Saskpower International Acquires 30% Interest in Oilsands Cogeneration Plant

Thursday, January 10, 2002

Regina Saskatchewan; Calgary, Alberta: SaskPower International has acquired a 30 percent ownership interest in ATCO’s Muskeg River Mine Cogeneration Project. The 170 megawatt (MW), plant is currently under construction at the Athabasca Oil Sands Project’s (AOSP) Muskeg River Mine, located about 75 kilometres north of Fort McMurray, Alberta. 

The Muskeg River Mine Cogeneration Project, which is expected to be in service by late 2002, will provide steam and power to the Muskeg River Mine. The mine will use all of the steam output, and about half of the power output with the remaining power sold into the Alberta power grid. Albian Sands Energy Inc., a company established by the AOSP joint venture, is building and will operate the Muskeg River Mine.

ATCO Power and SaskPower International are already partners in a 228 MW cogeneration project under construction at the Cory potash mine site near Saskatoon. 

“This project is a solid example of how SaskPower can work together with the private sector to achieve business success,” SaskPower International’s President and CEO David Hughes said. “By partnering with ATCO to build this cogeneration facility, SaskPower International is developing its business potential, both within Saskatchewan and beyond its borders, providing an opportunity to generate new revenue for SaskPower, diversify our revenue stream, and bring positive benefits to the people of Saskatchewan.”

“We are pleased to have a second power project with SaskPower International and look forward to further joint investments in the future,” said ATCO Power President Gary Bauer. “The combined resources of two western Canadian energy companies provide tremendous strength in pursuing new opportunities.”

Non-recourse financing of approximately $160 million has recently closed for the $225 million project. The balance of the project will be funded by equity. SaskPower International's 30% equity contribution is expected to be $20 million.

ATCO Power is a world leader in the development of environmentally progressive generation facilities. It has built, owns and operates power plants in Canada, the United Kingdom and Australia. In addition to the Muskeg River and the Cory Mine cogeneration projects, ATCO Power currently has under construction two other power plants at Oldman River Dam and AOSP’s Scotford Upgrader. ATCO Power also operates 12 natural gas turbine plants worldwide with a capacity of over 2150 MW and 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.

SaskPower International is a wholly owned subsidiary and the development arm of SaskPower. SaskPower has an installed capacity of 2,980 MW and maintains more than 150,000 kilometres of power lines. The corporation operates three coal-fired generating stations, seven hydro stations and four natural gas stations.

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