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LONG TERM BENEFITS CONNECTED TO POWER STATION UPGRADE

Released on May 15, 2000

SaskPower announced today in Saskatoon it will be installing improved

technology to upgrade the Queen Elizabeth Power Station (QEPS).



By installing six 25 megawatt (MW) gas turbines and capturing heat from exhaust

gases to produce additional electricity, QEPS will increase its efficiency from

30 to 45 per cent. This will help meet Saskatchewan's future demand for

electricity and over the long term reduce greenhouse gas emissions by 200,000

tonnes per year.



Assembling and maintaining the gas turbines is expected to amount to 20 person-

years of employment, with construction expected to amount to 140 person-years.



"The benefits of upgrading the Queen Elizabeth Power Station are far reaching,"

Premier Roy Romanow said. "Not only does it ensure a future source of safe and

reliable electricity for Saskatchewan residents, but it will also build upon a

high-tech industry in this province and boost local employment during

construction."



"The project provides economic benefits through both short-term and long-term

job opportunities for the people of Saskatchewan," added Crown Investment

Corporation Minister John Nilson. "The new turbine technology will also help

SaskPower meet the province's future energy needs and at the same time, address

significant environmental concerns."



Marubeni Canada is the prime contractor for this project, with Hitachi

providing the gas turbines. Hitachi will set up an international service

centre at its Saskatoon location to assemble three of the gas turbines, to

provide long-term maintenance and through this base establish opportunities for

other markets. SNC Lavalin will provide the balance of the plant.



The total cost of the upgrade is $140 million. The project will be up and

running by the summer of 2002.



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For more information, call:



Larry Christie

SaskPower

Phone: (306) 566-3167 (Regina)

Toll Free: 1-(888)- 536-0000

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