July 28, 2005 - Edmonton - EPCOR Utilities Inc. today released its quarterly results for the period ended June 30, 2005.

"This quarter is the first full quarter that reflects our interest in the results of operations in the recently commissioned Genesee Phase 3 power plant," said EPCOR President and CEO Don Lowry. "During the second quarter, EPCOR announced one of the most significant developments in its history with the planned acquisition of TransCanada Corporation's 30.6 per cent interest in TransCanada Power, L.P. We continue to look forward to the close of the transaction, expected in the third quarter of 2005, subject to regulatory approvals."

Highlights of EPCOR's financial performance included:

• Net income was $56.1 million on revenues of $610.1 million for the three months ended June 30, 2005 compared with $37.9 million on revenues of $617.2 million for the same period in the previous year. The increase in net income was due to mark-to-market gains on energy supply contracts and a full quarter's results of operations for Genesee Phase 3 which commenced commercial operations on March 1, 2005 partly offset by decreased Alberta electricity margins. The 2005 results were also higher since there were no losses on asset disposal whereas the 2004 second quarter results included the after-tax loss on disposal of a 49.85 per cent interest in the Frederickson generation plant.
• Net income was $64.4 million on revenues of $1,250.8 million for the six months ended June 30, 2005 compared with $104.1 million on revenues of $1,331.7 million for the same period in the previous year. The decrease in net income was primarily due to the 2005 first quarter reduction related to the settlement of a payment in lieu of income tax issue with Alberta Revenue, Tax and Administration, acting as agent for Alberta's Balancing Pool and because there were no significant increases to estimates of retained availability incentives as there were in 2004.
• Investment in capital projects for the three months ended June 30, 2005 was $70.1 million compared with $50.0 million for the same period in the previous year. Investment in capital projects for the six months ended June 30, 2005 was $133.2 million compared with $88.8 million for the same period in the previous year.
• Cash flow from operating activities was $68.3 million for the three months ended June 30, 2005 compared with $76.4 million for the same period in the previous year. Cash flow from operating activities was $189.3 million for the six months ended June 30, 2005 compared with $247.0 million for the same period in the previous year. Included in the 2004 cash flow from operating activities was the collection of deferred amounts receivable which have been substantially collected with no equivalent collection in 2005. In addition, the first two quarters of 2004 had higher cash inflows from non-cash operating working capital due to the timing of receipts and payments.

Management's discussion and analysis (MD&A) of the quarterly results are shown below. The MD&A and the interim financial statement are available on EPCOR's web-site, and will be available at SEDAR.

EPCOR Utilities Inc. is one of Canada's top providers of energy and energy-related services and products. Drawing on over 100 years of experience, EPCOR owns and operates power plants, electrical transmission and distribution networks, builds and operates water and wastewater treatment facilities and infrastructure and provides power and water solutions to customers in Alberta, British Columbia, Ontario and the U.S. Pacific Northwest. With over $4 billion in assets, EPCOR is headquartered in Edmonton, Alberta.

For more information, please contact:
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EPCOR Utilities Inc.
Interim Management Discussion and Analysis
June 30, 2005

This management's discussion and analysis (MD&A), dated July 28, 2005 should be read in conjunction with the unaudited interim consolidated financial statements of EPCOR Utilities Inc. (the Company or EPCOR) for the three and six months ended June 30, 2005 and 2004 and in conjunction with the audited financial statements and MD&A for the year ended December 31, 2004. In accordance with its terms of reference, the Audit Committee of the Company's Board of Directors reviews the contents of the MD&A and recommends its approval by the Board of Directors. The Board of Directors has approved this MD&A.

Forward looking statements
Certain information in this MD&A is forward looking and related to anticipated financial performance, events and strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target", "expect" or similar words suggest future outcomes. By their nature, certain future events are subject to significant risks and uncertainties, which could cause EPCOR's actual results and experience to be materially different than the anticipated results. Such risks and uncertainties include, but are not limited to, operating performance, commodity prices and volumes, load settlement, regulatory and government decisions, weather and economic conditions, competitive pressures, construction risks, obtaining financing and the performance of partners, contractors and suppliers.

Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. EPCOR disclaims any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.

Consolidated results of operations
Net income for the three months ended June 30, 2005 was $56.1 million compared with net income of $37.9 million for the same period in 2004.

