$80 MILLION UPGRADE COMPLETED AT BOUNDARY DAM POWER STATION

Released on September 12, 2003

SaskPower announced today that an $80 million rebuild of Boundary Dam Power Station Unit #6 has been completed. The unit is back on line and producing 300 megawatts of power, about 10 per cent of SaskPower's total output. The work now completed will add another 20-25 years to the life of Unit #6, one of the biggest and lowest cost units in SaskPower's generating system.

"With the completion of Unit #6 rebuild and upgrade, the entire facility will be more efficient in its production of power. Savings realized as a result of this project, compared to the additional costs of installing a new gas turbine to meet this same demand, mean the project will pay for itself in seven years," Minister Responsible for SaskPower Andrew Thomson said.

Boundary Dam Power Station is the oldest and largest generation facility in SaskPower's fleet. This was the last major rebuild and upgrade of the six units at Boundary Dam. Earlier this year, a $62 million project was completed that saw the installation of five new electrostatic precipitators that will capture virtually all of the flyash from the station, and ensures the facility will now meets federal and provincial standards for flyash emissions. The existing precipitator on Unit #6 was upgraded.

SaskPower is committed to maintaining a diversified generation capability that includes coal. SaskPower is a founding member of the Canadian Clean Power Coalition, an association of coal and coal-fired electricity producers actively working to develop technology that will virtually eliminate air emissions of concern, including carbon dioxide, from coal-burning power plants.

"Coal will continue to be an essential part of the multi-fuel approach SaskPower uses to generate electricity in Saskatchewan. At the same time, SaskPower's Green Power Portfolio – which includes wind generation and small scale Environmentally Preferred Power – is part of the government's plan to ensure that all of Saskatchewan's new electricity needs over the next 4-5 years are met from environmentally friendly sources, whose operations do not add to greenhouse gas emissions," Thomson added.

The rebuild included boiler work, turbine and generator refurbishment and the precipitator upgrade. SaskPower installed a new control system, upgraded the coal pulverizer, feed water heaters and other interrelated components. As many as 1000 SaskPower employees and contractors worked on the project, including independent contractors in the Estevan area. The rebuild generated in excess of $50 million worth of economic spin-offs in Saskatchewan out of the $80 million total investment.

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For More Information, Contact:

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