global tv

Enmax, Fording To Look Into Coal-Fired Generator

Companies Sign Letter Of Intent For Brooks-Area Power Plant

CALGARY, Posted 2:00 p.m. MST December 21, 2000 -- Calgary power corporation Enmax has signed a letter of intent with Fording Coal to see if a coal-fired electricity generator in Brooks is feasible.

"It's no secret that Alberta in general -- and southern Alberta in particular -- needs more power to meet growing demand," said Enmax president and CEO Bob Nicolay.

"A plant in the Brooks area would ease the need for north-south transmission system upgrades that could cost hundreds of millions of dollars.

"The plant would provide balance to the... electric system, which is served by plants located largely in the northern portion of the province."

Enmax and Fording are looking into the building of a 400-megawatt plant near Brooks, about 140 kilometres southeast of Calgary. The project would use coal from a mine developed by Fording to produce electricity for Enmax customers.

Once the companies agree on commercial terms for the project, work will begin immediately to secure all regulatory approvals, including an environmental impact assessment and public consultations.

"The Brooks coal deposit is ideally located in southern Alberta to provide economic electricity in response to current critical shortages," said Fording president and CEO Jim Gardiner. "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 Corp. is a wholly owned subsidiary of the City of Calgary, providing electricity and related services to 325,000 residential, commercial and industrial customers in Calgary and region. Its mandate will expand to Lethbridge, Red Deer and other Alberta communities in January.

Calgary-based Fording Coal is Canada's largest export-coal producer, with 32 years in the business and three export-coal mines in B.C., two thermal-coal mines in Alberta and an operation mining oil-sand overburden near Ft. McMurray. It is a wholly owned subsidiary of Canadian Pacific.

-- Rachel Gibson (rgibson@hotmail.com), December 21, 2000