Toronto Hydro and Enwave to provide Downtown Toronto with new Electricity Supply

TORONTO, ONTARIO - Toronto Hydro-Electric System Ltd. announced a $1.76 million investment to support Enwave Energy Corporation's development of an 11 megawatt (MW) generation plant. The plant will be housed within Enwave's existing Chilled Water production facility at Lower Simcoe Street.

This natural gas facility will help alleviate stress on Toronto's electricity distribution system on days when the city needs it most.

The Enwave plant will be capable of producing upwards of 11MW of electricity. It will act as back-up generation for Enwave's Deep Lake Water Cooling project and allow Toronto Hydro to draw upon this supply to help the city reduce power consumption on days when demand threatens to exceed supply in the province.

This initiative fits into Toronto Hydro's vision of providing the city with options to reduce electricity use, and improve the environment. During the hot summer of 2005, the IESO called for voltage reductions on three separate occasions and earlier this year tested voltage reduction procedures which indicate that the city will need to look at a number of solutions to solve this problem.

This large conservation and demand management project represents the second Agreement between Toronto Hydro and Enwave and forms part of Toronto Hydro's commitment to reduce peak electricity consumption in Toronto by up to 250MW. Earlier in 2005, the two companies announced a $1.6M, 10MW plan to replace existing air conditioning equipment with Enwave's Deep Lake Water Cooling Technology in the Richmond Adelaide Centre; Adelaide Place; Queen's Park and three other buildings.

Toronto Hydro has dedicated $39.8 million to conservation and demand management (CDM) programs through 2007.

David O'Brien, President and Chief Executive Officer of Toronto Hydro Corporation, said customers look to their utility to provide leadership in conservation. "This project will help reduce the demand in Toronto and contribute to the supply solution in a positive way using conservation. Enwave has brought another outstanding project forward. It's a great example of how local generation projects will add new supply to the provincial grid. "

"Toronto Hydro's support of our 11 MW gas fired generating facility is a testament to its commitment to the citizens of this city to bring about meaningful reduction in power consumption. From Enwave's perspective, it is yet another example our of continued commitment to change the way we use and generate power in ways that respect the environment," said Dennis Fotinos, President and CEO of Enwave Energy Corporation.