Our Generation Portfolio and Goals

ENMAX is preparing for a shift away from the use of conventional coal sources of power generation to natural gas-fired and renewable sources of power generation. We believe this shift will help encourage an energy future for Albertans that is lower in greenhouse gas emissions and evokes precautionary actions towards the issue of climate change, which support alternative energy solutions.

Although ENMAX is working towards developing new and less greenhouse gas (GHG)-intensive sources of power generation, most of the power currently supplied still comes from conventional coal-fired plants. There are two coal-fired generating stations that ENMAX Energy Corporation's businesses do not own but are entitled to dispatch the energy supplied from these plants, forming a large part of ENMAX's electricity portfolio. These plants are Battle River, east of Red Deer, Alberta and Keephills, near Edmonton, Alberta. These contract-like instruments are called Power Purchase Arrangements (PPAs).

In addition to these coal plants, ENMAX Energy owns two natural gas-fired generating plants, the Calgary Energy Centre, near Balzac, Alberta and the Crossfield Energy Centre near Crossfield, Alberta. Renewable forms of energy production also play a role in ENMAX Energy's overall power portfolio. ENMAX Energy owns two wind farms in southern Alberta, near Taber and Pincher Creek; and also owns 50% of the McBride Lake wind farm and contracts 100% of the wind power output from this facility. Our B.C. operations include one small low-impact run-of-river plant, another two run-of-river facilities that will be commissioned in 2010 and two energy recovery generation facilities. In 2009, we announced our intention to sell our British Columbia business interests.

The following table summarizes ENMAX Energy's electricity generation portfolio as of January 1, 2010.

ENMAX Energy Electricity Generation Portfolio

Note: ENMAX Energy purchases natural gas supplies and some power supply from the Alberta market. Assets in British Columbia are developed under long-term agreements through which power is sold to BC Hydro.

ENMAX Energy's power supply portfolio by source, including joint ventures and PPAs is depicted in the pie chart below:

Net Generation by Source (Gigawatt hours)

ENMAX sees strong potential in the role natural gas will play in power generation in the coming years. Our intent is to gradually grow the gas-fired generation capacity of our portfolio so that gas figures more prominently as a source fuel. Natural gas-fired generating facilities can be built cost-effectively and located close to demand, thereby reducing transmission infrastructure requirements. In addition, natural gas generates less than half of the GHG emissions associated with conventional coal-fired generating facilities and does not emit other substances such as mercury or sulphur dioxide.

ENMAX gas-fired plants currently under development include the Shepard Energy Centre, with a proposed capacity of 800 MW and the Bonnybrook Energy Centre, with a proposed 165 MW capacity. The Calgary Downtown District Energy Centre is a multi-phase project that will provide heating for up to 10 million square feet of new and existing downtown buildings through a network of underground insulated pipes. It began operating in 2010.

Smart Grid and Demand Side Management
In 2009, ENMAX created the Smart Grid Technologies business group, which is responsible for developing and commercializing our organization's distributed generation plans, smart meters (advanced metering infrastructure), the introduction of electric cars in the Alberta market and related smart grid technologies. Smart meters are a critical component and enabling strategy for the array of home-based electricity generation technologies ENMAX is advancing.

Throughout 2009, the Smart Grid business group advanced several pilot projects using smart meters to enable the use of home-based micro-generation products such as solar photo-voltaic panels, solar hot water systems, micro-wind turbines and electric cars.