Released on April 19, 2006
Building on a long history of innovation and achievement, SaskPower moved to the forefront of wind generation in Canada by nearing completion of the 150-megawatt (MW) Centennial Wind Power Facility in 2005. The project was part of a record capital investment program of nearly $475 million to expand capacity, address environmental concerns and enhance reliability for SaskPower customers, which was announced in the 2005 SaskPower Annual Report that was tabled in the Saskatchewan Legislative Assembly today.With 83 wind turbines, the Centennial Wind Power Facility will provide enough zero-emission energy to meet the needs of approximately 64,000 homes. By the end of 2005, 51 of the turbines were delivering up to 90 MW to the province's electrical grid through a new switching station, transmission lines, distribution lines and upgraded network facilities. Once the Centennial Wind Power Facility is fully commissioned in 2006, wind power will account for approximately five per cent of the province's total generation capacity – one of the highest percentages in Canada.
"SaskPower is helping lead the way in Canada in terms of wind generation," Minister responsible for SaskPower John Nilson said. "Wind generation is very important to the province because it is central to SaskPower's Green Power Portfolio, which will ensure all new electricity needs until 2010 are met from sources that do not add to greenhouse gas emissions."
In addition to supplying power and a high level of customer service, the corporation also provided strong financial results in 2005. SaskPower recorded a net income of $131 million, up from $66 million in 2004.
Over the past five years, SaskPower has spent more than $1.7 billion on key investments and upgrades toward ensuring that the electric system meets the growing demand in the province safely and reliably, with an increased focus on environmentally responsible electrical generation. Besides the Centennial Wind Power Facility, other key initiatives in 2005 included:
• Extensive rebuild and life extension projects at Shand Power Station, Poplar River Power Station, Boundary Dam Power Station and Nipawin Hydroelectric Station;
• Major line construction took place in 2005, with a rebuild underway on the 54-kilometre transmission line from Meadow Lake to Beauval to improve service along the entire northwest corridor to LaLoche and other northern communities;
• More than $60 million spent across the province on new customer connects;
• Announcing SaskPower's participation in major feasibility studies on a clean coal plant and polygeneration facility; and
• Significant progress made toward becoming a leader in the area of health and safety performance and achieving the international OHSAS 18001 registration standard for SaskPower's Safety Management System.
The increase in earnings was largely due to improved revenues as a result of a full year's impact of the 5.65 per cent system-wide average rate increase that was implemented on September 1st, 2004, as well as an increase in export revenues. Significantly improved hydro conditions in 2005 resulted in lower fuel and purchased power costs.
"We knew that our financial results would be strengthened by the heavy rainfalls in Saskatchewan and Alberta, as well as the impact of the rate increase in September 2004," SaskPower President and CEO Pat Youzwa said. "Our net income for the year was almost identical to the $129 million net income forecast in our third quarter report.
"Despite the increase, we have to closely monitor our financial position in the future. Fuel and purchased power is our most volatile expense and has the potential to vary drastically from year to year."
Fuels and purchased power costs were down $9 million from 2004 due to an improvement in SaskPower's fuel mix – the proportion that each fuel source contributes to the total fuel supply. Offsetting the improved fuel mix were higher natural gas prices and an increase in the total generation and purchased power required to support higher Saskatchewan and export sales.
Copies of the 2005 SaskPower Annual Report are available online at www.saskpower.com and at SaskPower Customer Service offices across the province.
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For More Information, Contact:
| Larry Christie SaskPower Regina Phone: (306) 566-3167 Email: lchristie@saskpower.com Cell: (306) 536-2886 |