• Net income was higher by approximately $11.0 million after income taxes since there was no comparable loss on asset disposal in 2005. In 2004, EPCOR incurred a loss of $11.0 million on the disposal of a 49.85 per cent interest in the Frederickson power plant.
• Net income increased by approximately $8.0 million after income taxes due to the recognition of unrealized increases in the fair values of energy supply contracts that were previously deferred under hedge accounting. During the quarter, the Company sold Ontario mid- and mass-market sales contracts. As a result, the underlying energy supply contracts were no longer eligible for hedge accounting and the resulting fair value adjustments (mark-to-market gains) were recorded in income.
• Net income increased by approximately $7.0 million after financing expenses and income taxes, representing EPCOR's 50 per cent interest, from the sale of electricity generated by the Genesee Phase 3 power plant which commenced commercial operations on March 1, 2005.
• Net income decreased by approximately $8.0 million after income taxes as Alberta electricity margins decreased due to higher electricity portfolio supply costs and lower sales volumes resulting from the disposal of competitive mass-market electricity and natural gas contracts in the fourth quarter of 2004.
• Net income increased by approximately $4.0 million after income taxes from the sale of electricity generated by the Genesee Phase 3 power plant which commenced commercial operations on March 1, 2005.

Net income for the six-month period was $64.4 million while net income for the same period in 2004 was $104.1 million.

• Net income decreased by $39.1 million due to a charge recorded to amounts in lieu of income taxes resulting from the Company's settlement with Alberta Revenue, Tax and Administration (Alberta Revenue), as agent for Alberta's Balancing Pool with respect to the value of goodwill for purposes of the Payment in Lieu of Income Taxes (PILOT) Regulation.
• Net income was lower since there was no significant adjustment to estimates of retained availability incentives as there were in 2004. In the first quarter of 2004, EPCOR increased its estimates of retained availability incentives on the Company's generating plants operating under Power Purchase Arrangements (PPAs) resulting in a net income increase of approximately $25.0 million after income taxes.
• Net income decreased by approximately $8.0 million after income taxes as Alberta electricity margins decreased due to higher electricity portfolio supply costs and lower sales volumes resulting from the disposal of competitive mass-market electricity and natural gas contracts in the fourth quarter of 2004.
• Net income increased by approximately $12.0 million after financing expenses and income taxes from the sale of electricity generated by the Genesee Phase 3 power plant which commenced commercial operations on March 1, 2005.
• Net income increased by approximately $8.0 million after income taxes due to the recognition of unrealized increases in fair values of energy supply contracts that were previously deferred under hedge accounting. During the second quarter, the Company sold Ontario mid- and mass-market sales contracts. As a result, the underlying energy supply contracts were no longer eligible for hedge accounting and the resulting fair value adjustments (mark-to-market gains) were recorded in income.
• Net income was higher by approximately $11.0 million after income taxes since there was no comparable loss on asset disposal in 2005. In 2004, EPCOR incurred a loss of $11.0 million on the sale of a 49.85 per cent interest in the Frederickson power plant incurred in the second quarter of 2004.

Revenues for the second quarter of 2005 were $610.1 million compared with $617.2 million in the same period of the prior year.

• Revenues were lower due to decreased retail electricity sales driven by the 2004 fourth quarter disposal of Alberta mass-market electricity contracts partly offset by the impact of increased revenues from Genesee Phase 3 as it commenced commercial operations on March 1, 2005.

Revenues for the six months ended June 30, 2005 were $1,250.8 million compared with $1,331.7 million for the same period of the prior year.

• Revenues declined primarily due to lower generation availability incentive income and, to a lesser extent, decreased retail electricity sales partly offset by increased revenues from Genesee Phase 3 as it commenced commercial operations on March 1, 2005.

Significant events
On April 1, 2005, Alberta's Balancing Pool, as PPA holder, advised the Company of its decision to terminate the Clover Bar PPA, effective October 1, 2005. In accordance with the terms of the PPA, EPCOR is entitled to receive a termination payment, estimated to be in the range of $80.0 million to $90.0 million. The net book value of the Clover Bar generation assets at the termination date will be less than the termination payment. The termination transaction and any related adjustments to net book value of the Clover Bar generation assets and other accounts will be recorded in the third quarter. The Company is currently evaluating its options with respect to the future operations of its Clover Bar generating station.

