On March 21, the Ontario government announced it will "lead the way in using clean, renewable electricity by setting a standard price" for small projects feeding into the provincial grid.

The Standard Offer Program will set a fixed price of 11 cents per kilowatt-hour for wind, biomass or small hydroelectric and 42 cents per kilowatt-hour for solar power.

DSEA chairman Michael Angemeer says the Government's announcement provides small businesses a unique opportunity. Durham Region, he adds, can provide the conditions for those businesses to thrive.

"Durham provides an ideal home base for small manufacturers and generators through the synergies created within the current energy cluster," Mr. Angemeer says. "In Durham Region, there is a symbiotic relationship built on a thriving energy industry, progressive local government and energy-focused research and training at the University of Ontario Institute of Technology. UOIT is the first Canadian university with a school dedicated to energy systems and nuclear engineering."

With its historic links to Ontario's electricity production, Durham offers the physical infrastructure and the human resources to support fledgling projects.

"The energy industry is at home in Durham Region," says Mr. Angemeer. "We have supportive local government and a supportive community. Through DSEA we have pooled the strengths of the private, public and education sectors to create a support network for businesses looking to create innovative solutions to the province's energy challenges."

Statement by Myron Ebell, Director of Energy Policy, Competitive Enterprise Institute on opening the Arctic National Wildlife Refuge to Energy Exploration

CEI congratulates the Senate on its passage of yesterday’s budget resolution containing provisions to open limited areas of the Arctic National Wildlife Refuge to oil and gas exploration. In order to realize the benefits of the Senate’s move, however, the House of Representatives must act quickly to adopt the same provisions.

The ANWR authorization in the current budget resolution is one of the key policies to address responsibly the nation’s long term energy needs. The American people are looking to Congress for leadership in adopting affordable energy policies. Now is the time to act.

The ANWR provisions were passed in both the House and Senate last year, but were derailed from final approval by an obstructionist minority unable to offer any viable alternatives. We hope that the House leadership will now be determined to overcome that obstructionist minority and pass legislation to open ANWR.

CEI is a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited government. For more information about CEI, please visit our website at www.cei.org.

"Teaming between organizations like the St. Joseph's Health Care London and Honeywell make it possible to make great strides in energy efficiency in the healthcare environment where dollars are scarce," said Love. "These upgrades are going to create a more comfortable environment, help protect the environment and, of course, save money."

The energy management/facility renewal project received funding from Natural Resources Canada's Office of Energy Efficiency and Union Gas totaling over $80,000.

Delivering a Certificate of Recognition, Love said, "The Conservation Bureau is pleased to recognize the efforts of St. Joseph's Parkwood Hospital to improve the healthcare environment for both patients and staff. The upgrades that have occurred throughout this project will ensure that more healthcare dollars will go to benefit patients, and not to pay utility bills."

The renewal initiative of Parkwood hospital is a good template for other Ontario healthcare facilities. Addressing much needed facility improvements through a guaranteed approach makes sense.

The solutions implemented to achieve the savings include: ventilation improvements through zonal air control, thermal blanket for the therapeutic pool, electric light retrofitting and upgrades, and enhancements to the centralized control system solution.

Ontario is at a turning point: The province must decide whether to stick with the tried-and-failed model of a handful of high cost, high risk nuclear plants feeding ever increasing (and highly subsidized) electricity consumption or if it will pursue a bold new direction that focuses on increasing efficiency and productivity to make the province an energy leader for the next century.

Make sure you have an officially recorded say on which direction the province should choose and encourage your friends and family to speak out as well. Visit www.gocleanandgreen.org today.

Following a 10.2% rise between December 2004 and December 2005, the energy index rose 15.3% between January 2005 and January 2006.

Although all components contributed to the increase in the energy index in January 2006, the gasoline index (+19.2%) was the main factor. Prices for natural gas (+26.0%), electricity (+4.7%), fuel oil (+19.3%), and fuel, parts and supplies for recreational vehicles (+11.7%) also had an impact.

The energy index was up 5.9% on a monthly basis, largely under the influence of the price of gasoline (+6.5%), though natural gas (+15.4%), fuel oil (+2.0%), electricity (+2.3%) and fuel, parts and supplies for recreational vehicles (+3.1%) components also recorded increases.
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Ivanhoe increases working interest in China's Dagang oilfield block to100%.
Sunwing Energy, Ivanhoe's Chinese oil and gas subsidiary, to seek public listing.

BEIJING, CHINA, - Ivanhoe Energy Inc. and CITIC Resources, a subsidiary of CITIC Group (formerly China International Trust & Investment Corporation), announced Feb 21 that CITIC Resources has made an important investment decision to convert its 40% working interest in the Kongnan Project in China's Dagang oilfield into shares of Ivanhoe Energy.

Consideration for this acquisition totals approximately US$27,386,135, to be settled with US$20 million in Ivanhoe Energy common shares and a US$7,386,135 non-interest-bearing, three-year, monthly-amortizing loan. CITIC Resources will acquire 8,591,434 common shares of Ivanhoe Energy at a price of US$2.33 per share. This will represent approximately 3.7% of Ivanhoe's issued and outstanding shares following the completion of the transaction. The loan will be convertible, at Ivanhoe Energy's discretion, into common stock of Sunwing Energy Ltd. when Ivanhoe obtains a public listing for Sunwing to further daylight value and expand the growth of the subsidiary.

The agreement to jointly develop the Kongnan Project was signed by an Ivanhoe Energy subsidiary and CITIC Group in January 2004. The agreement gave CITIC Group the right to convert its participating interest in the Kongnan Project into Ivanhoe common shares. Now, CITIC Group and Ivanhoe have agreed to expand their long-standing cooperation as Ivanhoe continues to develop oil and gas opportunities in China and sharpens its focus on acquiring international reserves and production through its leading edge, heavy-oil-to- light-oil (HTL) and gas-to-liquids (GTL) technologies - which are of particular interest to CITIC Group.

