CALGARY, April 11, 2001 — TransCanada PipeLines Limited, through its wholly-owned subsidiary, TransCanada Energy Ltd., today announced plans to build the Bear Creek Cogeneration Project, an 80 MW natural gas-fired cogeneration power plant near Grande Prairie, Alberta.
The Bear Creek plant will provide electric power and steam services to Weyerhaeuser Company’s Grande Prairie Pulp Mill and will use natural gas as well as biomass-derived steam from the Mill to provide power to all eight main manufacturing facilities of Weyerhaeuser’s Alberta operations. Approximately 30 MW of power will be provided to Weyerhaeuser with the remaining power supplied to the Power Pool of Alberta.
The project was one of the proposals selected by the Province of Alberta’s Transmission Administrator, ESBI Alberta Ltd., under the “Location-Based Credits Standing Offer” process to attract new power generation to the Grande Prairie area in order to resolve the transmission constraints in the area’s transmission system.
“This new, high-efficiency power project is an excellent example of how TransCanada continues to capture growth opportunities in its core businesses,” said Doug Baldwin, TransCanada’s President and Chief Executive Officer. “Through new development and acquisitions, the company is building a strong portfolio of power assets in regions where it has existing competitive advantages. And we will continue to grow our power business in a manner that contributes to continued earnings growth.”
The company’s new cogeneration facility will be developed, owned and operated by TransCanada. Capital cost of the power plant is estimated at $80 million. Subject to regulatory approvals, construction of the plant will commence this fall with expected completion by December 2002.
The Bear Creek plant represents TransCanada’s fifth power development project in Alberta. Other development projects include:
– a 47 MW cogeneration power plant in Medicine Hat (adjacent to TransCanada’s Cancarb facility), which is now operational;
– cogeneration facilities at Carseland (80 MW) and Redwater (42 MW), which are currently under construction; and
– a 6 MW generating facility at Gold Creek.
Also in Alberta, effective January 1, 2001, TransCanada purchased the rights to the electricity generated by the 560 MW Sundance A power plant.
TransCanada is a leading North American energy company. It is focused on natural gas transmission, power, and gas marketing services, complemented by employees who are expert in these businesses. The company’s network of approximately 38,000 kilometres of pipeline transports the majority of western Canada’s natural gas production to the fastest growing markets in Canada and the United States.
TransCanada controls or manages approximately 1600 megawatts of power. The company’s common shares trade under the symbol TRP on the Toronto and New York stock exchanges. Visit us on the internet at www.transcanada.com for more information.