ATCO also reported adjusted earnings for the first quarter of 2009 were CAD96.1 million (CAD1.66 per share) compared with the adjusted earnings of CAD92.3 million (CAD1.60 per share) in the year-ago quarter.

Recent Developments During First Quarter Of 2009:

ATCO Power along with the Government of Western Australia announced the start of construction of a new 86 megawatt power station in Karratha.

ATCO I-Tek announced that it entered into a strategic association with Wipro to provide joint delivery of some customer care services and to pursue new opportunities to the utility business process outsourcing market.

ATCO Gas announced that along with the Town of Viking and Beaver County, Alberta, they opened the new geothermal Viking Operations Centre.

ATCO Electric, ATCO Gas, ATCO Power and ATCO Midstream, announced that they are providing support to a much-needed fire-rescue training centre in High Prairie. The centre will provide hands-on and practical training for emergency rescue personnel throughout Northwestern Alberta.

Adjusted earnings for the first quarter of 2009, increased manilny due to increased international operations and the impact of a settlement completed in the first quarter of 2009 relating to the cancellation of a workforce housing camp for the Fort Hills Energy Limited Partnership in ATCO Structures (Fort Hills Settlement). Also contributing to higher Adjusted Earnings was the impact of higher earnings associated with improved investment in transmission infrastructure in Alberta in ATCO Electric, the impact of the 2008/09 general rate application decision in ATCO Gas (ATCO Gas GRA), the impact of the ATCO Pipelines’ negotiated settlement decision for 2008 and 2009 (ATCO Pipelines Negotiated Settlement), increased generation due to favourable merchant conditions in ATCO Power’s UK operations, the end of the 2007/08 Barking outage in March 2008 and increased business activity in ATCO Frontec’s operations. These increases were partially offset by decreased Canadian manufacturing operations in ATCO Structures, the 2008 recognition of insurance proceeds from the 2007/08 Barking outage in ATCO Power’s UK operations, the timing and demand for natural gas storage resulting in lower storage fees and lower margins for natural gas liquids (NGL) extraction in ATCO Midstream.

Revenues for the first quarter of 2009, increased mainly due to better international operations and the impact of the Fort Hills Settlement in ATCO Structures, increased business activity in ATCO Frontec’s operations, Alberta Utilities Commission (AUC) approved interim customer rates in ATCO Electric, the impact of the ATCO Gas GRA, and the ATCO Pipelines Negotiated Settlement. Also contributing to increased revenues were higher natural gas fuel purchases recovered on a no-margin basis, higher generation and higher availability resulting from the return to service of the Barking generating plant in March 2008 and favourable merchant conditions in ATCO Power’s UK operations.

These increases were partly offset by reduced Canadian manufacturing operations in ATCO Structures, the timing and demand for natural gas storage resulting in lower storage fees and lower NGL prices in ATCO Midstream, the 2008 recognition of insurance proceeds from the 2007/2008 Barking outage in ATCO Power’s UK operations, and the impact of applying new accounting standards in ATCO Electric, ATCO Gas and ATCO Pipelines related to the recognition of revenues for rate regulated assets. The new accounting standards pertain to the recognition of revenues, and depreciation expense and had no impact on earnings.