Sunwing Energy Ltd., Ivanhoe's 100%-owned subsidiary dedicated to oil and gas exploration and production in China, will acquire CITIC Resources' 40% working interest in the Kongnan Project. This will increase Sunwing's working interest in the Kongnan Project to 100%, and will increase Sunwing's gross production in China by 67%, to more than 2,050 barrels of oil per day (net 1,681 barrels of oil per day).

"This transaction strengthens Ivanhoe's excellent, longstanding relationship with CITIC Group," said Robert Friedland, Chairman of Sunwing Energy and Vice Chairman of Ivanhoe Energy. "We welcome CITIC as a strategic shareholder and as a potential partner in new energy ventures inside China and in markets around the world, where our technologies will be key to securing and expanding production from heavy-oil reserves and stranded natural gas. In addition, Sunwing's increased ownership of Dagang oil production will provide us with critical mass and stronger positive cash flow, enhancing our financial independence and our position as one of the first - and still one of the few - foreign producers of sweet crude oil on the Chinese mainland - one of the world's most important energy markets."

Wang Jun, Chairman of CITIC Group said: "With the conversion of CITIC Resources' working interest in the Kongnan Project, CITIC will have an exposure to all of Ivanhoe's global operations and not just on the Dagang oilfield. We are looking forward to further developing our relationship with Ivanhoe in new energy ventures that hold a mutual interest for CITIC and Ivanhoe in China and in other countries around the world."

Sunwing Energy is the corporate flagship for Ivanhoe Energy's operations in China. Sunwing's interests include enhanced oil recovery (EOR) operations at Dagang, in Hebei Province, and a large gas exploration project on Sunwing's 900,000-acre Zitong block in Sichuan Province. The Kongnan Project, totalling 22,400 gross acres on six blocks in the Dagang oilfield, is being operated by Sunwing under a 30-year production-sharing contract signed in 1997 between a Sunwing subsidiary and China National Petroleum Corporation. Under this agreement, Sunwing is paid 82% of the oil recovered. A total of 36 wells are in production as part of the ongoing Dagang development program. Dagang oil, a sweet crude of 34 API, is sold at a price slightly less than West Texas Intermediate. The oil price for the first 18 days of February, 2006, averaged US$56.02, an increase from the average of $54.27 received during January, 2006.

CITIC Resources is 61%-owned by the CITIC Group, a Chinese state-owned enterprise. CITIC Group holds major interests in many industries throughout the world that have strategic value to the expanding Chinese economy, including power, banking, airlines, information technology, investment services, real estate, engineering services, heavy industries, infrastructure investment and resource industries.

Mr. Friedland and Chairman Wang announced an Ivanhoe-CITIC initial strategic alliance in October, 2002, committing to cooperate on energy development projects in China and throughout the world. The partnership was subsequently enhanced in April, 2003, when Mr. Friedland and Chairman Wang announced that they had signed an agreement that would enable Ivanhoe and CITIC to form a global strategic alliance to investigate, explore and develop oil, natural gas, metallurgical coal, liquefied natural gas and gas-to-liquid projects in China and around the world to help supply China's future energy requirements.

Ivanhoe Energy is an independent international oil and gas exploration and development company building long-term growth in its reserve base and production. Ivanhoe Energy is a leader in technologically innovative methods designed to significantly improve reserves of oil and gas through the upgrading of heavy oil to light oil (HTL), state-of-the-art drilling techniques, enhanced oil recovery (EOR) and the conversion of natural gas to liquids (GTL). Core operations are in the United States and China, with business development opportunities worldwide.

Ivanhoe Energy trades on the NASDAQ Capital Market with the ticker symbol IVAN and on the Toronto Stock Exchange (TSX) with the symbol IE. On the TSX, Ivanhoe Energy is listed and traded in both Canadian and U.S. dollars. The U.S. dollar trading symbol on the TSX is IE.U.

"Hydro One had a strong year from a financial perspective, enabling us to make important investments in our transmission and distribution infrastructure," said Hydro One President and CEO Tom Parkinson. "Our strategy to focus on our core electricity delivery business and a stabilizing regulatory environment were key elements to our success."

Hydro One's 2005 achievements include:

- Completing the Parkway Transformer Station on time and budget. This

facility improves the reliability of the transmission system serving

the electricity demand in the Greater Toronto Area and helps

facilitate the shut down of the Lakeview Generating Station.

- Receiving the necessary approvals from the Ontario Energy Board (OEB)

for two important projects: the construction of two underground cable

circuits to reinforce our electricity transmission facilities in

downtown Toronto, and the building of a new 76 kilometer 230 kV line

that will improve reliability in the Niagara region. Work has

commenced on both projects.

- Filing a distribution rate application in August 2005. The rate

application is currently in the evidentiary phase and a decision from

the OEB is expected in the first quarter of 2006.

- Moody's Investors Service raised Hydro One's long-term debt rating to

Aa3 from A2 in July 2005 reflecting the application of a new rating

methodology for government-related issuers. Also in July 2005,

Standard & Poor's Ratings Services raised Hydro One's short-term debt

rating to A-1 from A-2. Dominion Bond Rating Service changed the trend

on Hydro One's long-term debt rating to positive from stable in

January 2005.

Net income in 2005 increased $76 million, or 19%, to $483 million compared to 2004, excluding the impact of last year's one-time regulatory recovery. This increase primarily reflects higher tariff revenues within our transmission and distribution businesses. We maintained an intense focus on the operation of our equipment during the abnormally hot summer to ensure the continuous, reliable delivery of electricity to Ontarians. In addition, we experienced a favourable impact on our results due to the recognition of a tax benefit related to the accumulated tax losses of one of our subsidiaries. These impacts were partially offset by higher operations, maintenance and administration expenditures, primarily within our province-wide distribution business. Including last year's one-time regulatory recovery, which was caused by the suspension of an approved rate increase under the Electricity Pricing, Conservation and Supply Act, 2002, our net income decreased by $15 million, or 3%, compared to 2004.

