Sale of H.R. Milner

The 144 megawatt (MW) coal-fired H.R. Milner Generating Station located 20 km north of Grande Cache, Alta., is being offered for sale on behalf of Alberta consumers as part of the province's electric industry restructuring.

Originally, the electricity capacity associated with this station was to have been offered to the open marketplace in the Government of Alberta's August 2000 sale of Power Purchase Arrangements (PPAs). The PPAs transferred the generation rights from formerly regulated stations built in Alberta before 1995 to a number of marketplace participants to promote the development of competition. H.R. Milner was withdrawn from the auction due to coal supply uncertainties.

The Balancing Pool in conjunction with consumer groups assumed management of the PPA associated with the H.R. Milner station. The PPA has since been terminated and a Sale Committee consisting of the operator ATCO Power Ltd., Alberta consumers and the Balancing Pool is overseeing the sale. Macquarie North America Ltd. has been appointed as financial advisor to the committee to manage the marketing process.

The Committee expects to complete the sale by the last quarter of 2001.