expression of Interest for innovative and viable environmentally preferred electrical power generation projects between 25 kilowatts and 5 MW in size. Eligible technologies include flare gas, wind, low-impact hydro, biomass, biogas, heat recovery from an existing waste heat source and solar.

The environmentally preferred power program is an important part of the government's Green Power Portfolio. The Green Power Portfolio includes the recent expansion of the Cypress Wind Power Facility; a joint venture between SaskPower International and ATCO Power to construct 150 megawatts of wind power in the province; and community energy efficiency pilot projects.

To learn more about the Environmentally Preferred Power solicitation, visit saskpower.com.

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For More Information, Contact:

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