"The hot summer, which resulted in an all-time peak demand, contributed to our bottom line but created operational challenges for our system and staff," added Parkinson. "The transmission and distribution grids performed well allowing us to provide the reliable service that our customers expect. However, the multiple power warnings issued over the summer highlight the immediate need to take action to ensure reliable electricity supply and delivery in Ontario. Our recently completed Parkway Transformer Station and our current project to reinforce the transmission facilities in the Niagara region are good examples of the type of investments that Hydro One will make in the public interest in order to continue to ensure the reliable supply of electricity for the Province."

Revenues increased by $263 million, or 6%, compared to 2004 primarily reflecting higher distribution revenues associated with the recovery of purchased power costs. Distribution revenues also increased due to the implementation of an OEB-approved tariff increase effective April 1, 2005 and the recognition of low-voltage services revenue, both of which were previously suspended. The increase in the demand for electricity, reflecting the hot summer temperatures in 2005, also resulted in higher transmission and distribution tariff revenues. Net cash from operations was $1,170 million in 2005. During the year, the Company paid $291 million in dividends to the Province of Ontario and invested $691 million in capital, primarily in the transmission and distribution systems.

The Nissan X-Trail FCV contains a Canadian-built hydrogen fuel cylinder manufactured by Dynetek Industries Ltd. of Calgary, Alta. The vehicle is being tested at Surrey, B.C.-based Powertech Labs Inc., a wholly owned subsidiary of BC Hydro, in conjunction with Fuel Cells Canada. Fuel Cells Canada manages the Hydrogen Highway(TM), a coordinated, large-scale demonstration and deployment program intended to accelerate the commercialization of hydrogen and fuel-cell technologies. Nissan joined these organizations today in Surrey to kick off the testing.

"Through Nissan's advances in hydrogen fuel cell technology, we hope to improve the practicality of fuel cells as a future clean power source," said John Junker-Andersen, Director, Parts, Service and Quality Assurance at NCI. "Together with the assistance of Powertech and BC Hydro, we are working hard to make the benefits of fuel cells and their promise of high efficiency and zero emissions a viable reality."

A fuel cell vehicle is in effect an electric vehicle, using a fuel cell to convert hydrogen and oxygen into electricity. The electricity is generated by a chemical reaction inside the fuel cell stack when hydrogen from the fuel cylinder combines with oxygen in air. The only by-product is water, making FCVs completely emissions-free.

"With partners such as Nissan and BC Hydro, we are able to test compressed hydrogen in real world situations," said Robb Thompson, Dynetek Industries Ltd. "Through these tests, we have demonstrated that compressed hydrogen is the best commercially suitable alternative for the success of the hydrogen economy."

Nissan will test the vehicle in a number of environments and drive cycles, including moderate cold-weather, high-speed hill climbs and highway driving, to evaluate the vehicle's capabilities and the hydrogen fuel system's performance.

"As members of the Hydrogen Highway(TM), we are pleased to support Nissan's vehicle testing program," said Livio Gambone, Manager, Vehicle Programs at Powertech. "Our climate and geography, plus access to our 70 MPa hydrogen filling station, make the Vancouver area the best and only place to test the viability and endurance of this FCV."

The 70 MPa high-pressure hydrogen-powered Nissan X-Trail FCV is the company's most-recent developmental fuel cell vehicle. Equipped with the

first-ever Nissan-constructed fuel cell stack, the X-Trail FCV also boasts a more compact design and increased power. A previous 2003 model offered a cruising range of 350 km, but thanks to improved stack efficiency and a 30 percent increase in the high-pressure Dynetek hydrogen cylinder's storage capacity, the new X-Trail FCV is expected to achieve a cruising range of more than 500 km.

"We applaud Nissan Canada's decision to test their newest hydrogen powered fuel cell vehicle along the Hydrogen Highway(TM)," said John Tak, President and CEO, Fuel Cells Canada. "As a world-leading centre for hydrogen and fuel cell expertise, British Columbia's Hydrogen Highway(TM) is an ideal proving ground to test and demonstrate these technologies."

Nissan has been working on FCV development since 1996. In addition to design and engineering work conducted in Japan, extensive testing and development has also been conducted in other markets, including the United States, where Nissan is a member of the California Fuel Cell Partnership (CaFCP).

TORONTO, Feb. 13 - Greenpeace co-founder Dr. Patrick Moore said public consultations this week on Ontario's energy supply are an opportunity to communicate the vital importance of nuclear energy to the province's future.

"Nuclear energy is the only non-greenhouse-gas-emitting power source that can effectively replace fossil fuels while helping to alleviate the massive shortfall of 24,000 megawatts in Ontario's energy supply expected by 2025," said Moore, Chairman and Chief Scientist of Greenspirit Strategies Ltd (www.greenspiritstrategies.com).

"Greenspirit Strategies Senior Vice President Trevor Figueiredo will be attending the consultations on my behalf to emphasize the importance of nuclear power to Ontario's energy future," said Moore.

"The Ontario Power Authority expects by 2025 a shortfall of 24,000 megawatts resulting from increasing demand combined with the scheduled retirements of pollution-prone, greenhouse-gas emitting coal-fired power plants by 2009 and the loss of most of Ontario's existing nuclear facilities as these plants reach the end of their design life," said Moore.

"That shortfall of 24,000 megawatts is equivalent to 80 per cent of Ontario's existing capacity," said Moore.

"We strongly support cost-effective renewables such as wind, hydro and geothermal, but there is no practical way renewables alone will be able to alleviate the expected shortfall," said Moore.

