January 16, 2006

SaskPower begins evaluating second group of proposals under EPP program

REGINA, SASK-Completed project proposals have now been submitted for the second and final phase of SaskPower's Environmentally Preferred Power (EPP) program. Eleven proponents submitted a total of 17 project proposals representing just over 241 megawatts (MW) of potential electrical generation. As with the first phase, a detailed evaluation and selection process will be undertaken to select one or more projects that best meet the criteria. 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) detailing the specific contractual requirements for both parties. The PPAs are expected to be completed and signed by the end of 2006. The first phase of the EPP program was launched in September 2003. 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 from five to 25 MW, largely due to feedback from proponents who cited projected economies of scale to be gained from slightly larger projects. A brief description of all of the projects proposals submitted can be found on the SaskPower web site at: www.saskpower.com.

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