Vancouver, BC - November 14, 2008 - Plutonic Power's 196
megawatt, $660 million East Toba River-Montrose Creek run-of-river
hydroelectric project, being built through a partnership with GE Energy
Financial Services, is fully financed, on-budget and on-schedule to
reach commercial operation by mid-2010. The electricity generated from
this project is contracted to BC Hydro under a 35 year sales contract.
Noted milestones during the third quarter include:
"We are very pleased with the progress that the Toba Montrose
General Partnership, working with Peter Kiewit Sons on the ground, has
made to date," said Vice-Chair and CEO Donald McInnes. "With the
exception of a two week shut down over the holidays, work will continue
throughout the winter season."
- Full camp
operations achieved with capacity for 290 workers on a 24 hour
rotational schedule. Over 550,000 man hours have been worked to date at
site. Staff is comprised of over one third local employees, including
approximately 90 First Nations staff.
- Completion of all road and bridge access up to the intake sites of both the East Toba and Montrose facilities.
- 115 of 155 kilometres of transmission line right-of-way
cleared and 150 pole structures have been installed. Four kilometers of
powerline has been strung.
- Excavations are underway for both powerhouse foundations and trenches are being excavated for the penstocks.
- Diversion has been completed for the East Toba River facility.
- Fabrication of major infrastructure items is underway
including turbines in Austria, penstock sections in China and
bifurcation units in Quebec.
- 50% of total expected barge loads of material have been
completed to date, with 5 barges arriving in the Toba Valley in October.
Feasibility and permitting work continued through the quarter for both
the Upper Toba Valley and Bute Inlet Projects. In August, Plutonic
announced an expanded relationship with GE Energy Financial Services
that provided for two new partnerships to be formed between the parties
for the development of Upper Toba Valley and Bute Inlet. Plutonic and
GE Energy Financial Services have worked closely with contractor Peter
Kiewit Sons and the engineering firm of Knight Piesold for cost,
schedule and energy estimates to be used as a framework for bids
submission for the two projects in the 2008 BC Hydro Clean Power.
Plutonic and GE Energy Financial Services expect to bid both projects
into the call on November 25th.
Another significant achievement this quarter includes Plutonic Power
being honoured for the second year in a row with the Large Business of
the Year Award at the Powell River Chamber of Commerce Horizon Business
Third Quarter Results
Plutonic Power Corporation (PCC: TSX) has released its third quarter
2008 financial results in Canadian dollars, unless otherwise noted.
During the quarter ended September 30, 2008, the Company incurred a net
loss of $2.9 million ($0.07 net loss per share) compared with a net loss
of $1.1 million ($0.03 net loss per share) for the quarter ended
September 30, 2007. The Company's net loss for the quarter ended
September 30, 2008 is comprised of $1.5 million (2007 - $0.6 million) of
non-cash expenditures, including share based compensation, share based
guarantee fees, and an unrealized loss on the fair value adjustment of
interest rate swaps, and $1.4 million (2007 - $0.5 million) of cash
The Company incurred higher cash operating costs to support its share of
the joint bid to submit the Upper Toba Valley and Bute Inlet
run-of-river hydroelectric projects, which could consist of
approximately 1,000 megawatts of run-of-river capacity, into British
Columbia Hydro Authority's (BC Hydro) Clean Power Call Request for
Proposals (2008 RFP). BC Hydro issued the 2008 RFP on June 11, 2008 for
5,000 gigawatt hours per year of seasonal and hourly firm energy to
help ensure that the Province of British Columbia has sufficient
electricity to meet its electricity needs by 2016. BC Hydro has
selected November 25, 2008 as the deadline for submission of proposals
with EPA awards scheduled for mid April 2009 through June 2009.
As at September 30, 2008, the Company had consolidated cash of $53.3
million including $16.4 million in cash restricted for use in
construction activities for its Toba Montrose project. Consolidated
working capital, including cash restricted for use in construction
activities, was $43.8 million. Plutonic's partner in the Toba Montrose
General Partnership (TMGP), has fully funded the $100 million equity
bridge loan. This loan is to be converted into project equity upon
commencement of operations once the construction of the Toba Montrose
project is completed in 2010.
As at September 30, 2008, the Company had recorded $62.1 million in long
term debt, $88.1 million in property plant and equipment and $5.3
million in intangible assets, based on its 40% share in TMGP. The long
term debt is secured by the assets of the Toba Montrose General
Partnership and is nonrecourse to the other assets of the Company.
This financial summary should be read in conjunction with the Company's
September 30, 2008 unaudited consolidated interim financial statements
and Management's Discussion and Analysis, both of which are available on
www.sedar.com and on the Plutonic Power Corporation web site at http://www.plutonic.ca/s/FinancialReports.asp
About Plutonic Power Corporation
Plutonic Power's vision is to provide leadership and create a legacy
through the development of renewable, reliable, clean energy. Its
proposed Green Power Corridor(tm), comprised of 39 locations, including
the flagship $660 million, 196 MW East Toba River/Montrose Creek
run-of-river project currently under construction, have the design
capacity to generate enough energy to meet the annual needs of about
630,000 homes and create approximately 5,500 person years of employment.
Once built, the Green Power Corridor(tm) could offset an estimated 4
million tons of CO2 emissions every year - the equivalent to taking as
many as 650,000 vehicles off the road. Plutonic is committed to working
in partnership with First Nations, stakeholder groups and local
communities in the development of all of its run-of-river projects. By
developing its suite of projects, Plutonic Power will help British
Columbia realize its goals of becoming electricity self-sufficient by
2016 and utilizing 90% clean domestic generation sources and will play a
significant role in the fight against climate change.
For additional information please contact:
Office: 604-669-4999 ext 1034