"It is simply not realistic - as the anti-nuclear energy activists argue - to replace existing nuclear and coal-fired plants, which currently make up 68 per cent of Ontario's electricity production, with renewables," said Moore. "The only way to alleviate this shortfall is by building new nuclear facilities, and since these plants take 10 years to build, we must start planning for them now," said Moore. "Nuclear power is an extremely safe, clean and reliable form of energy," said Moore.

"There has never been a serious accident at any Canadian nuclear facility since the establishment of the industry over 40 years ago," said Moore. Public consultations are scheduled for cities across Ontario on February 13th, 15th and 17th.

"Throughout 2005, OPG successfully pursued its strategy of improving the performance of its generating assets in a cost effective manner. The reliability of our nuclear, hydroelectric and fossil assets improved and the stations performed extremely well during the record setting levels of demand for electricity experienced during the summer. The improved reliability contributed to an increase in energy production and earnings compared to 2004," said President and CEO Jim Hankinson.

Electricity generated in 2005 of 108.5 terawatt hours (TWh) was higher than 2004 production of 105.0 TWh, an increase of 3.3 per cent. Higher fossil- fuelled production was due to increased electricity demand and improved station reliability. Nuclear production increased primarily as a result of increased capability factors at OPG's Pickering B and Darlington stations. Hydroelectric production declined as a result of lower water levels.

Earnings in 2005 were favourably impacted by an increase in gross margin as a result of higher average sales prices and increased nuclear and fossil- fuelled electricity production. The increase in OPG's average sales prices resulted from higher average Ontario spot market prices, primarily due to higher demand resulting from a prolonged period of hot summer weather and the effect on electricity prices of higher natural gas prices, and from the introduction of regulated prices and other related regulatory changes effective April 1, 2005. The regulatory changes included the elimination of the Market Power Mitigation Agreement rebate and the introduction of a revenue limit on a significant portion of OPG's production from its unregulated generating assets.

OPG received an average price of 4.9 cents/kilowatt hour (kWh) from the

output of all of its generating stations compared to an average price of

4.1 cents/kWh in 2004. OPG's average sales price was considerably less than the weighted average hourly Ontario electricity price of 7.2 cents/kWh in 2005 as a result of the regulated rates and the rebate mechanisms.

Earnings in 2005 were also favourably impacted by a reduction in operations, maintenance and administration ("OM&A") expenses due to the deferral in 2005 of non-capital costs related to the Pickering A nuclear generating station return to service project, as required by regulation. This reduction in OM&A was partially offset by higher nuclear maintenance and repairs related to continuing improvement in station reliability, inventory write-offs as a result of OPG's decision not to proceed with the return to service of Pickering A nuclear generating station Units 2 and 3, and an increase in pension and other post employment benefit expenses primarily due to changes in economic assumptions.

Earnings in 2005 were negatively impacted by an impairment loss on OPG's Lennox gas and oil-fired generating station and an impairment loss on Pickering A generating station Units 2 and 3.

In addition to improved generating asset performance and earnings, there were a number of noteworthy accomplishments in 2005. Unit 1 at the Pickering A nuclear station was synchronized to the provincial grid in September 2005, sending electricity from the unit to Ontario consumers for the first time since December 1997. The unit was declared commercially available in November 2005, adding 515 megawatts (MW) of baseload capacity to Ontario's energy supply. The project represented a complex management and construction challenge, encompassing more than 1.9 million hours of work and almost 3,000 people at its peak.

Construction of a new 10.4 kilometre water diversion tunnel began in Niagara that will allow OPG's Sir Adam Beck hydroelectric generating facilities to more effectively utilize available water to increase annual production by approximately 1.6 TWh. Construction started in September 2005, with project completion expected by late 2009.

OPG's Board of Directors decided that while technically feasible, the return to service of Units 2 and 3 at the Pickering A nuclear generating station was not justified on a commercial basis. OPG will focus its resources on improving the performance of its remaining operating nuclear units.

OPG's 1,140 MW coal-fired Lakeview generating station was closed in April 2005 as part of the Ontario Government's plan to replace coal-fired generation.

"In addition to our many achievements in 2005, OPG and its Shareholder reached agreement on a comprehensive mandate that specifies OPG's strategic objectives which we will vigorously pursue. By continuing to demonstrate that OPG is a reliable, efficient and safe operator of electricity generating stations, we will reinforce the vital role that OPG plays in Ontario's electricity marketplace," said Mr. Hankinson.

QUEEN'S PARK, Feb. 9 - Ontario's large industrial electricity consumers will benefit from three years of stable, predictable pricing on electricity provided by Ontario Power Generation (OPG), Minister of Energy Donna Cansfield announced.

Starting May 1, 2006, the revenue limit on OPG's unregulated facilities will drop to 4.6 cents per kilowatt-hour from the present limit of 4.7 cents. In 2007 the limit on revenues from these facilities will go up to 4.7 cents, and will be increased to 4.8 cents May 1, 2008.

Any OPG revenues above these limits will result in a rebate issued quarterly rather than annually, which will ensure the money flows to businesses as quickly as possible.

"Our government is committed to price stability," Cansfield said. "This is an important step for Ontario's economy and means enhanced competitiveness and a more prosperous Ontario."

Predictable and stable pricing will benefit not only large consumers, but all customers, including residential consumers, small businesses and municipalities, universities, schools and hospitals.

"Today's announcement is an important step in helping Ontario's industries remain viable and competitive," said Scott Hand, Chairman and CEO of Inco Limited. "The Ontario government has taken a responsible approach that will stabilize electricity prices over the next three years, which is crucial to support the sustainability of not just our operations but also businesses across the province."

Last year the government set an average price of 4.5 cents per kilowatt-hour on the output of OPG's regulated assets, which includes its nuclear and largest hydroelectric facilities. These prices stay in place until the Ontario Energy Board sets new prices, no earlier than March 31, 2008. "The Ontario government has listened to large industries," said Charles Oliver, Vice President Supply Chain, of Labatt Breweries of Canada. "Stable electricity pricing over the next three years will ensure that Ontario's economy, and the industries that drive it, remain competitive on a global scale."

