April 10, 2006

PEI, Maritime Electric sign power purchase agreement for wind energy

CHARLOTTETOWN, PEI-The Prince Edward Island government and Maritime Electric have signed an agreement under which the utility will purchase 39 megawatts (MW) of wind energy from the PEI Energy Corporation. This includes 30 MW of wind energy to be generated at PEI Energy's wind farm under development in Eastern Kings County, plus nine MW of wind energy from the Ventus Energy project in Norway, PEI, just south of North Cape. PEI Energy has signed a separate agreement with Ventus Energy to purchase power from the Norway wind farm and will sell it to Maritime Electric. Under the terms of the 20-year agreement, the province will provide Maritime Electric with the value of the offset or carbon credits associated with the wind farms, to the extent needed by the utility in order to meet emission reduction targets under the Kyoto Protocol. This would save PEI residents money on their electricity bills, as the utility would not have to purchase carbon credits and may be able to defer the purchase of new generating capacity. Wind energy at North Cape currently supplies approximately 5% of PEI's electricity needs. With the addition of another 39 MW of wind energy, Maritime Electric will be close to meeting its legislated requirement to acquire at least 15% of electrical energy from renewable sources by 2010. Pending environmental approvals, construction of the Eastern Kings wind farm is scheduled to start this summer and to begin operating in late 2006. The project is currently undergoing a provincial and federal environmental impact assessment. Construction of the Ventus project is tentatively scheduled to begin later this year and be completed in 2007.

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