ATCO Begins Construction of New Power Station in Karratha

Western Australia Energy Minister turns sod at a special ceremony


 
 CALGARY, ALBERTA--(Marketwire - March 25, 2009) - ATCO Power today with the Government of Western Australia celebrated the start of construction of a new 86 megawatt (MW) power station in Karratha. Western Australia Energy Minister, Peter Collier turned the sod on what will be the most efficient gas-fired power station in the region.

"ATCO Power is committed to providing additional clean, efficient, reliable power in Australia," said Rick Brouwer, ATCO Power President. "We currently own and operate a 180 MW cogeneration station in Adelaide and a 33 MW cogeneration station in Brisbane. Both those stations provide environmentally friendly power to support businesses and consumers in their respective areas."

The Karratha Power Station will be constructed, owned and operated by ATCO Power and will supply electricity to residential and business consumers on the Pilbara North West Interconnected System (NWIS) under a long-term contract with Horizon Power. The station will be constructed directly adjacent to Horizon's 132 kilovolt substation giving it a direct link into the local network.

Horizon Power Managing Director Rod Hayes said the power station will bring added security to the North West Interconnected System. "With the rapid growth of the NWIS and the increasing demands of energy consumers in the Pilbara, the Karratha Power Station will play a vital role in maintaining a secure and reliable power system," Mr. Hayes said.

The new station - ATCO Power's 20th throughout the world - will be built to an initial capacity of 86 MW but will be designed to allow for expansion to meet the growing needs of the region.

Minister Collier was positive about the long-term benefits of the project for the local community and the State. "This project will be a central component of the ongoing development of the region and its continuing contribution to the State," Minister Collier said. "It not only creates employment opportunities for the construction workforce, but long-term will make a significant contribution to the local community."

The power station will initially be comprised of two 43 MW high-efficiency gas turbines and can be augmented with a heat recovery steam generator (HRSG) that will generate electricity from waste heat. The HRSG would enable the plant to generate approximately one-third more electricity for the same amount of fuel.

The first power is scheduled to be produced by February 2010 with the station operating at full capacity by second quarter 2010.

Horizon Power is the state owned energy company created by the Government of Western Australia in 2006 to meet the needs of residential and commercial electricity customers and resource developments in regional Western Australia. Horizon Power is the energy provider for 31 regional towns and a growing number of rural communities. It is responsible for generating or procuring, distributing and selling electricity to approximately 37,000 customers and major industry in the West Pilbara region.

ATCO Power is a world-class developer, construction manager, owner and operator of technologically advanced and environmentally progressive independent power generation plants. ATCO Power operates power plants in Canada, the United Kingdom and Australia with a combined capacity of approximately 4,800 MW. ATCO Power is a wholly owned subsidiary of Canadian Utilities Limited, part of the ATCO Group of Companies.

ATCO Group is an Alberta-based worldwide organization of companies with assets of approximately $8.7 billion and more than 7,700 employees actively engaged in Power Generation, Utilities (natural gas and electricity transmission and distribution) and Global Enterprises, (industrial manufacturing, technology, logistics and energy services). More information on ATCO can be found at www.atco.com.

Forward-Looking Information:

Certain statements contained in this news release may constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "plan", "estimate", "expect", "may", "will", "intend", "should", and similar expressions. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Corporation believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. Any forward-looking information contained in this news release represents the Corporation's expectations as of the date hereof, and is subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

 ATCO Power, Australia
Geoff Walshe
Managing Director
61 8 8235 4515
Website: www.atco.com
or
Horizon Power
David Martin
General Manager, People and Corporate Services
0427 981 415