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(GREAT LAKES POWER-LOGO)

SECOND QUARTER 2003 INTERIM REPORT



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INTERIM REPORT FOR THE SIX MONTHS ENDED JUNE 30, 2003



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|4 |  | Highlights Year to Date
|- |  | -----------------------

|                                     |  |                            |       |                          |  |      |       |      |  |   |       |  |  |   |       | 
|------------------------------------ |  | -------------------------- | ----- | ------------------------ |  | ---- | ----- | ---- |  | - | ----- |  |  | - | ----- | 
|                                     |  | Three months ended June 30 |       | Six months ended June 30
|                                     |  |                            |       |                         
|                                     |  | 2003                       |       | 2002                     |  | 2003 |       | 2002
|                                     |  |                            |       |                          |  |      |       |     
|Net income (Cdn$ millions)           |  | $                          | 26    |                          |  | $    | 53    |      |  | $ | 59    |  |  | $ | 95    | 
|Net operating income (Cdn$ millions) |  | $                          | 60    |                          |  | $    | 67    |      |  | $ | 116   |  |  | $ | 120   | 
|Power delivered (gigawatt hours)     |  |                            | 1,589 |                          |  |      | 1,711 |      |  |   | 2,954 |  |  |   | 3,087 | 



|4 |  | Financial Results
|- |  | -----------------

For the six months ended June 30, 2003, Great Lakes Power Inc. reported net
operating income of $116 million, down from $120 million in the same period of
2002. The impact of lower hydrology in Quebec and New England was partly offset
by increased contribution from the companys hydroelectric power operations in
Ontario and Louisiana. Net income for the six months ended June 30, 2003 was
$59 million down from $95 million in the six months of 2002, primarily due to
lower hydrology and decreased investment income.

Net operating income for the three months ended June 30, 2003 was $60 million,
down from $67 million in the same period last year. Net income for the quarter
declined to $26 million from $53 million in the same period last year.



|4 |  | Achievements Year to Date
|- |  | -------------------------

During the first half of 2003, Great Lakes successfully completed the
integration of the 16 hydroelectric generating stations acquired in 2002 into
its operations while maintaining the companys low cost structure and ensuring
full operational availability of all plants. Great Lakes also completed
construction of two hydroelectric power stations during 2003, increasing its
total generating capacity to 1,684 megawatts (MW). The companys power
operations now include 39 generating stations located in a number of watersheds
across North America.

Robert A. Dunford Generating Station, Ontario

The 45 MW Robert A. Dunford Generating Station located on the Michipicoten
River near Wawa, Ontario, commenced commercial operations in April 2003. The
Dunford Generating Station was completed on schedule and on budget for $72
million, and replaces the older 27 MW High Falls station with a larger, more
efficient facility with increased peak power generating capability. The
completion of this project increased the companys generating capacity in
Ontario to 957 MW, solidifying its position as a key participant in Ontarios
competitive energy markets.

Pingston Creek Generating Station, British Columbia

The 30 MW Pingston Creek Generating Station in south-central British Columbia
near Revelstoke commenced commercial operations in May 2003. This $65 million
project was developed in a 50/50 joint venture with Canadian Hydro Developers
Inc. All of the stations power output will be sold to BC Hydro under a
20-year power sale contract signed in August 2002. The completion of this
station adds to



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the companys generating capacity in British Columbia and further enhances the
geographic diversification of its power operations.

Maine Power Interconnection, Maine

During May 2003, Great Lakes also completed the expansion of the power
interconnection between the companys Maine Power system, acquired in 2002, and
the New England power grid, through the construction of a new 115 kV, 24 mile
long transmission line. This US$17 million project increased the capacity of
the interconnection from 20 MW to 130 MW and greatly enhances the companys
ability to transmit Maine Powers generation output into the New England power
markets.

