Vancouver, BC -- August 10, 2010 -- Plutonic Power Corporation
(the "Company") (PCC: TSX) announced today a progress update and its
financial results in Canadian Dollars for the three and six month
periods ended June 30, 2010.
TOBA MONTROSE UPDATE
Toba Montrose General Partnership ("TMGP"), a partnership between the
Company and GE Energy Financial Services, a unit of GE (NYSE:GE), has
commenced selling electricity to BC Hydro and Power Authority ("BC
Hydro") under an Electricity Purchase Agreement ("EPA") from power
generated by the East Toba River and Montrose Creek generation
facilities. TMGP received confirmation from BC Hydro that Toba Montrose
has met its guaranteed commercial operations date ("COD") commitment
under the EPA. Both facilities are now operating at full capacity while
their commissioning continues.
The test operations of the two facilities remain under the control of
TMGP's contractor Peter Kiewit Sons Co. ("Kiewit"), who has constructed
Toba Montrose under a fixed price construction contract. TMGP will sell
all of the power generated from the two facilities to BC Hydro under a
35-year agreement. Substantial completion and handover of the
facilities to TMGP is expected by the end of the third quarter after
further operator training, testing and other commissioning activities.
Until substantial completion is achieved, revenues from power sales will
be credited against capital costs. As a bonus for early completion,
Kiewit is entitled to a portion of electricity sales from the East Toba
River facility prior to July 1, 2010, and from the Montrose Creek
facility prior to November 1, 2010. TMGP expects the Toba Montrose
facilities to be substantially complete before the end of the third
quarter of 2010.
DOKIE WIND PROJECT UPDATE
During the fourth quarter of 2009, the Company and GE formed Dokie
General Partnership ("DGP"), to acquire, finance, complete the
construction of and operate, the Dokie Wind Project. DGP acquired the
partially completed and fully permitted Dokie Wind Project from
EarthFirst Canada Inc. DGP arranged debt financing of $175 million and
the Company and GE contributed $52.5 million of project equity, to
finance the completion of the Dokie Wind Project. The Dokie Wind
Project, located 1,100 kilometres northeast of Vancouver, near Chetwynd,
BC, will use 48 Vestas V90 wind turbines and is expected to generate a
long term average of 340,000 megawatt hours of electricity annually.
Completion of construction and commencement of electricity sales to BC
Hydro are scheduled for early 2011 under a 25 year EPA.
Mortenson Canada Corporation mobilized to site in early January, 2010 to
commence the balance of construction on the Dokie Wind Project.
Deliveries of the remaining 40 turbines to a lay down area in Chetwynd,
along with all site roads and wind turbine foundations were completed by
the end of the second quarter. Turbine erection for the remaining 43
units commenced in late June 2010 and this will be the primary site
activity during the third quarter of 2010. The substation, the 234 KV
transmission line and the 35 KV collector lines are scheduled for
completion in the fourth quarter of 2010. Support from the community
has been very positive and construction activity continues to be on
For the second quarter ended June 30, 2010, the Company incurred a net
loss of $1.8 million ($0.03 net loss per common share) compared with a
net loss of $2.1 million ($0.05 net loss per common share) in the same
period in 2009. The Company's net loss for the quarter ended June 30,
2010 is comprised of $1.8 million (June 30, 2009 - $2.4 million) in net
cash operating expenditures, and $15,369 in net non-cash operating gains
(June 30, 2009 - $214,709), including share based compensation, loss on
disposal of investments, and an unrealized gain on the fair value
adjustment of interest rate swaps.
As at June 30, 2010, the Company had $13.0 million in consolidated cash,
$34.0 million in consolidated cash restricted to construction and
consolidated working capital of $32.9 million. Excluding its respective
proportionate 40% share of TMGP cash and working capital and 51% share
of DGP cash and working capital as at June 30, 2010, the Company had
$8.5 million in cash and $8.5 million in working capital.
As at June 30, 2010, the Company had recorded $268.6 million in long
term debt, $317.0 million in property plant and equipment and $6.0
million in intangible assets, based on its 40% share in TMGP and 51%
share in DGP. The long term debt of TMGP and DGP are secured by the
assets of TMGP and DGP respectively and are non-recourse to the other
assets of the Company.
This financial summary should be read in conjunction with the Company's
June 30, 2010 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
About Plutonic Power Corporation
Plutonic is a Canadian based company developing and operating clean
power projects. Plutonic is a partner in 1,700,000 megawatt-hours per
year of hydro and wind projects. Commercial operations have now been
achieved at the first of two facilities in the Toba Montrose Project.
Active construction is also underway on the $227.5 million Dokie Wind
Project, diversifying Plutonic Power's clean power portfolio. For
additional information please contact:
Director, Investor Relations
Office: 604-669-4999 ext 1034
The TSX Exchange 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.