Frederickson Power Facility Sold

EPCOR Utilities Inc. announced recently that is has sold, through one of its subsidiaries, a 49.85 per cent interest in the Frederickson Power facility to Puget Sound Energy (PSE).

EPCOR will receive USD$76.4 million from PSE for its share of the 249 megawatt facility, which is located near Tacoma, Washington.

"With their experience in and commitment to the Pacific Northwest market, PSE will be a very good partner for EPCOR at Frederickson Power," said Brian Vaasjo EPCOR Executive Vice President and President of EPCOR's Energy Division.

"This transaction will mean that all of output from EPCOR's share of the facility is secured under power purchase agreements, an approach consistent with EPCOR's business and risk management strategy. EPCOR will continue to explore further opportunities to expand our core businesses within the Pacific Northwest."

As part of this agreement, EPCOR will continue to operate Frederickson Power, a combined cycle natural gas facility.

EPCOR will continue to supply the Benton, Franklin and Grays Harbor Public Utility Districts with 125 megawatts under the 20-year agreement reached in April 2001. PSE's share-approximately 124 megawatts-of power output from the Frederickson facility will become part of the utility's overall mix of energy resources for serving its customers' electricity needs.

EPCOR Utilities Inc. is one of Canada's top providers of energy and energy-related services and products. Drawing on over 100 years of experience, EPCOR owns and operates power plants, electrical transmission and distribution networks, builds and operates water and wastewater treatment facilities and infrastructure and provides power and water solutions to customers in Alberta, British Columbia, Ontario and the U.S. Pacific Northwest. With over $4 billion in assets, EPCOR is headquartered in Edmonton, Alberta. EPCOR's web-site is www.epcor.ca.

Puget Sound Energy is Washington state's largest energy utility, providing electric service in 11 counties to more than 972,000 customers and natural gas service to about 636,000 customers (300,000 of those customers receive both forms of energy), at a growth rate above the national average. Puget Sound Energy, a regulated utility, is the largest subsidiary of Puget Energy, a holding company traded on the New York Stock Exchange. www.pse.com.