BC Hydro Selects development Partner For Port Alberni Generation Project

VANCOUVER, B.C. -- -

VANCOUVER, B.C. -- BC Hydro and Calpine Canada Power Holdings Ltd. (Calpine) are proposing to develop a $250 million, 260 MW high efficiency combined-cycle, natural gas-fired electricity generation facility. The currently preferred site is in the Port Alberni Industrial Park at the end of Tebo Avenue. The proposed project will utilize state-of-the-art turbine and emission control technology.

Calpine, based in Calgary, Alberta, is a subsidiary of Calpine Corporation of San Jose, California, one of the leading independent power producers in the US. Calpine is currently developing the Calgary Energy Centre, a 250 MW combined-cycle, natural gas-fired facility near Calgary.

Why is this project being developed?

This project is being developed to meet the anticipated demand for power on Vancouver Island in the winter of 2003/2004. Demand on Vancouver Island is projected to grow at a rate of 1.8% per annum -- the fastest rate of growth in the province. It will also help to replace electricity that is currently being delivered to Vancouver Island via submarine cables, some of which will be decommissioned in stages between now and 2007.

The electricity to be generated by PAGP is part of BC Hydro's committed resource base. This means that BC Hydro's firm electricity supply must increase sufficiently by 2003/2004 in order to meet the system's projected demand.