NB Power

NB Power announces closure of Grand Lake generating station, NB Coal Ltd. (09/09/29)

NB 1446

Sept. 29, 2009

FREDERICTON (CNB) - NB Power will close the Grand Lake generating station when its operating licence expires in June 2010. As a result of its only customer ceasing operations, NB Coal Ltd. will close this December.

"These have been strong, reliable assets that have come to the end of their life," said David Hay, president and chief executive officer, NB Power. "NB Power has been a part of the community for more than 75 years, and this decision was very carefully considered.

"The Grand Lake Generating Station is an aging facility, and it is facing many environmental and economic challenges. Due to the nature of coal mined in Minto, pending environmental regulations make it uneconomical to continue operation of NB Coal Ltd., and the Grand Lake generating station beyond its current operating licence. Since 2000, the Grand Lake generating station has been the only customer of NB Coal Ltd. We will, naturally, work with the community during this transition."

Built in 1931, the Grand Lake generating station was NB Power's first thermal plant. It was built to serve Fredericton and the cotton mill in Marysville. The generating station was located on the shores of Grand Lake - a perfect site since it was virtually on top of its fuel supply, the Minto coalfields, and only 48 km (30 miles) from its customers.

09/09/29

MEDIA CONTACT: Heather MacLean, manager, media relations, 506-458-6618, e-mail hemaclean@nbpower.com.

09/09/29