Westcoast Energy Announces Completion Of Power Asset Sale

VANCOUVER, BC -- Westcoast Energy Inc. (Westcoast) has announced that it has completed the sale of two of its Canadian power generating facilities to Calpine Canada Investments Corporation, a wholly owned subsidiary of Calpine Corporation (Calpine) (NYSE:CPN). The sale, which was previously announced on May 15, 2001, includes the 100% interest of Westcoast in the 250 MW Island Cogeneration Plant near Campbell River British Columbia and a 50% Westcoast interest in the 50 MW Whitby Cogeneration Plant at Whitby, Ontario.

Westcoast sold the two power generating assets for approximately $Cdn 320 million. Westcoast expects to record a net gain after taxes and other costs of approximately $ Cdn 80 million. The gain on the sale includes revenues from power sales and delay payments from the prime contractor.

The Island Cogeneration Plant, although not complete, is delivering electricity to BC Hydro on a preliminary basis pursuant to an Electricity Purchase Agreement. As a cogeneration facility, it will also provide steam to Norske Skog for industrial processing under the terms of a 15-year contract.

The Whitby Cogeneration Plant is a natural gas-fired facility which delivers electricity to Ontario Energy Financial Corporation, formerly Ontario Hydro, under the terms of a 20-year agreement. Located in Whitby, Ontario, the plant entered commercial operations in September 1998 and provides steam to Atlantic Packaging.

"We are pleased to see this transaction move to a timely conclusion," said Michael Phelps, Chairman and Chief Executive Officer of Westcoast. " It means that we are able to redeploy assets to other high growth opportunities in our portfolio."