VANCOUVER, B.C., April 18, 2001Westcoast Energy Inc. and EPCOR Utilities Inc. today announced that Frederickson Power L.P. has completed a 20-year sale of 125 megawatts (MW) of power to three Washington State Public Utility Districts (PUDs).
Based in the Frederickson area of Pierce County, Washington, Frederickson Power L.P. is a partnership between Westcoast Power Inc., a wholly owned subsidiary of Westcoast, and EPCOR Power Development Corporation, a wholly owned subsidiary of EPCOR.
The Benton, Franklin, and Grays Harbor PUDs have agreed to purchase power from Frederickson Power L.P. These power purchase agreements begin in mid-2002, when the 249-MW Frederickson Power Project commences commercial operation.
Construction is underway by the project’s engineering, procurement and construction contractor, KBV-Tacoma, a joint venture between Kiewit Industrial Co. and Black & Veatch Construction Inc.
“This long-term sale creates a solid foundation for our power business in the Washington State area,” said Jeff Myers, President of Westcoast Power. “The Frederickson Power Project represents the continuation of Westcoast’s successful track record of merchant power plant development.”
“This is a logical extension of EPCOR’s business operations that extends our footprint into the Pacific Northwest and creates new opportunities for all EPCOR companies. We look forward to working with the municipalities and providing a reliable, environmentally responsible and economic source of generation for years to come,” said Chris Heffring, President of EPCOR Power Development Corporation (EPDC).
“This power sales agreement is a key element of our overall electricity resource strategy to provide our customers with the most reliable service at the lowest possible cost,” said Rick Lovely, Manager of Grays Harbour PUD.
“Given today’s environment, this is a challenging task. However, the Frederickson resource gives us an effective hedge against the extreme market volatility with a long-term, reliable resource.”
“PUDs have always been about local control for the people we serve. This agreement helps keep the PUD in the driver’s seat when it comes to managing our resources,” said Jim Sanders, Manager of Benton PUD.
These sales are the first following Frederickson Power L.P.’s purchase of the 249-MW combined cycle plant, located south of Puyallup, Washington, which was more than 40% complete at the time of purchase. Completing the project will help respond to the energy crisis affecting the Pacific Northwest by providing a head-start in bringing new sources of power generation online.
Engage Energy, Westcoast’s trading and marketing subsidiary, will provide all marketing of electric products, pipeline and fuel services related to the project. Engage Energy is headquartered in Calgary, Alberta, with Pacific Northwest offices in Bellevue, Washington, and Portland, Oregon.
Power Resource Managers (PRM), headquartered in Bellevue, will provide all scheduling, strategic planning and energy management services for the utility purchasers.
Westcoast Energy Inc. headquartered in Vancouver, British Columbia, is a leading North American energy company with assets of approximately $15 billion. The Company’s interests include natural gas gathering, processing, transmission, storage and distribution, as well as power generation, international energy businesses, and financial, information technology and energy services businesses. More information is available on the Company’s Web site at www.westcoastenergy.com.
EPCOR is an Alberta-based company with $2.8 billion in assets. EPCOR operates power plants, electrical transmission and distribution networks, builds and operates water and wastewater treatment facilities and infrastructure; and sells essential elements for living – power, water and natural gas to customers in Alberta, British Columbia, Ontario and the Pacific Northwest. More information about EPCOR can be found on our Web site at www.epcor.ca.