Canada - Hydro receives strong response to first phase of wind generation RFP

Newfoundland and Labrador Hydro (NLH) announced today that it has received 13 Expressions of Interest in response to its December 2005 Request for Proposals (RFP) for the provision of 25 MW of wind generation to the Island Interconnected System. "It's clear from the number of responses we've received in this first phase of the RFP process, that there is significant interest in wind generation," said VP Business Development Jim Keating. "Over the next number of months, these proponents will work to finalize their feasibility studies and their final submissions. We look forward to seeing those proposals at the end of August." As a part of NLH's new mandate, the company is exploring the addition of cost-effective wind generation into its portfolio. Wind is a clean, renewable alternative that offers many environmental benefits, and has the potential to displace some energy produced from the oil-fired, Holyrood Thermal Generating Station.

"Our phased approach to wind generation will allow us to understand the development opportunities which exist and how they may be incorporated into our isolated island system," noted Keating. "I'm pleased with the response to our RFP, and look forward to the outcome of this open and competitive process. At the end of the day, any successful proponent will have to clearly demonstrate appropriate value and provide a cost-effective source of energy for consumers." Newfoundland and Labrador has a world-class wind resource. Currently, the island system is isolated from the North American grid with existing capacity of 1919 MW provided by approximately 65% hydroelectric and 35% fossil fuel generation. With over 1,100 employees across the province, Newfoundland and Labrador Hydro is the fourth largest power generating utility in Canada and operates one of the world's largest hydro generating plants in Churchill Falls. For more information contact: Dawn Dalley, Manager, Corporate Communication and Shareholder Relations, 709-737-1315