Enmax, Fording Coal launch new coal-fired power project

CALGARY, Dec. 21, 2000 (PRNewswire) à‚– ENMAX Corporation and Fording Coal Limited today announced the signing of a letter of intent to investigate the feasibility of constructing a coal-fired electricity generation project in southern Alberta.

The companies are evaluating construction of a 400-megawatt plant near Brooks, Alberta, about 140 kilometres southeast of Calgary. The project would use coal from a mine developed by Fording to produce electricity for ENMAX customers.

“It’s no secret that Alberta in general – and southern Alberta in particular – needs more power to meet growing demand,” said Bob Nicolay, ENMAX president and chief executive officer. “A plant in the Brooks area would ease the need for north-south transmission system upgrades that could cost hundreds of millions of dollars and provide much-needed voltage support in southern Alberta. The plant would provide balance to the Alberta interconnected electric system which is currently served by plants located largely in the northern portion of the province.”

Both ENMAX and Fording have excellent and lengthy track records doing business in Alberta and are committed to taking a reasoned, responsible approach to community and environmental issues. Once ENMAX and Fording reach an agreement on commercial terms for the project, work will begin immediately to secure all regulatory approvals, including the environmental impact assessment and public consultation process. The Brooks Power Project already received an approval in 1992 from the Alberta government for its Preliminary Disclosure.

“The Brooks coal deposit is ideally located in southern Alberta to provide economic electricity in response to current critical shortages. Our low-sulphur coal is among the cleanest coal in the world, making it ideally suited to meet environmental standards,” explains Jim Gardiner, Fording president and chief executive officer. “We are looking forward to working with ENMAX and the community of Brooks to move this project forward for the benefit of all Albertans.”

ENMAX Corporation, a wholly owned subsidiary of The City of Calgary, provides electricity and value-added services to more than 325,000 residential, commercial and industrial customers in Calgary and surrounding areas. Beginning in January 2001, ENMAX also will provide electricity and value-added services to customers in Lethbridge, Red Deer and other Alberta communities.

Fording is Canada’s largest export-coal producer with 32 years of experience, based out of Calgary. The company operates three export-coal mines in British Columbia, two thermal-coal mines in Alberta that supply adjacent power plants, and one operation mining oilsand overburden near Ft. McMurray. Fording also produces and markets industrial minerals from operations in the United States and Mexico. Fording is the mining division of Canadian Pacific Limited.

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