ENMAX Corporation today announced net earnings of $63.2 million in the third quarter of 2004 compared to $50.4 million for the third quarter of 2003. Net earnings for the first nine months of 2004 were $122.6 million compared to net earnings of $121.4 million for the same period in 2003.

The third quarter of 2004 includes the impact of two significant items. In September, ENMAX Energy completed developments to its process of recognizing the value of electricity consumed by customers that has not yet been charged through cycle-billing. The impact is an increase in recognized electricity sales, accounts receivable and third quarter earnings of $42.7 million after tax.

Also included in the third quarter of 2004 is a reduction to net earnings of $22.8 million representing the year-to-date impact of the Alberta Energy and Utilities Board (EUB) decisions relating to ENMAX’s 2004 Distribution Tariff and Regulated Rate Tariff. Net earnings were also reduced by lower margins in the competitive energy business and higher grid charges in the wires business.

“ENMAX achieved strong third quarter results that are following high-level forecasts we published a year ago,” said Bob Nicolay, ENMAX President and Chief Executive Officer. “The business environment continues to experience uncertainty as restructuring and development of key systems progresses. Negative events such as the recent regulatory decisions overturning established Calgary ratemaking practices and tightening margins through competition are offset through the third quarter by refinement of systems that enable more precise revenue recognition. The company will continue its disciplined pursuit of efficiencies and is well positioned to deliver healthy dividends to Calgarians as we continue prudently growing their company.”

ENMAX’s earnings are drawn from two distinct businesses: 44 per cent of ENMAX’s net earnings come from supplying households and small businesses in Calgary in a market that is regulated by the Alberta Energy and Utilities Board (EUB). The deregulated and competitive wholesale, commercial, and industrial markets account for essentially all the remainder of the company’s earnings.

The management’s discussion and analysis and unaudited interim financial statements for the third quarter of 2004, which have been reviewed by our external auditors, are available on ENMAX's website (www.enmax.com) and on SEDAR (www.sedar.com).

ENMAX Corporation, a wholly owned subsidiary of The City of Calgary, provides electricity, natural gas and value-added services to more than 420,000 residential, commercial and industrial customers in Alberta through its subsidiary companies. For more information, please visit our website at enmax.com.