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CO-GENERATION PILOT PROJECT UNDERWAY AT REGINA GENERAL HOSPITAL

Released on October 28, 2002

The Regina Health District, SaskEnergy and SaskPower today announced an

innovative pilot project at the Regina General Hospital. This alternative

energy system called co-generation, produces electricity from natural gas

while using the exhaust to preheat a portion of the hospital's domestic hot

water - domestic hot water is used for cooking and cleaning.



Health Minister John Nilson, on behalf of Crown Investments Corporation

Minister Maynard Sonntag, started two microturbines to begin a two-year

pilot project that will evaluate the potential of co-generation for use in

other facilities in the future. The project will also further the

knowledge of options for distributed generation - the production of

electrical power on a small scale often at a consumer's site.



"This project is an excellent opportunity for both SaskPower and SaskEnergy

to gain practical experience in microturbine technology for co-generation,"

Nilson said. "This pilot project allows for further investigation into the

feasibility of distributed generation, which holds much promise in a

province as vast as Saskatchewan."



Today's announcement and start-up of the microturbines officially begins

the two-year pilot project. Total project costs of approximately $500,000

are being shared equally by SaskEnergy and SaskPower, with the Regina

General Hospital providing the test site.



"The Regina General Hospital's energy system is already state-of-the-art,

but these microturbines take things one step further in terms of energy

efficiency," President and Chief Executive Officer of the Regina Health

District Dwight Nelson said. "Generating electricity in this way lessens

green house gas emissions. As a health care organization, we view this as

another contribution we can make to the health of the population."



"The Government of Saskatchewan is always interested in energy conservation

initiatives," Saskatoon Greystone MLA and Legislative Secretary for Energy

Conservation to Premier Calvert Peter Prebble said. "Bringing SaskPower

and SaskEnergy together with the Regina Health District demonstrates our

government's commitment to the production of electricity in an

environmentally friendly manner."



This is the second pilot project currently underway in Saskatchewan using

microturbine technology. SaskPower and SaskEnergy are currently partnered

with Flatland Exploration Inc. in a distributed generation pilot project

near Carlyle that is investigating the feasibility of using flare gas -

usually burned off during oil and gas extraction - to power two

microturbines.



The Regina Health District, SaskEnergy and SaskPower will be showcasing

this technology at a provincial health care facilities conference in Regina

on October 28th-29th.



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For more information, contact:



Larry Christie Stephen King Lori Foster

SaskPower SaskEnergy Regina Health District

Regina Regina Regina

Phone: (306) 566-3167 Phone: (306) 777-9635 Phone: (306) 766-5289

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