KMS Power Inaugurates Fifth Line At KMS Peel And Reports On Other Corporate Developments.

Business Editors

VANCOUVER, B.C.--(BUSINESS WIRE)--April 24, 2001

KMS Power(TSE:KMS.UN.)

The KMS Power Income Fund, (the "Fund") through its manager KMS Energy Inc., (the "Manager"), is pleased to announce the inauguration of the fifth waste incineration line at KMS Peel in Brampton, Ontario.

The Fifth Line is a cornerstone of the "Expansion 2000" program at KMS Peel.

Final commissioning tests have been completed, and the line is now functional and operating. However, until other elements of the Expansion 2000 program also become fully integrated and operational, and in particular the SCR pollution abatement system, only four lines are permitted to operate at any given time. As a consequence, on an interim basis, the Fifth Line is effectively providing relief when other lines are shut for maintenance.

The Manager is also pleased to announce that due to a drop in the price of natural gas, KMS Crossroads has resumed operations on a seven day a week basis.

The Manager also advises that it has received the resignation of PricewaterhouseCoopers LLP ("PWC") as auditors of the Fund, effective March 27, 2001. A recommendation for the appointment of Ernst & Young LLP, as successor auditors was approved by the audit committee and by the Board of Trustees of the Fund, subject to all applicable regulatory and Unitholder approvals. It is anticipated that effective June 4, 2001, Ernst & Young will be appointed as the new auditors of the Fund.

There were no reservations in the Auditors' reports for either of the Fund's two most recently completed fiscal years, nor for any period subsequent thereto for which an audit report has been issued to date. However, in the opinion of the audit committee and the Board of Trustees of the Fund, there were disagreements with PWC with respect to the completion of the audit of the 2000 financial statements, and that would have resulted in a reservation in PWC's audit report had they not been resolved to their satisfaction. The disagreements related to the application of generally accepted accounting principles with respect to capitalization of expense, recognition of revenue, and accrual of expenses. These issues were resolved to the satisfaction of PWC and an unqualified audit report was issued.

KMS Power is an open-ended trust, operating independent power projects in Canada and the United States. Prior news releases and/or general information can be accessed through the KMS web site (www.kmsenergy.com); by contacting KMS Energy, Inc. at 1-888-959-2600; or through Michael O'Connor, Director, Investor Relations of the KMS Power Income Fund, at 888-705-3377.