"Dofasco is a significant contributor to Ontario's economy and electricity is a significant input in the making of our products. Therefore, a reliable, affordable supply of electricity in Ontario is important to our competitiveness. We are pleased that the McGuinty government is signaling, through this rate decision, its commitment to providing stable and predictable electricity pricing. The government's decision demonstrates sensitivity to the competitive challenges currently confronting Ontario's manufacturing and industrial sectors. This is a responsible approach that will provide businesses greater ability to plan investments in Ontario with confidence in respect to electricity costs. Dofasco particularly commends the government on having maintained a consultative, thoughtful approach to decision making based on thorough analysis and detailed consultation with industry," said Don Pether, President and Chief Executive Officer, Dofasco Inc.

The new pricing will affect approximately 55,000 large industrial and commercial electricity customers across Ontario who use more than 250,000 kilowatt-hours per year. Unregulated assets owned by OPG include smaller hydroelectric plants and coal and gas-fired stations, which produce approximately 25 per cent of Ontario's electricity.

The fragile fate of the world's energy supply and distribution chain is likely to take center stage at an upcoming meeting in Moscow of G8 finance ministers, overshadowing their traditional debate on economic growth and currency fluctuations, reports Agence France Presse.

Ministers from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States (the G8), who convene four to five times a year, are to meet February 10 and 11 at a moment of mounting concern about the vulnerability of global oil flows. Political crises in several key energy players - Ukraine, Iran, Nigeria and Venezuela - have helped drive crude oil prices to near record levels in recent weeks. Russia, the world's second largest oil producer, is likewise a critical participant in the global energy network. Its recent price-related feud with Ukraine disrupted gas deliveries to Europe and has forced European governments to step up energy diversification initiatives.

Dow Jones notes that the G8 finance ministers will likely repeat calls for greater transparency in international energy markets while expressing confidence in the global economy's ability to continue to grow in the face of high oil prices. It will be the first time that Russia has hosted a meeting of top policy makers from the world's leading economies. The Russian hosts will likely seek to reassure their European guests on the continuity of gas supply in the future. However, some European delegations will press for a more formal assurance of the security of future energy supply.

With growth picking up in the euro zone and Japan and remaining strong in the US, finance ministers are unlikely to alter the view expressed at their December gathering that "global economic growth remains and should continue to be solid, although slowed by high and volatile oil prices." But the threat to the health of the world economy that is posed by high oil prices remains a concern. Reflecting those concerns, finance ministers will continue to urge longer-term efforts to bring the oil price down. They are likely to repeat their call for increased investment in exploration, production and refining capacity. They will also discuss efforts to standardize the reporting of reserves and production. But it's unlikely the meeting will produce much that is new or concrete.

The Financial Times (UK) writes that despite the G7's increasingly plaintive calls, energy prices have continued to rise, with oil trading at around $63 a barrel yesterday. By September last year, their earlier pleas to OPEC to increase production had evolved into an eight-point plan to make the oil markets freer, more transparent and, through energy conservation and the development of renewable sources, less able to disrupt the world economy.

To that end, the finance ministers will encourage the World Bank - whose president, Paul Wolfowitz, will also be present - to push ahead with creating a new framework for channeling public and private money to renewable energy projects in developing countries. Given that many poor oil importers are hit hard by price shocks, this also has the happy effect of allowing the G8 to wring its hands over the fate of the world's poor. "Measures will certainly be discussed to reduce the impact on these

(developing) countries, which often relatively low efficiency in energy use," said one German finance ministry official.

In a separate piece, The Financial Times further writes that amid rising concern about Russia's reliability as a supplier of gas to Western Europe, France intends to use this weekend's meeting of G8 finance ministers to offer the hope of financial support if Moscow agrees to diversify its energy exports. Britain, Italy and the European Commission support the French objective for Russia to sign up to energy rules. In a plan, France will offer to provide longer term contracts to Russia for energy supply and help arrange financing from the World Bank and other international bodies to build more gas pipelines. In return they want Moscow to loosen its grip on the Russian oil and gas sectors alongside measures to help poor countries deal with record high oil prices. Thierry Breton, France's finance minister, will put forward proposals designed to encourage Moscow to ratify the Energy Charter Treaty (ECT), creating a legal framework for the energy sector. Russia has signed the ECT but has been slow to ratify it.

The Moscow Times reports that the meeting will provide the first peek at the likely direction of the group's discussions under Russia's G8 presidency. President Vladimir Putin and his G8 sherpa, or point man, Igor Shuvalov, have reiterated the three main themes in recent days: energy security, education and combating infectious diseases. This weekend's meeting will also focus on the impact of disease on the global economy and restricting funding and money laundering opportunities for terrorists. Meanwhile, exchange rates, a staple of G7 finance meetings, will not be discussed. The topic of debt relief to poor countries was set to provide continuity with Britain's G8 presidency last year, which was devoted to combating African poverty. Ahead of the meeting, Finance Minister Alexei Kudrin said Tuesday that Russia would write off $688 million in debt to 16 of the world's poorest nations, including Benin, Tanzania and Zambia. Russia also this week declared its intention to write off $10 billion in debts from Afghanistan, dating from the time of the Soviet occupation of the country.

NEW YORK Reuters - Ontario will likely have to keep burning coal to generate electricity beyond the planned 2007-2009 retirement of its coal-fired power plants for reliability reasons, the province's grid operator said in a report Thursday.

In the Ontario Reliability Outlook, the Independent Electricity System Operator said the coal units need to remain available "for a period of time beyond the announced shutdown dates" to accommodate possible delays in the construction of replacement generation and transmission upgrades.

The provincial government wants to shut all the coal-fired generation in Ontario for health reasons. Ontario Power Generation, the province-owned generating company, owns about 6,400 megawatts of coal-fired generation at four stations.

