World-leading power plant to be built by ATCO and SaskPower

May 25, 2000

Calgary, Alberta - ATCO Power Ltd. and SaskPower International will partner to build a world-leading 228 MW natural gas fired, cogeneration power plant at the Potash Corporation of Saskatchewan's Cory Mine outside Saskatoon.

The $228 million plant, co-owned by ATCO and SaskPower, will feature leading edge technology and is expected to be fully operational by November 2002.

"As the leading independent power producer in Alberta, ATCO was honoured when SaskPower selected us as their partner of choice after an industry-wide proposal call," said ATCO Power President Gary Bauer. "The advanced design of this cogeneration facility permits our joint venture to meet different power needs, deliver unprecedented value, and have a positive impact on the environment."

The plant will operate mostly in highly efficient cogeneration mode, a process that allows it to generate steam and electrical power from the same energy source. During cogeneration, waste heat -- in the form of turbine exhaust gases that normally are released into the atmosphere at conventional plants - is efficiently recovered to generate huge volumes of steam.

Negotiations with Potash Corporation are nearing completion on the project agreements. The potash mine expects to use 110 tonnes of steam each hour. SaskPower has agreed to purchase for its customer needs all electricity generated by the plant for 25 years.

"This project is a made-in-Saskatchewan supply solution that offers the environmental benefits of cogeneration and the business benefits of developing a strong alliance with ATCO, an industry leader that shares our commitment to excellence," said SaskPower President and CEO John Wright. "SaskPower International has an important role to play in growing SaskPower's business and we look forward to developing additional business opportunities with ATCO."

The plant is also capable of operating in combined-cycle format, an innovative production process that combines a natural-gas turbine and a steam turbine to generate only electricity.

Since deregulation in Alberta, ATCO Power has built or has under construction with partners six independent power plants in the province capable of generating sufficient new electricity to power 750,000 households. The new power plants are located at Primrose, Joffre, Rainbow Lake, Scotford, and Muskeg River. ATCO Power also builds, owns and operates power plants across Canada and in the United Kingdom and Australia.

The Alberta-based 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. More information about ATCO can be found on its website, www.atco.com.

Technical Information and Project Backgrounder is attached.

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