First Source retail electricity business sold to Energy Savings

MISSISSAUGA, ON, May 23, 2003 — First Source Energy Corp. has reached agreement with the Ontario Energy Savings Corporation, a subsidiary of Energy Savings Income Fund (Energy Savings) to sell its retail electricity business interests, involving the transfer of over 8,200 residential, industrial and commercial accounts consuming over 150 megawatts of power.

“We are pleased to add these customers to the Energy Savings family. We expect a smooth transition from First Source and look forward to continuing the provision of fixed price commodity supply during this time of electricity price volatility,” said Rebecca MacDonald, CEO of Energy Savings.

“First Source will be working closely with Energy Savings to ensure a seamless transfer of these accounts,” said Gunars Ceksters, President and CEO of Enersource Corporation, 57.7% shareholder of First Source Energy. “We are very pleased that they will continue to be served by a Canadian-owned energy marketing company, and one with such a strong emphasis on customer care and service.”

“First Source had very strong performance ‘out of the gates’ since the opening of Ontario’s competitive electricity market,” said John Wiersma, CEO of Veridian Corporation, and 42.3% shareholder in First Source Energy Corporation. “While its shareholders have agreed that changing regulatory and market conditions make this sale necessary, we are very proud of what First Source has accomplished.”

Energy Savings is one of the largest independent energy marketers in Canada, and is traded on the Toronto Stock Exchange (SIF.UN). This transaction will add to the 690,000 Ontario residential customer equivalents that have already contracted with OESC for long-term electricity and natural gas services.

First Source will work closely with Energy Savings to ensure that all accounts are transferred smoothly, with little-to-no impact on front-line customers. “This transfer will be invisible to most customers, as the terms of their contracts and service arrangements won’t change,” said Ceksters. “There may be a minor adjustment to the listed supplier on their electricity bills, which are sent out by the local electricity distribution companies. Of course, they will be notified directly of the transfer as part of the transition.”

Enersource Corporation’s core electricity distribution business, Enersource Hydro Mississauga Inc., serves 170,000 customers and is one of Ontario’s largest regulated distribution utilities. It is highly regarded as a top performer in service efficiency, safety and system reliability. Enersource Corporation’s growing number of competitive business interests are owned and managed through various affiliated companies. Its “Services” companies include Enersource Telecom Inc. providing advanced high-speed communications to business and public sector users in Mississauga, Enersource Technologies Inc. reaching out internationally with specialized engineering, energy products and construction services, and Enersource Hydro Mississauga Services Inc. applying company expertise directly within the changing utility sector. Enersource Corporation is 90% owned by the City of Mississauga and 10% by BPC Energy Corporation, a subsidiary of the Ontario Municipal Employees Retirement System. In this unique partnership, Enersource Corporation is pursuing various opportunities to further enhance efficiency through business acquisitions, mergers and other partnership opportunities within the Ontario electricity distribution industry. For more about the Enersource family of companies visit:

Through its subsidiary, Veridian Connections Inc., Veridian Corporation is responsible for distributing electricity to more than 90,000 customers in the Cities of Pickering and Belleville, the Towns of Ajax and Port Hope, and the communities of Uxbridge, Bowmanville, Newcastle, Orono, Beaverton, Sunderland and Cannington. The Corporation also owns Veridian Energy Inc., a Pickering based company that provides billing, call centre, fibre-optic communications, and rental equipment services to clients in central and eastern Ontario.

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