ATCO Power, EPCOR and Nova Chemicals Conclude Commercial Agreements on 450 Megawatt Joffre Cogeneration Facility

Calgary, Alberta; Edmonton, Alberta – ATCO Power, EPCOR and NOVA Chemicals Corporation (NOVA Chemicals) announced that they have concluded the commercial agreements regarding the construction and operation of a $350 million (Cdn), 450 megawatt (average installed annual p'plex in central Alberta.

Under the terms of the agreements:

•	NOVA Chemicals will serve as project manager for the construction of the co-gen facility through start-up;
•	ATCO Power will serve as facility operator following start-up; and
•	EPCOR and ATCO Power will jointly market power that is surplus to the Joffre site's needs.

"The Joffre co-gen plant will be the largest cogeneration project in Canada,"said Gary Bauer, president of ATCO Power. "The surplus power capacity produced at the site will help to address the recent power shortfalls experienced in Alberta."

NOVA Chemicals' president, olefins/polyolefins Dan Boivin noted, "The co-gen plant will enhance our leadership position as a low-cost manufacturer of commodity chemicals. Co-gen at Joffre is an ideal complement to one of the world’s top petrochemical complexes."

Don Lowry, president and CEO of EPCOR, added, "We are pleased to be participating in this project which offers Albertans the benefits of economic development spin-offs from this major facility, enhancing the provincial power supply and reducing power production emissions as a result of the co-generation process."

The respective ownership interests in the Joffre co-gen facility are:

•	ATCO Power – 40 percent;
•	EPCOR – 40 percent; and
•	NOVA Chemicals – 20 percent.

NOVA Chemicals' Joffre petrochemical complex – which produces ethylene and polyethylene -- is currently undergoing a dramatic $2 billion-plus (Cdn) expansion. The site currently features two ethylene plants and one polyethylene plant. New facilities planned for the site include:

•	a $1.1 billion (Cdn), 2.8 billion pound per year ethylene plant (to be jointly owned by NOVA Chemicals and Union Carbide Canada);
•	a $385 million (Cdn), 850 million pound per year polyethylene plant (owned by NOVA Chemicals); and
•	a $400 million (Cdn) linear alpha olefins plant (owned by BP Amoco).

The co-gen plant, the new ethylene plant and the new polyethylene plant are scheduled to begin operation by mid-year 2000. BP Amoco’s linear alpha olefins plant is scheduled to begin operation in the summer of 2001.

The expanded Joffre site will require approximately 125 MW of power. Power surplus to the site’s needs will be marketed in the provincial power grid. Field construction on the co-gen plant began in May 1998 and is proceeding on budget and on schedule. Approximately 50 percent of the construction work has been completed, and the facility will begin initial operation in the fall of 1999.

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