The company currently plans to retire three of the stations -- Thunder Bay, Atikokan and Lambton -- by the end of 2007, and the eight units at Nanticoke in 2008 and 2009. One MW powers 800 homes.

The IESO said the Lambton and Nanticoke units would likely need to remain in reserve beyond their planned retirement dates.

Moreover, OPG will have to convert the units at Nanticoke into synchronous condensers to produce reactive power, needed to move electricity over long distances, to stabilize the flow of power from the Bruce nuclear station and other plants into the Greater Toronto area.

The IESO said, however, Nanticoke would not have to burn coal to produce reactive power in the future.

Over the next decade, the province plans to construct about 7,000 MW of new generating capacity, increase conservation and demand response programs, and bolster the transmission grid to reduce congestion and increase imports.

The IESO said it would continue to focus on reliability during the transition from coal to cleaner sources of energy and would tell the province when it is safe to shut the old units.

TORONTO BOTTLENECK

By the summer of 2008, the IESO warned, it might need to impose California-like rotating blackouts in Toronto to avoid exceeding the capability of the city's transmission facilities.

The transmission system serving central Toronto was at or near capacity during the peak periods in the summer of 2005.

There are no generating facilities in central Toronto. The city gets its electricity via two main transmission facilities, which are at or near capacity.

As a result, the IESO said, the city needs 250 MW of generation within central Toronto by the summer of 2008 to avoid further stressing the aging transmission infrastructure.

Over the next decade, the IESO said, the city would need additional generation and a third transmission path.

Consultations An Important Next Step In Ontario's Energy Plan

QUEEN'S PARK, Feb. 2 - The McGuinty government is encouraging Ontarians to participate in consultations on Ontario's future electricity supply mix, Energy Minister Donna Cansfield announced yesterday.

"These consultations are an important part of our government's plan to ensure a diverse, clean, reliable and affordable supply of energy, now and for the future," said Cansfield. "We're addressing Ontario's immediate energy challenges with an aggressive plan to build new generation and create a culture of conservation in Ontario, but we also need to plan for the long-term."

The public consultations are an important step in the government's energy plan for Ontario. This plan consists of four components:

- Building new generation capacity
- Maximizing our existing transmission and generation assets
- Creating a culture of conservation
- Putting the infrastructure in place to ensure sound planning for Ontario's long-term energy needs.

In 2005, the Minister of Energy directed the Ontario Power Authority to prepare a report providing advice to the government on Ontario's future electricity supply mix. The public consultations will address recommendations made by the Ontario Power Authority in their report delivered to the government in December 2005.

Ontarians will have several opportunities to share their views on the Ontario Power Authority's Supply Mix Report and to receive information, including:

- Public consultation meetings in 12 communities across Ontario
- Visiting the ministry's website www.ontario.ca/energy to post comments
- Posting the Ontario Power Authority's Supply Mix Advice on the Environmental Bill of Rights, with the opportunity to respond now extended to the end of February.

In addition to these consultations, Minister Cansfield continues to meet one-on-one with stakeholders and citizens upon request to discuss the Supply Mix Report.
"These consultations provide opportunities for Ontarians to receive information about the Ontario Power Authority's recommendations and to share with us their views on the report," said Cansfield. "It's important that we hear from all Ontarians on the energy choices that are available to address the province's long-term electricity needs."
Additional information about the public consultation meetings will be released in the coming days through advertisements in local community newspapers, and on the ministry's website established for the consultations, www.ontario.ca/energy.

For more information visit www.energy.gov.on.ca

Backgrounder ------------------------------------------------------------------------- February 2, 2006

ENSURING A DIVERSE, CLEAN, RELIABLE AND AFFORDABLE SUPPLY OF ELECTRICITY

The public consultations being held across Ontario by the Ministry of Energy are an important step in putting into effect an energy plan that ensures Ontarians have a safe, clean, reliable and affordable supply of electricity for generations to come.
In December 2005, the Ontario Power Authority tabled a report with the government that recommended key considerations in setting the province's future electricity supply mix. The public consultations provide an opportunity for Ontarians to share their views and will help the Ontario Power Authority determine the supply mix the province will strive to achieve.
Over the past two years, the Ontario government has been strengthening Ontario's electricity system with a focus on long-term stability, reliability and sustainability. The government's comprehensive energy plan focuses on supply and conservation measures with a clear aim of ensuring the province develops a diverse, clean, reliable and affordable supply of electricity.

Key Elements of Ontario's Energy Plan

------------------------------------- Strengthening System Planning

Ontario's energy plan addresses the long-term needs of the province by establishing an overarching supply management system that brings together key partners to provide reliable electricity supplies for the people and businesses of Ontario.

- Ontario Power Authority (OPA): Responsible for medium and long-term electricity demand and supply planning, coordinating and planning conservation and load management programs, and procurement of electricity capacity or supply. Within the OPA is housed the Conservation Bureau, responsible for carrying out programs and ensuring Ontario's conservation potential is realized.
- Independent Electricity System Operator (IESO): The IESO manages Ontario's wholesale electricity market, matching supply against forecasted demand and conducting short-term assessments of Ontario's electricity supply.
- Ontario Energy Board (OEB): The OEB sets transmission and distribution rates. It also approves the OPA and IESO budget and fees, the regulated price plan for residential and low volume consumers, and the OPA's Integrated Power System Plan.

Securing Ontario's Electricity Supply

With a sound infrastructure in place, the government is focusing on securing the province's energy supply. Over the course of 2004 and 2005, the government advanced projects that will provide the province with over 10,000 megawatts over the next five years - enough power for 4.1 million homes. Since October 2003, approximately 2,800 megawatts have come online. Between 2004 and 2007, Ontario will have created more new generation capacity than any other jurisdiction in North America.