Issuance of $384 Million Secured Bond

In June, Great Lakes completed a $384 million 6.6% senior secured bond issue
due June 16, 2023. The bonds are rated A (low) by Dominion Bond Rating Service
and are secured by the Great Lakes Power Ltd. hydroelectric generation and
transmission assets in northern Ontario, which include 726 kilometres of
transmission lines and 12 hydroelectric generating stations. Proceeds are to be
used to redeem approximately $300 million of maturing debt and to finance
capital improvements. Backed primarily by merchant power sales rather than the
more traditional long-term power sales contracts, the financing reflects the
high quality of the companys hydroelectric generating and transmission assets
and the strength of its operations in northern Ontario.

Cedar Dam Generating Station

Great Lakes advanced the approval process for the construction of a new 9 MW
hydroelectric station on the Lièvre River to increase annual generation by 62
gigawatt hours (GWh) of energy. It is expected that the company will receive
final approvals for this $24 million project in the third quarter of 2003, for
expected completion in the summer of 2005. The station, to be built onto the
existing dam structure, will optimize use of existing water resources. All
power produced by this facility will be sold to Hydro Québec under a long-term
Power Purchase Agreement.



|4 |  | Other Initiatives
|- |  | -----------------

Construction continues on a US$32 million 25 MW natural gas-fired cogeneration
station in New Hampshire, expected to commence operation in the first quarter
of 2004. This station will provide electricity and steam to the pulp and paper
facilities located in Berlin/Gorham, New Hampshire, owned by Nexfor Inc., an
affiliate of the companys principal shareholder.

Construction also continues on three new hydroelectric generating stations in
southern Brazil: the 30 MW Passo do Meio project in the State of Rio Grande do
Sul, and the 16 MW Pedrinho and 15 MW Salto Natal projects stations in the
State of Paraná. These projects are expected to be substantially completed
during the third quarter of 2003.



|4 |  | Operating Results
|- |  | -----------------

Despite drier than expected conditions in Quebec and New England, the company
was still able to report net operating income of $116 million, compared to $120
million during the same period last year. Electricity generation in the first
six months of 2003 decreased marginally to 2,954 GWh compared to 3,087 GWh in
the same period last year, mainly due to lower generation at the companys
power operations in western Quebec. Net power revenue for the first six months
increased to $170 million in 2003 from $162 million in 2002.



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Operating and maintenance costs for the first six months of 2003 increased by
$5 million to $29 million and depreciation increased by $6 million to $27
million, as a result of the acquisition of new operations in Ontario, Maine and
New Hampshire during 2002.

Revenue from investments and other income, which consists of dividends from the
companys investments and securities portfolios, interest on loans receivable
and other fee income, was $36 million for the first six months of 2003, down
from $51 million in 2002 due to lower average interest rates and balances.

Power delivered and net operating income by operating segment for the quarter
and year to date compared to the same periods in 2002 are shown below:

|                        |  |                            |       |                          |  |      |       |      |  |   |       |  |  |   |       | 
|----------------------- |  | -------------------------- | ----- | ------------------------ |  | ---- | ----- | ---- |  | - | ----- |  |  | - | ----- | 
|                        |  | Three months ended June 30 |       | Six months ended June 30
|                        |  |                            |       |                         
|                        |  | 2003                       |       | 2002                     |  | 2003 |       | 2002
|                        |  |                            |       |                          |  |      |       |     
|Power Delivered         |  |                            |       |                          |  |      |       |      |  |   |       |  |  |   |       | 
|(gigawatt hours)        |  |                            |       |                          |  |      |       |      |  |   |       |  |  |   |       | 
|Ontario                 |  |                            | 772   |                          |  |      | 699   |      |  |   | 1,558 |  |  |   | 1,304 | 
|Quebec                  |  |                            | 344   |                          |  |      | 529   |      |  |   | 573   |  |  |   | 1,000 | 
|Northeast United States |  |                            | 158   |                          |  |      | 130   |      |  |   | 261   |  |  |   | 178   | 
|Other Power Operations  |  |                            | 315   |                          |  |      | 353   |      |  |   | 562   |  |  |   | 605   | 
|                        |  |                            |       |                          |  |      |       |      |  |   |       |  |  |   |       | 
|Total                   |  |                            | 1,589 |                          |  |      | 1,711 |      |  |   | 2,954 |  |  |   | 3,087 | 
|                        |  |                            |       |                          |  |      |       |      |  |   |       |  |  |   |       | 
|Net Operating Income    |  |                            |       |                          |  |      |       |      |  |   |       |  |  |   |       | 
|(Cdn$ millions)         |  |                            |       |                          |  |      |       |      |  |   |       |  |  |   |       | 
|Ontario                 |  | $                          | 29    |                          |  | $    | 31    |      |  | $ | 65    |  |  | $ | 55    | 
|Quebec                  |  |                            | 7     |                          |  |      | 17    |      |  |   | 15    |  |  |   | 37    | 
|Northeast United States |  |                            | 4     |                          |  |      | 3     |      |  |   | 6     |  |  |   | 5     | 
|Other Power Operations  |  |                            | 20    |                          |  |      | 16    |      |  |   | 30    |  |  |   | 23    | 
|                        |  |                            |       |                          |  |      |       |      |  |   |       |  |  |   |       | 
|                        |  | $                          | 60    |                          |  | $    | 67    |      |  | $ | 116   |  |  | $ | 120   | 
|                        |  |                            |       |                          |  |      |       |      |  |   |       |  |  |   |       | 



