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SASKPOWER INVESTS $130 MILLION TO UPGRADE POPLAR RIVER POWER STATION

Released on March 2, 2005

SaskPower announced today that it will invest $130 million in a major upgrade at the Poplar River Power Station near Coronach in south-central Saskatchewan. The upgrade is scheduled for completion by summer 2006.

"Through careful planning and strategic investment, SaskPower is maintaining and upgrading our provincial electrical generation facilities on an on-going basis," Minister responsible for SaskPower Frank Quennell said. "SaskPower is committed to delivering power in a safe, cost-effective and environmentally responsible manner to serve our province's growing economy."

The project is planned to replace worn-out boiler components with components of newer and improved design. In addition, SaskPower will upgrade the existing turbine to improve efficiency, and will be replacing the generator. The project will almost double the unit's life expectancy and maintain its viability for another 20-25 years. The upgrade will increase the unit's output from 281 to 315 megawatts (MW) through increased reliability and efficiency.

"SaskPower's three coal-fired power stations, Poplar River at Coronach along with Boundary Dam and Shand near Estevan are the core of our provincial generation fleet," Quennell said. "One of SaskPower's most economical forms of generation, coal – on average – accounts for approximately 60 per cent of the total annual electrical generation."

Babcock & Wilcox Canada has been awarded contracts totalling approximately $50 million to complete the boiler upgrade with work going to their Melville fabrication facility. An additional $30 million will go to Hitachi Ltd. and Hitachi Canadian Industries Ltd., based in Saskatoon, for the turbine and generator components of the project.

SaskPower operates 15 generating facilities with an installed capacity of approximately 3,050 MW, including three coal-fired thermal stations, seven hydro stations, four natural gas peaking stations and the Cypress Wind Power Facility. Additional information can be found at www.saskpower.com

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For More Information, Contact:

Larry Christie
SaskPower
Regina
Phone: (306) 536-2886
Email: 1-888-536 0000

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