ATCO Power to Build Hydroelectric Generating Station

Water-Generated Green Power To Flow in Southern Alberta Early Next Year

Tuesday March 6, 2001

Calgary, Alberta – ATCO Power will construct a $33 million, 32 MW hydroelectric generating station at the existing Oldman River Dam, northeast of Pincher Creek. This is the first generation project for ATCO Power in southern Alberta and its first hydroelectric project. Electricity from the plant is expected to begin flowing to meet Alberta’s power needs by May 2002. The project will create sufficient electricity to power 25,000 households.

"This is an environmentally positive renewable energy project. It creates no emissions and has absolutely no impact on terrain or water because it utilizes an existing dam and reservoir," said Gary Bauer, President of ATCO Power Ltd. "ATCO Power, under deregulation, is creating another new power source for Albertans within the shortest time possible."

ATCO Power has satisfied all regulatory and environmental assessment requirements for the project. Environmental assessment studies conducted by ATCO Power and approved by Fisheries and Oceans Canada and Alberta Environment confirm that there will be no significant environmental effects resulting from the project.

ATCO Power was awarded the right to develop the project as a result of an open competition for proposals by Alberta Environment, the owner of the dam. Alberta Environment will receive long-term rental fees and will continue to have full control over water levels and releases. Operation of the power project will not affect the water levels in the reservoir. Power will be generated year round, but predominantly during periods of high water availability, generally May through September.

The Oldman project is the second new plant announced by ATCO Power for Alberta in the last week. A $70 million, 92 MW plant will also be brought into service at Valleyview in northern Alberta in November of this year.

ATCO Power and the Peigan Nation of Brocket, Alberta are discussing a partnering arrangement on the hydro project.

ATCO Power is a world leader in the development of environmentally progressive electricity generation facilities. It has built, owns and operates power plants in Canada, the United Kingdom and Australia. This is the eighth new project that ATCO Power has developed in Alberta under market deregulation. ATCO Power has recently built or has under construction with partners seven natural gas fired power plants capable of generating sufficient new electricity to supply 825,000 households. The plants are located at Primrose, Poplar Hill, Joffre, Rainbow Lake, Scotford, Muskeg River and Valleyview. ATCO Power also operates three coal-fired generating stations in Alberta with a capacity of over 1500 MW.

ATCO Power is a member of the ATCO Group, an Alberta-based corporation with a worldwide organization of companies and more than 6000 employees engaged in power generation, utilities, logistics and energy services, industrials and technologies. More information about ATCO can be found on its website, www.ATCO.com.

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