|4 |  | Outlook
|- |  | -------

Since the beginning of 2002, Great Lakes has increased its generating capacity
by 693 MW through the acquisition of 16 existing hydroelectric generating
facilities in Ontario, Maine and New Hampshire and the completion of two new
hydroelectric generating stations in Ontario and British Columbia. This
expansion positions the company to increase power generation levels in 2003
compared to prior years with a return to more normal levels of precipitation in
eastern North America. Great Lakes is aggressively seeking to increase returns
by optimizing the use of its facilities as new development projects and
acquisitions are brought on stream.

The company continues to explore further acquisition opportunities in the North
American power generation industry. The preference is for long-life
hydroelectric generating facilities with water storage reservoirs. The company
will also consider acquiring thermal generating stations, with a knowledgeable
partner where appropriate, at significant discounts to their replacement costs.

/s/  Edward C. Kress
Edward C. KressChairman

August 19, 2003



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Consolidated Balance Sheet

|                            |                               |          |       |              |  |   |       |       | 
|--------------------------- | ----------------------------- | -------- | ----- | ------------ |  | - | ----- | ----- | 
|(unaudited)                 |                               | June 30, |       | December 31,
|Cdn$ millions               |                               | 2003     |       | 2002        
|                            |                               |          |       |             
|Assets                      |                               |          |       |              |  |   |       |      
|                            | Cash and cash equivalents     |          | $     | 5            |  |   | $     | 10    | 
|                            | Accounts receivable and other |          |       | 315          |  |   |       | 186   | 
|                            | Securities                    |          |       | 422          |  |   |       | 590   | 
|                            | Long-term investments         |          |       | 559          |  |   |       | 559   | 
|                            | Power generating assets       |          |       | 2,142        |  |   |       | 2,155 | 
|                            |                               |          |       |              |  |   |       |      
|                            |                               | $        | 3,443 |              |  | $ | 3,500 |      
|                            |                               |          |       |              |  |   |       |      
|Liabilities                 |                               |          |       |              |  |   |       |      
|                            | Accounts payable and other    |          | $     | 146          |  |   | $     | 158   | 
|                            | Property specific borrowings  |          |       | 970          |  |   |       | 905   | 
|                            | Corporate term debentures     |          |       | 510          |  |   |       | 593   | 
|Future income tax liability |                               |          | 124   |              |  |   | 120   |      
|Minority interests          |                               |          | 338   |              |  |   | 350   |      
|Shareholders equity        |                               |          | 1,355 |              |  |   | 1,374 |      
|                            |                               |          |       |              |  |   |       |      
|                            |                               | $        | 3,443 |              |  | $ | 3,500 |      
|                            |                               |          |       |              |  |   |       |      



