[cdn-nucl-l] Ontario Power Generation and TransCanada Energy Establish Partnership for Energy Centre

["Adam McLean" <adam.mclean@utoronto.ca>]

Posted on OPG's news list on December 19, 2002 and at:
http://www.opg.com/info/news/Newsdec19_2002.asp
The possibility of 550 megawatts of fossil-fuel ash and waste being
added to Toronto's waterfront...

Adam

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Ontario Power Generation and TransCanada Energy Establish Partnership
for Energy Centre

December 19, 2002

[Toronto, Ontario]: Ron Osborne, President and Chief Executive Officer
of Ontario Power Generation (OPG), and Hal Kvisle, Chief Executive
Officer of TransCanada PipeLines Limited, today announced the formation
of a 50/50 limited partnership called Portlands Energy Centre L.P.
(PEC). The partnership will assess the viability of developing a natural
gas-fuelled energy centre to meet the growing energy needs of Toronto's
downtown core.

The partnership will immediately commence the Environmental Assessment
process and, in parallel, finalize the viability studies on the project.

While discussions between OPG and TransCanada started some months ago,
today's announcement flows from the direction OPG received from Energy
Minister John Baird on November 12 to accelerate its assessment of the
generating project at the Hearn site through a public-private
partnership.

The project is subject to the Environmental Screening Process for
electricity projects as outlined in the Ontario Ministry of the
Environment's "Guide to Environmental Assessment Requirements for
Electricity Projects." The first open house will be January 23, 2003 in
a downtown Toronto location. This process considers all environmental
aspects of the proposed project, including but not limited to
anticipated impacts on human health, air and water quality, geology and
soils. The eventual document, which is delivered to the Ministry of the
Environment and subject to review by the public and other stakeholders,
reports on all environmental findings as well as the results of
consultations with the public and regulatory agencies.

As currently envisaged, subject to the outcome of the various elements
of the viability studies, the proposed PEC would include a 550 megawatt
combined cycle natural gas-fuelled co-generation facility which would be
located on a portion of the site of OPG's former R.L. Hearn Generating
Station in the Portlands area of Toronto's downtown waterfront.

"I'm encouraged to see the formation of this public-private partnership
and the beginning of the assessment process," said Baird. "If we are to
ensure a reliable supply of clean and affordable energy for future
generations, we must continue to develop projects such as the Portlands
Energy Centre."

"Our goal in starting the approvals process is to develop an energy
centre that would fit well into the local community setting. At the same
time, the additional 550 megawatts of capacity could help improve the
security and supply of electricity to meet the growing electricity needs
of downtown Toronto," said OPG's Ron Osborne.

"Our partnership with OPG in the Portlands project fits well with our
strategy to grow our power business," said TransCanada's Hal Kvisle. "We
believe the PEC is currently the lowest cost, most efficient and
environmentally sound opportunity for new fossil fueled power generation
in Ontario."

PEC and Enwave District Energy Limited, a private company owned by the
City of Toronto and OMERS (the Borealis Penco Fund), have signed a
Letter of Intent that could see PEC supply steam to Enwave's district
heating system. "District energy is an environmentally sound approach to
provide for the heating and cooling needs of commercial and
institutional users," said Dennis Fotinos, Enwave CEO. "PEC's energy
would allow us to expand the number of customers we serve in the
downtown core and would position us to serve future needs in Toronto's
developing waterfront."

Ontario power generation is an Ontario based company, whose principal
business is the generation and sale of electricity to customers in
Ontario and to interconnected markets. Our focus is on the risk-managed
production and sale of reliable electricity from our competitive
generation assets. OPG's goal is to be a premier North American energy
company, while operating in a safe, open and environmentally responsible
manner.

TransCanada Energy Ltd. is a wholly-owned subsidiary of TransCanada
PipeLines Ltd., a leading North American energy company focused on
natural gas transmission and power services. TransCanada'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 owns, controls, manages or
is constructing facilities for approximately 2,650 megawatts of power to
meet the needs of more than two million average households. 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.

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For more information:
OPG Media Desk: 416.592.4008/ 1.877.592.4008
TransCanada Glenn Herchak/Hejdi Feick 403-920-7877

Copyright C 2002, Ontario Power Generation Inc.