Joffre Co-generatioin Owners Complete Project Financing

Thursday, December 16, 1999

CALGARY /CNW/ - ATCO Power, EPCOR and NOVA Chemicals have completed the financing of up to $269 million for their 416 megawatt co-generation plant being built at NOVA Chemicals' Joffre petrochemical manufacturing site in central Alberta and the first draw downs have taken place.

The joint venture agreement between ATCO Power, Epcor and NOVA Chemicals to build the 416 megawatt co-generation plant was announced October 1998. EPCOR and ATCO Power each has a 40 per cent share in the $380 million project while NOVA Chemicals owns the remaining 20 per cent. The financing, which has a 21 year term, will be allocated amongst the owners proportionate to their share in the plant.

"The Joffre project is the largest cogeneration plant in Canada and the first merchant power plant to be funded in Canada on a non-recourse basis" said Jim Campbell, Senior Vice President, Finance and Chief Financial Officer, ATCO Group. The loan was arranged by Royal Bank of Canada, WestLB of Germany and John Hancock Mutual Life Insurance Company of the United States.

"Receiving this funding is a very positive sign for power project developers as it sets a good financing precedent for future merchant power projects," said Brian Vaasjo, EPCOR's Executive Vice-President and Chief Financial Officer.

Construction on the co-generation plant started in late 1998 and the project is approximately 80 per cent complete. The plant is expected to achieve full commercial operation in May 2000. NOVA Chemicals will purchase approximately 128 megawatts to power the petrochemical manufacturing site operations, leaving a merchant component of 288 megawatts available for sale to the Alberta power pool.

The ATCO Group is engaged in electric power generation, transmission and distribution; natural gas gathering, processing, transmission, storage and distribution; workforce housing; industrial noise abatement and technical services and facilities management. More information about ATCO can be found on our website, www.atco.ca

EPCOR is an Alberta-based company that supplies essential elements for living - water, power, natural gas and technology services - to customers in Alberta, Ontario and British Columbia. More information about EPCOR can be found on our website, www.epcor-group.com

NOVA Chemicals is a focused commodity chemicals company producing ethylene/polyethylene and styrenics at 18 facilities in Canada, the United States, France and the United Kingdom. Visit NOVA Chemicals on the Internet at www.novachem.com

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