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Consolidated Statement of Income

|                                            |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |     |  
|------------------------------------------- | --------------------------------------------------------- | ---- | -------------------------- | ---- | ------------------------ | ---- | ---- | ---- | - | - | ---- | --- | - | - | ---- | --- | -
|                                            |                                                           |      | Three months ended June 30 |      | Six months ended June 30
|(unaudited)                                 |                                                           |      |                            |     
|Cdn$ millions, except per share amounts     |                                                           | 2003 |                            | 2002 |                          | 2003 |      | 2002
|                                            |                                                           |      |                            |      |                          |      |      |     
|Net power revenue                           |                                                           | $    | 87                         |      |                          | $    | 90   |      |   | $ | 170  |     |   | $ | 162  |    
|Expenses                                    |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    
|                                            | Operating and maintenance                                 |      |                            | 15   |                          |      |      | 14   |   |   |      | 29  |   |   |      | 24  |  
|                                            | Fuel purchases                                            |      |                            | 8    |                          |      |      | 4    |   |   |      | 17  |   |   |      | 8   |  
|                                            | Cash taxes and other                                      |      |                            | 4    |                          |      |      | 5    |   |   |      | 8   |   |   |      | 10  |  
|                                            |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    
|Net operating income                        |                                                           |      | 60                         |      |                          |      | 67   |      |   |   | 116  |     |   |   | 120  |    
|Investment and other income                 |                                                           |      | 17                         |      |                          |      | 27   |      |   |   | 36   |     |   |   | 50   |    
|                                            |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    
|                                            |                                                           |      | 77                         |      |                          |      | 94   |      |   |   | 152  |     |   |   | 170  |    
|Other expenses                              |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    
|                                            | Interest                                                  |      |                            | 23   |                          |      |      | 20   |   |   |      | 45  |   |   |      | 40  |  
|                                            | Depreciation                                              |      |                            | 13   |                          |      |      | 12   |   |   |      | 27  |   |   |      | 21  |  
|                                            | Minority interests                                        |      |                            | 6    |                          |      |      | 6    |   |   |      | 7   |   |   |      | 10  |  
|                                            | Administrative costs                                      |      |                            | 5    |                          |      |      | 3    |   |   |      | 10  |   |   |      | 4   |  
|                                            | Non-cash items                                            |      |                            | 4    |                          |      |      |     |   |   |      | 4   |   |   |      |    |  
|                                            |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    
|                                            |                                                           |      | 51                         |      |                          |      | 41   |      |   |   | 93   |     |   |   | 75   |    
|                                            |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    
|Net income                                  |                                                           | $    | 26                         |      |                          | $    | 53   |      |   | $ | 59   |     |   | $ | 95   |    
|                                            |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    
|Net income per common share                 |                                                           | $    | 0.21                       |      |                          | $    | 0.41 |      |   | $ | 0.47 |     |   | $ | 0.75 |    
|                                            |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    
|                                           
|Consolidated Statement of Retained Earnings
|                                           
|                                            |                                                           |      | Three months ended June 30 |      | Six months ended June 30
|(unaudited)                                 |                                                           |      |                            |     
|Cdn$ millions                               |                                                           | 2003 |                            | 2002 |                          | 2003 |      | 2002
|                                            |                                                           |      |                            |      |                          |      |      |     
|Retained earnings                           |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    
|                                            | Balance, beginning of period                              |      | $                          | 536  |                          |      | $    | 470  |   |   | $    | 523 |   |   | $    | 448 |  
|                                            | Net income                                                |      |                            | 26   |                          |      |      | 53   |   |   |      | 59  |   |   |      | 95  |  
|                                            | Distributions to holders of common
shares and equivalents |      |                            | (20  | )                        |      |      | (20  | ) |   |      | (40 | ) |   |      | (40 | )
|                                            |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    
|                                            | Balance, end of period                                    |      | $                          | 542  |                          |      | $    | 503  |   |   | $    | 542 |   |   | $    | 503 |  
|                                            |                                                           |      |                            |      |                          |      |      |      |   |   |      |     |   |   |      |    