On May 17, 2005, EPCOR and TransCanada Corporation (TransCanada) announced that they had entered into an agreement whereby EPCOR will acquire TransCanada's approximately 30.6 per cent interest in TransCanada Power, L.P. (the Partnership) for a purchase price of $529.0 million. In connection therewith, the Company has issued a letter of credit to TransCanada in the amount of $26.5 million that is refundable on close of the transaction. The transaction, subject to regulatory approvals, is expected to close in the third quarter at which time the Partnership will be renamed as EPCOR Power, L.P. EPCOR will acquire approximately 14.5 million units of the Partnership; 100 per cent ownership of the General Partner of the Partnership; and all TransCanada's interests in the management and operations agreements governing the ongoing operation of the Partnership's power generation assets. The Partnership owns a portfolio of 11 power generation assets in Canada and the United States, with a total generating capacity of 744 megawatts. The generation plants include natural gas, small-scale hydro and bio-mass facilities. The Company is currently working on transition activities and plans which involve several areas within EPCOR. TransCanada will continue to provide operations and support services to EPCOR during the transition period following closing to facilitate an orderly transfer of the management functions for the Partnership.

On June 8, 2005, the Government of Alberta approved an Electricity Policy Framework which outlines a new 5-year Regulated Rate Option (RRO) for residential, farm and small commercial Alberta electricity consumers. Starting on July 1, 2006, these consumers will be gradually transitioned to the new RRO where the electricity rates will be determined using a combination of long-term and monthly forward hedges. At the end of the transition period in 2010, the new RRO will be similar to the design of the current natural gas default rate, which is based on monthly forward prices. Similar to the current Regulated Retail Tariff, the new RRO is the default option for customers who have not selected an electricity provider.

Segment results
Generation
Generation's net income for the quarter was $17.3 million compared with net income of $0.3 million for the same quarter in 2004.

• Net income increased since there was no loss on disposal recorded in 2005 as there was in 2004. In the second quarter of 2004, the Company recorded a loss on the disposal of a 49.85 per cent interest in the Frederickson power plant.
• Net income increased due to the sale of electricity generated by the Genesee Phase 3 power plant which commenced commercial operations on March 1, 2005.

Generation's loss for the six months ended June 30, 2005 was $5.3 million compared with net income of $33.2 million for the same period in the prior year.

• Net income decreased due to the charge recorded in the first quarter for the amounts in lieu of income taxes adjustment as discussed below.
• Net income decreased since there were no revised estimates relating to PPA availability incentives as there were in the first quarter of 2004 as discussed below.
• Net income increased since there was no loss on disposal recorded in 2005 as there was in 2004. In 2004, the Company recorded a loss on disposal of a 49.85 per cent interest in the Frederickson power plant.
• Net income increased due to the sale of electricity generated by the Genesee Phase 3 power plant which commenced commercial operations on March 1, 2005.

On January 1, 2001, the PILOT Regulation under the Electric Utilities Act (Alberta) came into effect requiring certain of the Company's operations, which are exempt from taxation, to pay amounts in lieu of income taxes in substantially the same manner as if they were taxable under federal and provincial tax laws. Accordingly, under the PILOT Regulation, on January 1, 2001, these operations were deemed to have disposed of and re-acquired their assets at fair market value. The Company determined that the resulting tax bases of these assets were greater than their book values giving rise to a future tax benefit associated with the additional deductions available for amounts in lieu of income tax purposes. Under generally accepted accounting principles, the future tax benefit associated with the additional tax deductions available was recognized as a future tax asset in the balance sheet. Since the initial recognition of the future tax was the result of imposed legislation, the corresponding adjustment was recorded as an adjustment to retained earnings in 2001.

Alberta Revenue, as agent for Alberta's Balancing Pool, is responsible for assessing the Company's amounts in lieu of income tax returns filed under the PILOT Regulation. In July 2003, Alberta Revenue notified the Company that it was their view that the value of goodwill for amounts in lieu of income tax purposes for the Company's generation assets operating under PPAs, as determined by the Company at the date that the Company first became subject to the PILOT Regulation, was overstated. A value of goodwill for PILOT Regulation purposes lower than the amount established by the Company on January 1, 2001 results in decreased deductions available in determining amounts in lieu of income taxes. All else being equal, this creates additional amounts in lieu of income taxes payable from 2001 to date and lower future amounts in lieu of income tax assets associated with such deductions. At January 1, 2001, the Company estimated the balance of future amounts in lieu of income tax assets associated with the goodwill to be $112.9 million, based on an estimated fair market value of goodwill of $400.0 million. The value of goodwill was settled between the Company and Alberta Revenue for PILOT Regulation purposes at $250.0 million. At March 31, 2005, this resulted in an increase in current amounts in lieu of income taxes payable including related interest of $13.0 million and a decrease in future amounts in lieu of income tax asset of $26.1 million resulting in a one-time charge of $39.1 million to amounts in lieu of income taxes expense and interest expense. Similar reductions are not expected in the future.

