Boralex Announces Start-up of Thermal Power Plant in Ashland, Maine

Montréal (Québec), September 28, 2004 - Boralex Inc. (TSX: BLX.A), the “Corporation”, announces the start-up of its wood-residue thermal power plant with an installed capacity of 34 MW in Ashland, Maine. A major effort has been underway in recent months to set up new agreements for the sale of electricity from this plant. A long-term contract with WPS Energy Services, Inc., a subsidiary of WPS Resources Corporation (NYSE: WPS), has been signed for the output from both the Ashland plant and the Fort Fairfield plant, which is also in Maine.

Wood-residue supply contracts have also been arranged with Canadian and US suppliers, allowing the Corporation to increase its reserves and secure long-term fuel supplies for the two plants, which will generate over 400,000 MWh per year. The Ashland start-up is scheduled for December 1, 2004.

The project means more jobs for the local economy and increases production of “renewable” energy supplies in Maine at the time the fossil fuel prices have risen dramatically. About 20 workers will be hired to operate the plant. An additional 70 workers will be required in the related forestry and trucking industries. In addition, the plant will produce power using renewable energy supplies and reduce reliance on fossil fuels.

The Ashland plant has been offline since June 2002 due to difficult conditions in the northeastern US electricity market and higher fuel prices. Consequently, the priority has been to find solutions that make both plants more efficient and profitable.

Claude Audet, president and COO of Boralex, said “We are pleased to announce that we’ll be starting to operate the Ashland plant again and that we have improved the operating conditions at the Fort Fairfield plant. The concerted effort by our team will give Boralex an encouraging outlook in the wood-residue energy sector in the US, along with enhanced operating synergies. The Ashland start-up will also help the economic development of the Ashland community, where our Corporation has been involved since September 2001.”

 

Boralex focuses on four types of power generation: hydroelectric power, thermal or cogeneration power from natural gas or wood residue, and wind power. These are all fields where Boralex has developed proven expertise and they are all centered on renewable energy. The Corporation employs more than 240 workers and owns 17 power stations in Quebec, the United States and France, with an installed capacity of close to 240.0 MW, as well as an urban wood processing and recycling centre in Montreal. In addition, the Corporation holds a 23% interest in Boralex Power Income Fund which owns 10 power stations in Quebec and the United States with an installed capacity of close to 191.0 MW. Management of the Fund's assets is provided by Boralex. (www.boralex.com)

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For further information, please contact:

Mr. Jean-François Thibodeau
Vice-President and Chief Financial Officer
Boralex Power Inc.
Telephone: 514-985-1348
Fax: 514-985-1355
E-mail: jean-francois_thibodeau@cascades.com