ATCO to build independent power plant at Scotford, Alberta

May 9, 2000

CALGARY, Alberta - ATCO Power, Alberta's leading independent power producer since electrical deregulation, today announced construction of its sixth plant to be built in the province - the $140 million, 150 MW cogeneration power plant at Scotford.

ATCO Power will own and operate the independent power plant which will supply power and steam for the Scotford Upgrader near Edmonton, Alberta. The Scotford Upgrader is part of the Athabasca Oil Sands Project and will be built and operated by Shell Canada Limited. The cogeneration plant will be completed late in 2002 in conjunction with the construction of the Upgrader.

"ATCO has become the significant, value-driven producer of independent power since deregulation and we continue to make more electricity available to meet the growing needs of all Albertans and partners like the Athabasca Oil Sands Project," said ATCO Power President Gary Bauer. "Incorporating industry-leading advanced technology, the Scotford Cogeneration Plant will be one of the most cost-efficient and environmentally progressive in the world."

All power not used by the Upgrader will flow into the provincial power grid to help meet the increasing demands of the growing Alberta economy. Since electrical deregulation commenced in Alberta, ATCO Power has completed, or started construction of five other independent projects capable of generating more than 750 MW -- a new power source equal to the electricity needs of more than 750,000 households.

Bauer noted the advanced technology to be used at the natural gas-fired Scotford Cogeneration Plant will deliver significant environmental benefits, including enhanced fuel efficiency and major reductions in carbon dioxide emissions. Cogeneration uses otherwise wasted exhaust heat and, when compared to stand-alone steam and power production, cogeneration can deliver overall fuel efficiency increases of 50-60% and CO2 reductions of 50-80%.

Other ATCO Power independent power plants in Alberta are located at Primrose, Joffre, Rainbow Lake, Poplar Hill, and Muskeg River. ATCO Power builds, owns and operates power plants across Canada and in the United Kingdom and Australia.

The ATCO Group of Companies 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.

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