COMPANY HISTORY

Columbia Power Corporation (Columbia Power), a Crown corporation wholly owned and controlled by the Province of British Columbia, was established under the Company Act in 1994 to own and administer hydroelectric power assets purchased by the Province in the Columbia Basin.

Columbia Power's primary mandate is to efficiently develop and operate commercially viable, environmentally sound and safe power project investments for the benefit of the Province and the residents of the Columbia Basin. In making power project investments, Columbia Power's goal is to support the employment, economic development and resource management objectives of the Province, within the constraints of a commercial enterprise.

Columbia Power has undertaken power projects through joint ventures with subsidiaries of Columbia Basin Trust (CBT) and manages all of the joint ventures. Columbia Power focuses on asset management activities while engaging private-sector firms to provide construction, plant operation and specialist consulting services. Through its joint ventures, Columbia Power is one of the larger producers of electricity in British Columbia.

The Brilliant Dam purchase in 1996 was the first investment of the partners, who embarked upon a $130 million rehabilitation and life extension project. In 1999, the partners began construction on the 185MW Arrow Lakes Generating Station, which began commercial operation in 2002. The second major construction project, the Brilliant Expansion, began in 2003, with commercial operation commencing in 2007.

In 2010, Columbia Power and CBT signed an agreement with Fortis Inc. for the construction of the 335MW Waneta Expansion Project. Work on the project began in the fall of 2010 and is scheduled to last four and a half years. The partnership structure sees Fortis Inc. with a 51 percent share, Columbia Power with a 32.5 percent share and CBT with a 16.5 percent share. Columbia Power, acting as the owner's representative, will manage the construction of the project.

COLUMBIA POWER CORPORATION AND THE COLUMBIA BASIN TRUST

Columbia Basin Trust (CBT) is an equal partner in three joint ventures (Arrow Lakes Generating Station, Brilliant Dam and Generating Station, and Brilliant Expansion) with Columbia Power Corporation (Columbia Power), and is a partner, along with Columbia Power and Fortis Inc., on the construction of the Waneta Expansion Project.

Columbia Power and CBT contribute to the economic, environmental and social well-being of the Columbia Basin through the development of power projects in the region. These investments are creating new jobs for local workers, inject millions of dollars into the local economy through the purchase of goods and services, and provide income to the Province and CBT.

Fifty percent of the net profits from power sales at the Arrow Lakes Generating Station, Brilliant Dam, and Brilliant Expansion Project go to CBT to deliver economic, social and environmental benefits to the residents of the Columbia Basin. To learn more about other CBT investments, programs and initiatives, visit www.cbt.org or call 1.800.505.8998.

For more information contact us.