Fort Chicago announces closing of financing for East Windsor Cogeneration Centre


    Trading Symbol: FCE.UN
    Exchange: TSX

    CALGARY, Nov. 2 /CNW/ - Fort Chicago Energy Partners L.P. ("Fort
Chicago") announced that East Windsor Cogeneration LP ("East Windsor") has
completed a private placement of secured debentures due September 29, 2029
(the "Bonds") in the aggregate principal of Cdn $179 million with Canadian
institutional lenders, the proceeds of which will be used to fund the costs
associated with East Windsor's 84-megawatt cogeneration project. The Bonds
shall be secured by first priority security on the assets of East Windsor,
consisting of the East Windsor Cogeneration Centre ("EWCC") and all related
interests, along with limited recourse security provided by the partners of
East Windsor during construction. The Bonds will bear interest at a rate of
6.234%, on a quarterly basis, and be amortized over 20 years commencing after
start-up of the EWCC, which is currently expected to be in the fall of 2009.
The private placement was arranged by TD Securities Inc.
    "We are extremely pleased with this financing as it locks-in an
attractive long term interest rate with payments based on a mortgage style
amortization schedule that is consistent with the long life assets and
predicted stable cash flows of EWCC," commented Mr. Stephen H. White,
President and Chief Executive Officer of Fort Chicago.
    East Windsor has also provided a full notice to proceed to Aecon
Industrial, a division of Aecon Construction Group Inc., for the complete
design, engineering, procurement and construction services for the EWCC
project. East Windsor anticipates that construction of the EWCC project will
commence within the next 30 days. Fort Chicago holds a 50% interest in East
Windsor, with a subsidiary of Pristine Power Inc. of Calgary, Alberta holding
the other 50% interest. The aggregate cost of the EWCC project, including
financing costs incurred during construction of $14.2 million, is estimated to
be $207 million (100 percent).
    As announced in October, 2006, the EWCC project, a proposed 84-megawatt
cogeneration facility to be located in Windsor, Ontario, was awarded a
Combined Heat and Power Contract by the Ontario Power Authority ("OPA"),
pursuant to the OPA's 2006 CHP Request for Proposal process. The project will
provide electrical output to Ontario's IESO administered electricity market,
and will also provide steam to the adjacent powerhouse owned by Ford Motor
Company of Canada.
    Additional information about the EWCC project can be found online at

    About Fort Chicago

    Fort Chicago is a publicly traded limited partnership based in Calgary,
Alberta, that owns and operates energy infrastructure assets across North
America. Its Class A Units are listed on the TSX under the symbol FCE.UN and
have been assigned a stability rating by Dominion Bond Rating Service and
Standard & Poor's of STA-2 (low) and SR-2, respectively. Together with its
affiliates, Fort Chicago presently owns:

    (i)    a 50.0% interest in the Alliance Pipeline, a 3,000 kilometre
           mainline natural gas pipeline, which extends from northeastern
           British Columbia to delivery points near Chicago, Illinois;

    (ii)   an approximate 42.7% interest in Aux Sable and Alliance Canada
           Marketing. Aux Sable operates natural gas liquids extraction,
           fractionation and delivery facilities near Chicago;

    (iii)  a 100% interest in the Alberta Ethane Gathering System, a 1,324
           kilometre ethane pipeline system, which delivers ethane feedstock
           to Alberta's petro-chemical industry; and

    (iv)   a 100% interest in two gas-fired cogeneration power facilities in
           California, a district energy system located in Charlottetown,
           Prince Edward Island and a district energy system located in
           London, Ontario.

    Fort Chicago and its businesses are also actively developing a number of
greenfield investment opportunities that will be a key source of future
growth, including LNG and pipeline facilities on the U.S. west coast, an
Alberta-based ethane extraction facility, an NGL extraction facility capable
of processing off-gas produced by Alberta's oil sands upgraders, two
co-generation power facilities situated in Ontario, repowering and expansion
opportunities at the California power facilities, waste heat power facilities
along the Alliance Pipeline and a Nova Scotia-based underground natural gas
storage facility.

                     Class A Unit Ownership Restrictions

    Fort Chicago is organized in accordance with the terms and conditions of
a limited partnership agreement which provides that no Class A Units may be
transferred to, among other things, a person who is a "non-resident" of
Canada, a person in which an interest would be a "tax shelter investment" or a
partnership which is not a "Canadian partnership" for purposes of the Income
Tax Act (Canada).

    Certain information contained herein relating to Fort Chicago and its
businesses constitutes forward-looking information under applicable securities
laws. All statements, other than statements of historical fact, which address
activities, events or developments that we expect or anticipate may or will
occur in the future, are forward-looking information. Forward-looking
information typically contains statements with words such as "may",
"estimate", "anticipate", "believe", "expect", "plan", "intend", "target",
"project", "forecast" or similar words suggesting future outcomes or outlook.
The following discussion is intended to identify certain factors, although not
necessarily all factors, which could cause future outcomes to differ
materially from those set forth in the forward-looking information. The risks
and uncertainties that may affect the operations, performance, development and
results of our businesses include, but are not limited to, the following
factors: the ability of Fort Chicago to successfully implement its strategic
initiatives and achieve expected benefits; the status, credit risk and
continued existence of contracted customers; the availability and price of
energy commodities; fluctuations in foreign exchange and interest rates; the
regulatory environment; competitive factors in the pipeline, NGL and power
industries; and the prevailing economic conditions in North America. The
reader is cautioned that these factors and risks are difficult to predict and
that the assumptions used in the preparation of such information, although
considered reasonably accurate by Fort Chicago at the time of preparation, may
prove to be incorrect or may not occur. Accordingly, readers are cautioned
that the actual results achieved will vary from the information provided
herein and the variations may be material. Readers are also cautioned that the
foregoing list of factors and risks is not exhaustive. Additional information
on these and other risks, uncertainties and factors that could affect Fort
Chicago's operations or financial results are included in our filings with the
securities commissions or similar authorities in each of the provinces of
Canada, as may be updated from time to time. There is no representation by
Fort Chicago that actual results achieved will be the same in whole or in part
as those set out in the forward-looking information. Furthermore, the
forward-looking statements contained herein are made as of the date hereof,
and Fort Chicago does not undertake any obligation to update publicly or to
revise any forward-looking information, whether as a result of new
information, future events or otherwise. Any forward-looking information
contained herein is expressly qualified by this cautionary statement.

    Certain financial information contained in this news release may not be
standard measures under Generally Accepted Accounting Principles ("GAAP") in
Canada and may not be comparable to similar measures presented by other
entities. These measures are considered to be important measures used by the
investment community and should be used to supplement other performance
measures prepared in accordance with GAAP in Canada. For further information
on non-GAAP financial measures used by Fort Chicago see Management's
Discussion and Analysis, in particular, the section entitled "Non-GAAP
Financial Measures" contained in the annual Management Discussion and
Analysis, filed by Fort Chicago with Canadian securities regulators.

For further information:

For further information: Stephen H. White, President and C.E.O.; Hume D.
Kyle, Vice President, Finance and C.F.O., Fort Chicago Energy Partners L.P.,
Stock Exchange Tower, 2150, 300 Fifth Avenue S.W., Calgary, AB, T2P 3C4,
Phone: (403) 296-0140, Fax: (403) 213-3648,

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