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Consolidated Statement of Cash Flows

|                                        |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |      |     |  
|--------------------------------------- | ------------------------------------------------ | ------------------------------------------- | --- | -------------------------- | --- | ------------------------ | --- | ---- | --- | - | --- | ---- | --- | - | ---- | ---- | --- | -
|                                        |                                                  |                                             |     | Three months ended June 30 |     | Six months ended June 30
|(unaudited)                             |                                                  |                                             |     |                           
|Cdn$ millions                           |                                                  | 2003                                        |     | 2002                       |     | 2003                     |     | 2002
|                                        |                                                  |                                             |     |                            |     |                          |     |     
|Cash flow from operations               |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|                                        | Net income                                       |                                             | $   | 26                         |     |                          | $   | 53   |     |   | $   | 59   |     |   | $    | 95   |    
|                                        | Add non-cash items                               |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |      |    
|                                        |                                                  | Depreciation                                |     |                            | 13  |                          |     |      | 12  |   |     |      | 27  |   |      |      | 21  |  
|                                        |                                                  | Other                                       |     |                            | (10 | )                        |     |      | 2   |   |     |      | (16 | ) |      |      | (4  | )
|                                        |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|Cash flow from operations               |                                                  |                                             | 29  |                            |     |                          | 67  |      |     |   | 70  |      |     |   | 112  |     
|                                        | Net change in non-cash working
capital and other |                                             |     | 25                         |     |                          |     | (16  | )   |   |     | (27  | )   |   |      | (23  | )  
|                                        |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|                                        |                                                  |                                             | 54  |                            |     |                          | 51  |      |     |   | 43  |      |     |   | 89   |     
|                                        |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|Financing and shareholder distributions |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|                                        | Borrowings                                       |                                             |     | 373                        |     |                          |     | 197  |     |   |     | 399  |     |   |      | 328  |    
|                                        | Debt repayments                                  |                                             |     | (364                       | )   |                          |     | (28  | )   |   |     | (366 | )   |   |      | (36  | )  
|                                        | Issuance of Income Fund units                    |                                             |     |                           |     |                          |     | 103  |     |   |     |     |     |   |      | 103  |    
|                                        | Distributions:                                   |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |      |    
|                                        |                                                  |  Great Lakes Hydro Income Fund
unitholders |     |                            | (12 | )                        |     |      | (5  | ) |     |      | (19 | ) |      |      | (10 | )
|                                        |                                                  |  Common shares and equivalents             |     |                            | (20 | )                        |     |      | (20 | ) |     |      | (40 | ) |      |      | (40 | )
|                                        |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|                                        |                                                  |                                             | (23 | )                          |     |                          | 247 |      |     |   | (26 | )    |     |   | 346  |     
|                                        |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|Investing                               |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|                                        | Securities sales                                 |                                             |     | 90                         |     |                          |     |     |     |   |     | 169  |     |   |      |     |    
|                                        | Long-term investments                            |                                             |     |                           |     |                          |     |     |     |   |     |     |     |   |      | 7    |    
|                                        | Loans and other receivables                      |                                             |     | (81                        | )   |                          |     | 89   |     |   |     | (102 | )   |   |      | 263  |    
|                                        | Power generating assets                          |                                             |     | (53                        | )   |                          |     | (372 | )   |   |     | (89  | )   |   |      | (682 | )  
|                                        |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|                                        |                                                  |                                             | (44 | )                          |     |                          | 283 |      |     |   | (22 | )    |     |   | (412 | )   
|                                        |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|Cash and cash equivalents               |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|                                        | Increase (decrease)                              |                                             |     | (13                        | )   |                          |     | 16   |     |   |     | (5   | )   |   |      | 23   |    
|                                        | Balance, beginning of year                       |                                             |     | 18                         |     |                          |     | 17   |     |   |     | 10   |     |   |      | 10   |    
|                                        |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     
|                                        | Balance, end of period                           |                                             |     | 5                          |     |                          |     | 33   |     |   |     | 5    |     |   |      | 33   |    
|                                        |                                                  |                                             |     |                            |     |                          |     |      |     |   |     |      |     |   |      |     



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|4  |  | Notes to Consolidated Financial Statements
|-- |  | ------------------------------------------
|  
|1. |  | SUMMARY OF ACCOUNTING POLICIES            

The accompanying unaudited consolidated financial statements include the
accounts of the company consolidated with the accounts of all its subsidiaries.
Reference is made to the companys most recently issued Annual Report, which
included information necessary or useful to understanding the companys
businesses and financial statement presentations. In particular, the companys
significant accounting policies and practices were presented as Note 1 to the
Consolidated Financial Statements included in that report. The companys
accounting policies and methods of their application are consistent with those
of the most recent annual financial statements, except as may be described
elsewhere in these financial statements.

