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SECOND PHASE PROJECTS SELECTED FOR ENVIRONMENTALLY PREFERRED POWER PROGRAM

Released on May 24, 2006

SaskPower has selected four project proposals for the second and final phase of its Environmentally Preferred Power (EPP) program. The three heat-recovery projects and one wind power development proposal were chosen after careful review and analysis. In total, 17 proposals were submitted by 11 proponents.

NRGreen Power Limited Partnership will install three 5.1 megawatt (MW) heat-recovery units at Alliance Pipeline Limited compressor station sites near Alameda, Estlin and Loreburn, while Gaia Power – Algonquin Power Inc. will build a 24.75 MW wind power facility near Moosomin. NRGreen Power will also operate a heat-recovery unit selected in the first phase of the program that is being installed this year at Alliance's Kerrobert compressor station. The Gaia-Algonquin wind power initiative will be the first major project to capture the power of the wind in eastern Saskatchewan.

"I am enthusiastic about the projects selected, the technology and the economic benefits that construction and their operation will bring to these communities," Minister responsible for SaskPower John Nilson said. "The EPP program, along with the recently completed Centennial Wind Power Facility, are two of the cornerstones of our Green Power Portfolio strategy to build a green and prosperous economy. Saskatchewan is clearly a leader in developing environmentally responsible generation projects."

"The EPP program was developed to meet new load growth to the year 2010 with smaller, generation projects that produce no new greenhouse gases and contribute to environmental sustainability," SaskPower President and CEO Pat Youzwa said. "With this selection, which concludes the final solicitation for the program, we have achieved the objectives and results that were set out at the start."

"SaskPower will continue to work with independent power producers who bring forward viable and cost-effective generation projects and will examine each on its merits and in relationship to SaskPower's changing load requirements for the province," Youzwa said.

SaskPower will now enter into detailed negotiations with the two proponents selected in order to develop and sign Power Purchase Agreements (PPAs). The PPAs will lay out specific contractual requirements for both parties. Once the PPAs are signed, proponents can complete required environmental assessments and detailed interconnection studies as well as purchase the technology for their projects.

To learn more about the EPP program, and SaskPower's commitment to the environment, visit saskpower.com.

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For More Information, Contact:

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

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