Fort Chicago announces purchase of Colorado Power Facility


    Trading Symbol: FCE.UN
    Exchange: TSX

    CALGARY, July 14 /CNW/ - Fort Chicago Energy Partners L.P. ("Fort
Chicago") announced today that an indirect wholly-owned subsidiary has entered
into purchase agreements with two parties to acquire a 100% interest in the
Brush II Generation Facility ("Brush II"), a nominal 70 megawatt ("MW")
natural gas fired combined cycle power generation facility. The aggregate
purchase price to be paid is approximately US$32 million, including working
capital at closing, and will be financed from existing bank credit facilities.
The acquisition is expected to close during August, subject to usual closing
conditions, including the approval of the U.S. Federal Energy Regulatory
    The Brush II facility is situated in a 280 MW, multi-unit complex in
Brush, Colorado, approximately 90 miles northeast of Denver. The Brush II
facility is fully contracted under two tolling agreements ("TA") with
investment grade off-takers through December 31, 2019. Brush II operates as an
exempt wholesale generator and sells its capacity and output presently under a
TA that expires on September 30, 2009. Commencing on October 1, 2009, the
output will be sold under a 10 year and three month TA. The Brush II facility
is operated by an experienced third party contract operator, which also
operates the other units in the Brush complex.
    Stephen White, President and CEO of Fort Chicago commented "We are
pleased to increase our footprint in the power business in the western United
States with the Brush II acquisition. We see increasing demand for natural
gas-fired generation capacity in this region in the future. While this is a
relatively small acquisition for Fort Chicago, it demonstrates our commitment
to growing this side of our business."

    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. Fort Chicago is
engaged in three principal businesses: a pipeline transportation business
comprised of interests in two pipeline systems, the Alliance Pipeline and the
Alberta Ethane Gathering System; an NGL extraction business which includes a
significant interest in a world-class extraction facility near Chicago; and a
power business with cogeneration facilities in Ontario and California,
district energy systems in Ontario and Prince Edward Island and waste heat
power facilities along the Alliance Pipeline. 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, Alberta-based ethane and NGL extraction
facilities, repowering and expansion opportunities at the California power
facilities 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, but not limited 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.,
Livingston Place, Suite 440, 222 - 3rd Avenue S.W., Calgary, AB, T2P 0B4,
Phone: (403) 296-0140, Fax: (403) 213-3648,

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