The quarterly financial statements are unaudited. Financial information in this
Interim Report reflects any adjustments (consisting only of normal recurring
adjustments) that are, in the opinion of management, necessary to a fair
statement of results for the interim periods in accordance with generally
accepted accounting principles.

The results reported in these consolidated financial statements should not be
regarded as necessarily indicative of results that may be expected for the
entire year.

The company is incorporated under the laws of Ontario and develops, owns and
operates hydroelectric and other power generating facilities principally in
Canada. The company also conducts investment activities, which include the
receipt of interest and dividends on the companys financial assets as well as
gains realized on investment transactions.



|2. |  | CHANGES IN ACCOUNTING POLICY
|-- |  | ----------------------------

Effective January 1, 2003, the company adopted, without restatement of the
prior period comparative financial statements, the new accounting standards
issued by the Canadian Institute of Chartered Accountants on the Disclosure of
Guarantees.



|3. |  | GUARANTEES
|-- |  | ----------

In the normal course of operations, the company and its consolidated
subsidiaries execute agreements that provide for indemnification and guarantees
to third parties in transactions such as business dispositions, business
acquisitions, sales of assets and sales of services. The company has also
agreed to indemnify its directors and certain of its officers and employees.
The nature of substantially all of the indemnification undertakings prevents us
from making a reasonable estimate of the maximum potential amount we could be
required to pay third parties as the agreements do not specify a maximum amount
and the amounts are dependent upon the outcome of future contingent events, the
nature and likelihood of which cannot be determined at this time. Historically,
neither the company nor its consolidated subsidiaries have made significant
payments under such indemnification agreements.

The company provides guarantees from time to time as described in Note 14 of
the annual financial statements. There have been no material changes, for the
period ended June 30, 2003, to the disclosures related to the guarantees as
reported in the most recent annual financial statements.



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|4. |  | SHAREHOLDERS EQUITY
|-- |  | --------------------

The company is authorized to issue an unlimited amount of common shares, of
which the following were issued and outstanding:

|                                               |  |         |       |             |  |   |       | 
|---------------------------------------------- |  | ------- | ----- | ----------- |  | - | ----- | 
|                                               |  | June 30 |       | December 31
|Cdn$ millions                                  |  | 2003    |       | 2002       
|                                               |  |         |       |            
|101,383,135 (2001  101,383,135) Common shares |  | $       | 603   |             |  | $ | 603   | 
|Retained earnings                              |  |         | 542   |             |  |   | 523   | 
|Cumulative translation adjustment              |  |         | (38   | )           |  |   |      | 
|                                               |  |         |       |             |  |   |       | 
|                                               |  |         | 1,107 |             |  |   | 1,126 | 
|Subordinated convertible debentures            |  |         | 248   |             |  |   | 248   | 
|                                               |  |         |       |             |  |   |       | 
|                                               |  | $       | 1,355 |             |  | $ | 1,374 | 
|                                               |  |         |       |             |  |   |       | 

The subordinated convertible debentures mature September 30, 2013 and bear
interest at the prime rate subject to a minimum of 6% and a maximum of 8%.



|5. |  | COMPARATIVE FIGURES
|-- |  | -------------------

Certain of the prior years figures have been reclassified to conform to the
2003 presentation.



|6. |  | NET POWER REVENUE
|-- |  | -----------------

The company reports power revenue net of the power purchases that were required
under a regulated Ontario market prior to May 2002 (2003  nil, 2002  $14
million).



Note: This Interim Report contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The words believe,
expect, anticipate, intend, estimate and other expressions which are
predictions of or indicate future events and trends and which do not relate to
historical matters identify forward-looking statements. Reliance should not be
placed on forward-looking statements because they involve known and unknown
risks, uncertainties and other factors, which may cause the actual results,
performance or achievements of the company to differ materially from
anticipated future results, performance or achievements expressed or implied by
such forward-looking statements. Factors that could cause actual results to
differ materially from those set forth in the forward-looking statements
include general economic conditions, interest rates, availability of equity and
debt financing and other risks. The company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as a result of
new information, future events or otherwise.