Diversifying Supply for Stable, Competitive Prices

Diversity of supply is key to ensuring prices remain stable and competitive as the government works to maximize Ontario's current electricity supply assets and as it builds new generation.

In addition to procuring new capacity, the province is also maximizing Ontario's existing electricity assets by:

- Investing almost $1 billion in a new tunnel from Niagara Falls to the Adam Beck generating complex that will add 1.6 billion kilowatt hours of clean electricity by 2009
- Reaching an agreement with Bruce Power to restart Bruce A, units 1 and 2. That agreement will see Bruce Power invest $4.25 billion in Ontario's economy and the creation of as many as 1,500 jobs
- Taking a leadership role in developing an east-west electricity transmission grid. This will reinforce and expand our transmission infrastructure and increase Ontario's ability to supply our energy needs through clean hydro power
- Signing an agreement with Manitoba to purchase 200 megawatts of electricity. It also includes a commitment to upgrade the existing transmission lines to 400 megawatts by 2009. A second phase would see hydroelectric sites being developed starting early next decade in northern Manitoba, including the 1,250 megawatt Conawapa hydro development
- Working with Quebec to develop a major hydroelectric generation project at the Lower Churchill River in Labrador, from which 945 megawatts would come to Ontario.

Focusing on Clean Renewable Energy and Encouraging Investment

The government is expanding renewable generation and is well on its way to meeting its target of adding five per cent (1,350 megawatts) of renewable generating capacity by 2007.
To date, the province has entered into agreements to purchase power from 19 renewable energy projects, including three waterpower projects, three landfill gas and biogas projects and 13 wind farms - enough to power 350,000 homes. The new projects are expected to bring almost $3.5 billion in new investment and jobs to Ontario. As the province moves forward, it is creating a new industry. In November 2005, for example, DMI Industries of North Dakota announced that it will locate its new wind tower manufacturing facility in Fort Erie, creating both local investment and local jobs.
The province is also encouraging homeowners, farmers and schools to set up renewable energy systems by letting them sell clean power into the grid. The government is reviewing an approach to a standard offer. Over the long term, it is anticipated that standard offer will add hundreds of megawatts of renewable power to the system.
Part of the government's commitment to new, clean energy is its plan to replace coal-fired generation - the single-largest greenhouse gas reduction initiative in Canada. Coal closure will reduce Ontario's emissions by up to 30 megatonnes of CO2 a year - comparable to taking almost seven million cars off the road. Ontario is the first jurisdiction in North America to commit to phasing out all coal-fired generation.

Building a Culture of Conservation

Ontario is pursuing two short-term conservation targets: a five per cent reduction in the growth of peak electricity demand across Ontario, and a 10 per cent reduction in consumption by government operations by 2007. We are already more than half way there through innovations like Deep Lake Water Cooling, energy retrofits across the government's real estate portfolio and engaging the Ontario public service in energy conservation initiatives. The government is making it possible for local distribution companies to invest over $160 million in conservation in their local communities over the next three years, and has invested in a diverse portfolio of conservation outreach pilots in social housing, agriculture, schools, home construction and small business. Recent initiatives include:

- Introducing the Energy Conservation Responsibility Act The government introduced the Energy Conservation Responsibility Act in November 2005. The legislation would establish conservation leadership in the public sector, encourage conservation practices and support the building of a conservation culture in Ontario. The proposed legislation would also help achieve the government's commitment to install 800,000 smart meters in Ontario by 2007 and for all homes and small businesses by 2010.

- Issuing Program Directives to the Ontario Power Authority A number of energy conservation directives have been issued, including procurement of 250 megawatts or more of demand side management and/or demand response initiatives, and procurement of up to 1,000 megawatts of high efficiency combined heat and power projects across the province. Directives have also been issued for conservation programs of up to 200 megawatts for the low-income and social housing sector, as well as programs to take energy-inefficient appliances out of service and to encourage energy-efficient lighting primarily in the residential and small commercial sectors.

For more information visit www.energy.gov.on.ca

Backgrounder
------------------------------------------------------------------------- February 2, 2006

TAKING STEPS TO ENSURE PUBLIC INVOLVEMENT IN DECIDING ELECTRICITY SUPPLY MIX

The Government of Ontario is ensuring Ontarians have input into the decisions around the province's future generation supply mix. Twelve one-day sessions will take place in 12 different towns and cities across Ontario to allow public comment on the Ontario Power Authority's (OPA) Supply Mix Report.
The report outlines key considerations for the province's energy supply over the next 20 years. In drafting that report, a wide range of organizations and individuals had the opportunity to provide input to the OPA.
The consultations will consist of an open house with ministry staff available to answer questions on energy supply issues, followed by a town hall-style meeting where individuals can share their views with their community. The consultation sessions are designed to provide ample opportunity for individuals to provide their views on the various energy options. The consultation schedule is:

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Mississauga Thunder Bay Kincardine February 13, 2006 February 15, 2006 February 17, 2006 Open House: 9 a.m. Open House: 9 a.m. Open House: 12:30 p.m. to 5:00 p.m. to 5:00 p.m. to 5:30 p.m. Public Consultation: Public Consultation: Public Consultation: 6:30 p.m. to 8:30 p.m. 6:30 p.m. to 8:30 p.m. 6:30 p.m. to 8:30 p.m. Delta Meadowvale Thunder Bay Davidson Centre Arena Resort and Valhalla Inn & Community Centre Conference Centre 1 Valhalla Inn Road 601 Durham Street 6750 Mississauga Road

------------------------------------------------------------------------- Ottawa Kingston Kitchener-Waterloo February 13, 2006 February 15, 2006 February 17, 2006 Open House: 9 a.m. Open House: 9 a.m. Open House: 9 a.m. to 5:00 p.m. to 5:00 p.m. to 5:00 p.m. Public Consultation: Public Consultation: Public Consultation: 6:30 p.m. to 8:30 p.m. 6:30 p.m. to 8:30 p.m. 6:30 p.m. to 8:30 p.m. Ottawa Congress Centre Days Inn Kingston Delta Kitchener 55 Colonel By Drive 33 Benson Street 105 King Street East