Net income also decreased since there were no revised estimates relating to PPA availability incentives as there were in the first quarter of 2004. The Company records the electricity revenue from generating units operating under PPAs at the long-term price of power embedded in the PPAs, including expected incentives and penalties for operating above or below specified availability targets set out in the PPA. Under this approach, the Company defers incentives that are not expected to be sustained over the full-term of the PPA, on a plant-by-plant basis. The degree to which incentives are recognized or deferred for each plant will change due to revisions to the long-term outlook of plant performance based on historical data, planned maintenance, reliability and plant availability and due to revisions in the estimated long-term price embedded in the PPA. In the first quarter of 2004, the Company revised its estimated plant availability over the term of the PPAs.

Revenues were $151.5 million for the second quarter of 2005 compared with $123.2 million for the same period in 2004.

• The increase in revenues is primarily due to the sale of electricity generated by Genesee Phase 3 which commenced commercial operations on March 1, 2005.

Revenues for the six-month period were $284.4 million compared with $288.9 million for the same period in 2004.

• The decrease in revenues is due to the revised estimates relating to PPA availability incentives that were recorded in 2004 and not repeated in 2005, partly offset by the 2005 revenues from sale of electricity generated by Genesee Phase 3.

Operating expenses excluding depreciation, amortization and asset retirement accretion were $72.2 million and $131.3 million for the three-month and six-month periods ended June 30, 2005 compared with $67.7 million and $123.6 million for the same periods in 2004.

• The increases in operating expenses excluding depreciation, amortization and asset retirement accretion were primarily due to the costs related to the generation of electricity at Genesee Phase 3.

Income taxes and amounts in lieu of income taxes were $9.1 million for the quarter and $57.3 million for the six-month period ended June 30, 2005 compared with $5.5 million and $31.6 million for the same periods in the prior year.

• Income taxes and amounts in lieu of income taxes increased on a quarter-over-quarter basis primarily due to the impact of the increased income from Genesee Phase 3.
• Income taxes increased on a year-over-year basis due to the impact of the PILOT settlement and the net increase in income.

Distribution and Transmission
Distribution and Transmission's net income for the three months ended June 30, 2005 was $4.3 million compared with $5.8 million for the corresponding period in 2004.

• Net income was lower for the quarter than the comparative period in 2004 as a result of higher operations expenses consistent with volume growth, higher property taxes resulting from increased assessment values and the margin impact of lower rates in 2005 compared with 2004 (as governed by regulatory approvals) partly offset by increased volumes due to growth within Distribution and Transmission's service area.

Distribution and Transmission's net income for the six months ended June 30, 2005 was $9.1 million compared with $11.0 million for the corresponding period in 2004.

• Net income for the two quarters was lower than the previous year's two quarters for reasons consistent with the quarter-over-quarter changes.

Revenues were $62.4 million for the quarter compared with $57.3 million for the same period in 2004 and were $117.6 million for the two quarters compared to $114.8 million for the same period in 2004.

• The increases in revenues represent increased volumes due to customer growth partly offset by decreased distribution and transmission rates

Operating expenses excluding depreciation, amortization and asset retirement accretion were $46.5 million for the quarter compared with $40.4 million for the corresponding period in 2004 and $85.2 million for the six-month period ended June 30, 2005 compared to $81.6 million for the same period in 2004.

• Operating costs excluding depreciation, amortization and asset retirement accretion increased as operations, maintenance and administration expenses increased consistent with customer growth, as franchise fees and property taxes increased and as energy purchase costs increased based on the combined impact of increased volumes and decreased rates.

Energy Services
Energy Services' net income for the three months ended June 30, 2005 was $13.9 million and $11.2 million for the three months ended June 30, 2004.

