SASKPOWER RELEASES 2003 ANNUAL REPORT

SaskPower's 2003 Annual Report was tabled in the Saskatchewan Legislature on April 21st, 2004. The report indicates that SaskPower remained on solid financial footing in 2003, posting a net income of $187 million and a dividend to the Crown Investments Corporation of $169 million.

"SaskPower had a strong year in 2003, and continued to fulfill its mission to deliver power in a safe, reliable, cost-effective and environmentally responsible manner," Minister responsible for SaskPower Frank Quennell said. "The corporation completed and initiated a number of very important projects that are improving service delivery and enhancing reliability for Saskatchewan people."

Key initiatives completed in 2003 include electrical generation projects at the Cory Cogeneration Station near Saskatoon, the Boundary Dam Power Station in Estevan, and the Nipawin Hydroelectric Station. System reliability for northern customers was improved with the completion of the Prince Albert to Timber Cove section of the PA8 powerline rebuild project.

SaskPower also began implementing its Green Power Portfolio, most notably with the announcement of a 150-megawatt expansion to electrical generation from wind in Saskatchewan. In total, SaskPower invested $267 million in capital projects in 2003.

While net income rose to $187 million compared to $137 million in the previous year, income before foreign exchange gains and equity investment income was $73 million in 2003, down from $131 million in 2002.

"We're concerned about the effect foreign exchange is having on our financial performance," SaskPower President and CEO John Wright said. "Although our net income is relatively high, we saw some significant cost pressures in 2003, particularly in fuel costs."

Total fuel and purchased power costs were a record $502 million in 2003, compared to $366 million in 2002. This $136 million increase was due to rising natural gas prices, an increase in sales volumes and a change in the generation mix. To proactively address environmental concerns, and given the relatively low capital costs, natural gas-fired generating facilities have formed the majority of new generation added by SaskPower in recent years.

Copies of SaskPower's Annual Report are available online at www.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