------------------------------------------------------------------------- Sarnia Oshawa London February 13, 2006 February 15, 2006 February 17, 2006 Open House: 9 a.m. Open House: 9 a.m. Open House: 9 a.m. to 5:00 p.m. to 5:00 p.m. to 5:00 p.m. Public Consultation: Public Consultation: Public Consultation: 6:30 p.m. to 8:30 p.m. 6:30 p.m. to 8:30 p.m. 6:30 p.m. to 8:30 p.m. Village Inn Sarnia LVIV Hall and Pavillion Hilton - London 751 Christina Street 38 LVIV Boulevard 300 King Street North

------------------------------------------------------------------------- Toronto St. Catharines Sudbury February 13, 2006 February 15, 2006 February 17, 2006 Open House: 9 a.m. Open House: 9 a.m. Open House: 9 a.m. to 5:00 p.m. to 5:00 p.m. to 5:00 p.m. Public Consultation: Public Consultation: Public Consultation: 6:30 p.m. to 8:30 p.m. 6:30 p.m. to 8:30 p.m. 6:30 p.m. to 8:30 p.m. Crowne Plaza Toronto Quality Hotel Parkway Holiday Inn Sudbury Don Valley Convention Centre 1696 Regent Street 1250 Eglinton Avenue 327 Ontario Street East

------------------------------------------------------------------------- Individuals can also provide comment by visiting the Ministry's website www.ontario.ca/energy

Washington, D.C. —In his State of the Union address last night, President Bush took a big step toward returning the United States to the disastrous energy policies of the Nixon and Carter years, warns the Competitive Enterprise Institute.

“The president's dangerous rhetoric that we are addicted to oil is an indication that the administration is addicted to confused thinking about energy policies,” says Myron Ebell, CEI’s director of energy policy. “As bad as the policies proposed by President Bush are, the addiction rhetoric is much worse. President Bush might as well have said, ‘we're addicted to prosperity, comfort, and mobility, and I've got the policies to do something about it.’

“The goals and methods the president announced in his State of the Union address will be hindrances and obstacles to creating a bright energy future for American consumers. They will interfere with the working of the market that provides incentives for increasing supplies and for technological innovations. In taking these steps in the wrong direction, President Bush also seems to have forgotten the positive energy policies that he has promoted in the past. These include removing the political and legal obstacles to exploiting America's vast conventional energy resources, such as opening portions of the Alaska National Wildlife Refuge and the Outer Continental Shelf to oil and gas development.”

powerWISE(R) Education Campaign Targets Ontario Consumers

MISSISSAUGA, ON, Jan. 31 - The McGuinty government and six of Ontario's largest electricity distribution companies are launching a major consumer education campaign to encourage energy conservation.
The powerWISE education campaign will encourage all Ontarians to work together to conserve energy and reduce the demand for electricity. "Energy conservation is vital to ensuring Ontario has a clean, secure and reliable supply of electricity for many years to come," said Energy Minister Donna Cansfield. "This partnership is another major step in building a conservation culture in Ontario."

"In 2003, Hamilton Utilities Corporation developed the powerWISE energy conservation brand as part of our Corporate Social Responsibility program," said Art Leitch, President and Chief Executive Officer of Hamilton Utilities Corporation. "We recognized early on that it was our responsibility to educate our customers on energy conservation. Today, with Horizon Utilities, five of the other largest utilities in Ontario and the Ministry of Energy all working collectively under the powerWISE conservation brand, consumers will receive consistent messaging and education that will undoubtedly accelerate the growth of a conservation culture across the Province."

The Ontario-wide campaign will include conservation ads on television and in newspapers. Partners in the campaign include the Province of Ontario, Toronto Hydro Electric System, Enersource Corporation (Mississauga), Hydro Ottawa Limited, Horizon Utilities Corporation (Hamilton, St. Catharines), PowerStream (Aurora, Markham, Richmond Hill and Vaughan) and Veridian Connections (Ajax, Brock, Belleville, Clarington, Gravenhurst, Pickering, Port Hope, Scugog and Uxbridge) and all electricity distribution companies have been invited to join powerWISE. The powerWISE brand has been developed and promoted by the utilities in support of the Ontario government's goal of building a conservation culture in Ontario.

For more information on powerWISE visit www.powerwise.ca

Diversification will alleviate pressures on world supplies, agreed Fatih Birol, Chief Economist and Head of the Economic Analysis Division at the International Energy Agency. Governments and companies will have to diversify away from oil and gas, as well as away from traditional suppliers to find new markets.

"We have the mechanisms, machinery and institutions that can respond" to oil shocks, said Daniel Yergin, Chairman of Cambridge Energy Research Associates, USA. He does not foresee an oil shock unless there is a "massive recession".

Hurricanes Katrina and Rita demonstrated how initial panic over interrupted energy supplies proved unfounded and "the situation was quickly normal again," commented Yergin. "The system reacted well," he said.

"The oil infrastructure is robust enough to deal with a 5% cut in supply," said Birol, but he stated that market uncertainty is destabilizing.

Mohammed Barkindo, Acting Secretary-General of OPEC, said that his organization "remains ready to step into the market". He pointed to the fact that the Vienna-based institution made its reserves available in the wake of Hurricane Katrina. "This shows that OPEC will step in at any time there is a shortage in the market because one of the key issues is market stability," he said.

The experts agreed that the disclosure of reserves needs improvement and called for guidelines to be updated. "We need a universally accepted definition of reserves reporting," said Birol.

OPEC does not believe nuclear energy to be a viable alternative option, while Birol stated that "climate change and energy security will see Europe and the US look at nuclear much more closely."