• Net income for the quarter increased due to the recognition of unrealized increases in the fair values of energy supply contracts that were previously deferred under hedge accounting. During the quarter, the Company sold Ontario mid- and mass-market sales contracts. As a result, the underlying energy supply contracts were no longer eligible for hedge accounting and the resulting fair value adjustments (mark-to-market gains) were recorded in income.
• Net income for the quarter was higher than the previous year's quarter due to lower load, settlement and billing adjustments incurred in 2005 compared with 2004.
• Net income decreased due to lower Alberta electricity margins due to higher electricity portfolio costs caused by higher wholesale prices.

Net income for the six-month period ended June 30, 2005 was $20.4 million and net income for the six-month period ended June 30, 2004 was $17.1 million.

• Net income for the six months was higher than for the same period in the previous year for reasons consistent with the quarter-over-quarter changes.

Total revenues for the three- and six-month periods were $421.5 million and $892.9 million respectively compared with $453.6 million and $971.4 million for the corresponding periods in 2004.

• The decrease in revenues was due to lower wholesale electricity prices in 2005 compared with 2004 plus the impact of lower sales volumes resulting from the disposal of competitive mass-market electricity and natural gas contracts in the fourth quarter of 2004.

Operating expenses excluding depreciation, amortization and asset retirement accretion were $376.1 million for the quarter compared with $411.0 million for the comparative quarter in 2004 and $814.8 million for the six-month period ended June 30, 2005 compared with $899.6 million for the same period in 2004.

• Consistent with the decrease in revenues, the decrease in operating expenses excluding depreciation, amortization and asset retirement accretion was due to lower wholesale electricity prices in 2005 compared with 2004 plus the impact of lower energy volumes resulting from the disposal of competitive mass-market electricity and natural gas contracts in the fourth quarter of 2004.

Water Services
Water Services' net income was $3.7 million for the quarter ended June 30, 2005 and $7.0 million for the quarter ended June 30, 2004.

• Net income decreased as water treatment costs increased as a result of heavier rainfall and poorer raw water quality consistent with the spring run-off conditions experienced this year.

Net income for the two quarters ended June 30, 2005 was $7.8 million compared with $12.0 million for the same period in 2004.

• Net income declined for the same reasons as the current quarter.

Total revenues for the quarter ended June 30, 2005 were $42.6 million compared with $34.0 million for the corresponding period in 2004 and for the six months were $76.4 million compared with $64.4 million for the same period in 2004.

• Revenues for both the three-month and six-month periods increased due to increased commercial services activity in British Columbia including the Sooke and Britannia Mine construction projects.

Operating expenses excluding depreciation, amortization and asset retirement accretion increased to $30.1 million in the second quarter of 2005 compared with $19.0 million for the second quarter of 2004 and to $51.6 million for the six months in 2005 compared with $36.6 million for the same period in 2004.

• Operating expenses excluding depreciation, amortization and asset retirement accretion for both the three-month and six-month periods increased due to higher water treatment costs and higher costs related to commercial services projects and activities.

Consolidated balance sheets

Liquidity and capital resources

The Company plans to draw down its existing cash balances and use existing debt facilities to fund the $529.0 million purchase price for TransCanada Power, L.P. and fund the Company's ongoing capital expenditures.

New accounting standards in 2005
Consistent with the future accounting changes as described in the Company's most recent annual MD&A and new changes since the previous year-end, the Company has adopted accounting policies in accordance with the following new accounting standards:

• Consolidation of variable interest entities
  The Company has identified and evaluated its interests which potentially would be subject to the provisions of the new accounting standard for the consolidation of variable interest entities. The Company has concluded that the impact of this new standard is not material to the consolidated financial statements.
• Determining whether an arrangement contains a lease
  In December 2004, the Emerging Issues Committee of the Canadian Institute of Chartered Accountants (CICA) reached a consensus that is intended to clarify the requirements for identifying whether a commercial arrangement should be accounted for as a lease at its inception. This consensus applies to arrangements agreed to, modified or acquired in business combinations on or after January 1, 2005. As of January 1, 2005, EPCOR entered into a new agreement for the operation of its Rossdale generation plant with Alberta Electricity System Operator (AESO). This agreement provides ongoing system reliability for The City of Edmonton and back-up generation for the Province of Alberta until December 31, 2008 unless the agreement is terminated earlier by AESO. The agreement with AESO has been accounted for as a lease in accordance with the CICA consensus.
• Disclosures by entities subject to rate regulation
  Effective for its 2005 annual financial statements, EPCOR will comply with the requirements of Accounting Guideline 19 - Disclosures by Entities Subject to Rate Regulation as issued by the CICA in May 2005. This guideline specifies information about rate-regulated entities that is required to be disclosed in an entity's financial statements. EPCOR's rate-regulated entities include Distribution and Transmission and certain operations within Energy Services and Water Services.