---

8



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##### 





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|4 |  | Profile
|- |  | -------

Great Lakes Power Inc. is an independent power producer with operations and
developments located mainly in North America. Our power operations, which
operate under the name Brascan Power, include 38 hydroelectric generating
stations and one natural gas-fired cogeneration plant with a combined
generating capacity of 1,684 megawatts. Our current operations generate on
average 7,000 gigawatt hours of electricity annually and have water storage
capacity of 1,767 gigawatt hours.

Great Lakes is a wholly-owned subsidiary of Brascan Corporation (TSX: BNN.A,
NYSE: BNN).

Power Operations

|                        |                               |  |            |    |            |  |           |    |  |  |             |     | 
|----------------------- | ----------------------------- |  | ---------- | -- | ---------- |  | --------- | -- |  |  | ----------- | --- | 
|                        |                               |  | Generating |    | Generating |  | Installed
|                        |                               |  | Stations   |    | Units      |  | Capacity 
|                        |                               |  |            |    |            |  |          
|                        |                               |  |            |    |            |  |           |    |  |  | (megawatts)
|Ontario                 |                               |  |            |    |            |  |           |    |  |  |             |    
|                        | Great Lakes Power             |  |            | 12 |            |  |           | 21 |  |  |             | 349 | 
|                        | Mississagi Power              |  |            | 4  |            |  |           | 8  |  |  |             | 488 | 
|                        | Valerie Falls Power           |  |            | 1  |            |  |           | 2  |  |  |             | 10  | 
|                        | Lake Superior Power(1)        |  |            | 1  |            |  |           | 3  |  |  |             | 110 | 
|                        |                               |  |            |    |            |  |           |    |  |  |             |    
|                        |                               |  | 18         |    |            |  | 34        |    |  |  | 957         |    
|Quebec                  |                               |  |            |    |            |  |           |    |  |  |             |    
|                        | Lièvre River Power            |  |            | 3  |            |  |           | 10 |  |  |             | 238 | 
|                        | Pontiac Power                 |  |            | 2  |            |  |           | 7  |  |  |             | 28  | 
|                        |                               |  |            |    |            |  |           |    |  |  |             |    
|                        |                               |  | 5          |    |            |  | 17        |    |  |  | 266         |    
|Northeast United States |                               |  |            |    |            |  |           |    |  |  |             |    
|                        | Maine Power                   |  |            | 6  |            |  |           | 31 |  |  |             | 126 | 
|                        | New Hampshire Power           |  |            | 6  |            |  |           | 21 |  |  |             | 31  | 
|                        |                               |  |            |    |            |  |           |    |  |  |             |    
|                        |                               |  | 12         |    |            |  | 52        |    |  |  | 157         |    
|Other Power Operations  |                               |  |            |    |            |  |           |    |  |  |             |    
|                        | Powell River Energy           |  |            | 2  |            |  |           | 7  |  |  |             | 82  | 
|                        | Pingston Creek                |  |            | 1  |            |  |           | 2  |  |  |             | 30  | 
|                        | Louisiana HydroElectric Power |  |            | 1  |            |  |           | 8  |  |  |             | 192 | 
|                        |                               |  |            |    |            |  |           |    |  |  |             |    
|                        |                               |  | 4          |    |            |  | 17        |    |  |  | 304         |    
|                        |                               |  |            |    |            |  |           |    |  |  |             |    
|TOTAL                   |                               |  | 39         |    |            |  | 120       |    |  |  | 1,684       |    
|                        |                               |  |            |    |            |  |           |    |  |  |             |    



---

|(1) |  | Natural gas-fired cogeneration station
|--- |  | --------------------------------------



|4 |  | Head Office
|- |  | -----------

Great Lakes Power Inc.
Suite 300, P.O. Box 762
BCE Place, 181 Bay Street
Toronto, Ontario M5J 2T3
Telephone: 416-363-9491
Facsimile: 416-363-2856