Vancouver, BC, August 3, 2007 - Plutonic Power Corporation (PCC -
TSX) has advised BC Hydro of its intention to exit the electricity
purchase agreement (EPA) for the 15 megawatt (MW) Rainy River
run-of-river project, due to unexpected complexities in the
environmental permitting process caused by the discovery of a number of
fish species in the area. Complexities in permitting have decreased
certainty around the timing for the project commercial operation date.
"Plutonic Power takes its environmental and contractual responsibilities
very seriously," said Donald McInnes, President of Plutonic Power. "The
company feels that while these issues have the potential to be
addressed, due to the uncertainty around timing, the best course of
action is to exit this agreement and refocus its efforts on the
development of the Green Power Corridor projects."
A significant issue arising in the environmental permitting process has
been the discovery of several fish species including salmon and
steelhead, above the project site. The presence of these in addition to
resident species in the projects proposed diversion reach were not
anticipated and have made obtaining permits exceedingly more difficult.
"Any future actions on Rainy River will take into account the need to
address these new complexities. Plutonic is currently reviewing a full
range of options for this project," added McInnes.
Plutonic Power was awarded an EPA for the 15 MW Rainy River project in
the 2006 call for power by BC Hydro, in addition to the 196 MW
Toba/Montrose project, on which construction is underway.
Plutonic Power is an emerging renewable energy producer in British
Columbia. Its proposed 31 development projects have a design capacity of
up to 1,600 MW with the potential to generate approximately 5,000 GWh
per annum of green energy - enough energy to meet the annual energy
needs of over 500,000 homes. These development projects represent the
largest inventory of undeveloped green energy projects in British
Columbia. Included in the 31 projects is the creation of the Green Power
Corridor, a series of non-storage hydroelectric projects in
southwestern BC, which hold the potential to catapult British Columbia
to the forefront of green energy generation in North America. The
completion of the Green Power Corridor would create approximately 4000
person years of employment.
Plutonic is committed to becoming the pre-eminent supplier of green
energy in British Columbia by working with First Nations, stakeholder
groups and local communities in the development of all its run-of-river
projects. This commitment will help British Columbia realize its goal of
becoming electricity self-sufficient by 2016 and meet demand utilizing
90% clean generation sources.
On behalf of the Board of Directors
PLUTONIC POWER CORPORATION
Donald McInnes, President
For additional information please contact:
Office: 604-669-4999 ext 1034
The TSX does not accept responsibility for the adequacy or accuracy of
this release. Caution Regarding Forward-Looking Statements - This news
release contains certain forward-looking statements, including
statements regarding the business and anticipated financial performance
of the Company. These statements are subject to a number of risks and
uncertainties. Actual results may differ materially from results
contemplated by the forward-looking statements. When relying on
forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other uncertainties
and should not place undue reliance on such forward-looking statements.
The Company does not undertake to update any forward looking statements,
oral or written, made by itself or on its behalf.