Risk management
This section should be read in conjunction with the Risk Management section of the most recent annual MD&A. The Company faces a number of risks including commodity price and volume risk, credit risk, operational risk, environmental risk, weather risk, regulatory and government risk and foreign exchange risk. The Company employs active programs to manage these risks.

The change to the new electricity pricing model as an option for residential, farm and small commercial customers (see Significant events) may impact EPCOR's volume of electricity sales, as well as electricity margins, to its customers. EPCOR currently provides approximately 55 per cent of the Regulated Retail Tariff load within the Province of Alberta. The future financial impact to EPCOR cannot be determined at this time.

The Company and approximately 450 other employers, participating in certain Alberta public pension plans including the Local Authorities Pension Plan, have been named in a $1.25 billion class action lawsuit regarding pension benefits. The Company's opinion is that this lawsuit is without merit. The outcome of this matter is not determinable at this time, and the Company's potential loss, if any, cannot be estimated.

There have been no other material changes to the risk profile or risk management strategies of the Company as described in the most recent annual Management's Discussion and Analysis for 2004.

Outlook
Earnings for the next two quarters of 2005 are expected to be relatively consistent with the first two quarters except for the impact of the amounts in lieu of income tax settlement and the impact of the termination of the Clover Bar PPA.

Termination of the Clover Bar PPA is effective October 1, 2005, at which time EPCOR is entitled to receive a termination payment ranging between $80.0 and $90.0 million. The net book value of the Clover Bar generation assets at the termination date will be less than the termination payment. The transaction and any related adjustments to net book value of the Clover Bar generation assets and other accounts will be recorded in the third quarter. The Company is currently evaluating its options with respect to the future operations of its Clover Bar generating station.

The Company expects to pursue further generation development projects in connection with its second quarter $6.0 million acquisition of Port Albert Wind Farms Ltd. The assets acquired consist primarily of lease rights to land where further wind-powered generation could potentially be developed, subject to government approvals. The Company intends to use these assets in support of bids under Ontario's Renewable Energy Supply process. The Company will also be integrating the water services operations of White Rock Utilities which was purchased for $9.5 million in the second quarter of 2005.

Summary of quarterly revenues and net income

Events for 2005, 2004 and 2003 quarters that have significantly impacted net income from continuing operations and net income and the comparability between quarters are:

• June 30, 2005 second quarter results include the unrealized mark-to-market gains on energy supply contracts associated with Ontario electricity sales contracts that were sold during the quarter. These gains had previously been deferred in accordance with hedge accounting and were approximately $8.0 million after income taxes.
• June 30, 2005 second quarter results include a full quarter's results of operations for Genesee Phase 3 from its start-up date of March 1, 2005 of approximately $7.0 million after financing expenses and income taxes.
• June 30, 2005 second quarter results include decreased Alberta electricity margins of approximately $8.0 million after income taxes.
• March 31, 2005 first quarter results include the adjustment of amounts in lieu of income taxes as a result of the revised goodwill value for PILOT Regulation purposes of $39.1 million.
• December 31, 2004 fourth quarter results include the gain on the sale of Alberta competitive mass-market electricity and natural gas contracts of approximately $6.0 million after income taxes.
• June 30, 2004 second quarter results include the after-tax loss on disposal of a 49.85 per cent interest in the Frederickson generation plant of approximately $11.0 million after income taxes.
• March 31, 2004 first quarter results include the income increase due to the revised estimates for availability incentive income of approximately $25.0 million after income taxes.
• December 31, 2003 fourth quarter income from discontinued operations includes the gain on disposal of Union Energy of $279.7 million after income taxes.
• December 31, 2003 fourth quarter net income from continuing operations include income decreases of approximately $16.0 million due to higher load, settlement and billing adjustments as well as higher bad debt expenses.

Additional information
Additional information relating to EPCOR including the Company's 2004 Annual Information Form (AIF) is available on SEDAR.

Note: Clicking on the SEDAR links will launch a new web browser window and open the documents on the SEDAR website, a separate, third-party website outside of EPCOR for which EPCOR accepts no responsibility or liability.  Please refer to EPCOR's Terms of Use for more information on third-party website links.