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PHASE II PROPOSALS SUBMITTED FOR ENVIRONMENTALLY PREFERRED POWER GENERATION

Released on December 21, 2005

Completed project proposals have now been submitted for the second and final phase of SaskPower's Environmentally Preferred Power program (EPP). As with the first phase, a detailed evaluation and selection process now begins to select one or more projects that best meet the criteria.

The Environmentally Preferred Power program was designed to provide the opportunity for SaskPower to partner with independent power producers to build and operate environmentally low-impact generation projects to help SaskPower provide for growing customer demand to the year 2010. The EPP solicitation is targeted at smaller power projects that either use waste streams as a fuel source or use proven technologies that produce no new emissions.

"These projects bring money to different regions of the province, create construction jobs and in most cases on-going employment for operation and maintenance," Minister responsible for SaskPower Frank Quennell said. "The second phase of the program will bring to a close this successful initiative to balance generation needs and environmental responsibility. The EPP program is an excellent example of our government's vision of a green and prosperous economy."

"The EPP program is not only helping to fulfill our objective to meet projected load requirements in an environmentally responsible way without adding additional greenhouse gases, it is proving that we can diversify our generation mix, incorporating smaller and privately-owned projects," SaskPower President and CEO Pat Youzwa said. "The knowledge and experience gained through this program will benefit SaskPower greatly as we look to the future."

In the second phase of the EPP Program, a total of 17 project proposals were submitted by 11 proponents totaling just over 241 MW of potential electrical generation. A brief description of all of the projects proposals submitted can be found on the SaskPower web site at: www.saskpower.com.

An independent auditor will review the final selection process. Once the projects are chosen, the successful proponents will meet with SaskPower to negotiate a Power Purchase Agreement (PPA) that will lay out the specific contractual requirements for both parties. The PPAs are expected to be completed and signed by the end of 2006.

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 included flare gas, wind, low-impact hydro, biomass, biogas, heat recovery from an existing waste heat source and solar. For the second phase, the size limit for eligible projects was increased to 25 MW, largely due to feedback from proponents who were responding to projected economies of scale to be gained from slightly larger projects.

The environmentally preferred power program is an important part of the government's Green Power Portfolio strategy. The Green Power Portfolio includes the Cypress Wind Power Facility, SaskPower International's 150-megawatt Centennial Wind Power Facility; 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
Cell: 1-888-536-0000

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