Vancouver, BC - November 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 nine month
periods ended September 30, 2010.
TOBA MONTROSE UPDATE
On November 1, 2010, Peter Kiewit Sons Co, the contractor for Toba
Montrose General Partnership ("TMGP"), achieved substantial completion
and TMGP assumed full operational control of the East Toba and Montrose
hydroelectric generation and transmission facilities ("Toba Montrose").
The Toba Montrose project will generate average net annual energy or
710,000 to 730,000 megawatt-hours ("MWh"). TMGP's operations team is
fully trained and will be resident on site on a 24/7 basis to ensure
safe, reliable and efficient operations.
On May 27, 2010, TMGP commenced selling electricity to BC Hydro and
Power Authority ("BC Hydro") under a 35 year Electricity Purchase
Agreement ("EPA") from electricity generated by Toba Montrose and on
August 5, 2010, TMGP became eligible to receive ecoEnergy funding of $10
per MWh of electricity generated by Toba Montrose and sold to BC Hydro
for 10 years.
During the second and third quarter of 2010, TMGP sold $33.4 million of
electricity generated by Toba Montrose and was eligible to receive $1.8
million in ecoEnergy grants. Prior to the Toba Montrose substantial
completion date of November 1, 2010, TMGP recorded revenue from
electricity sales and eligible ecoEnergy grants as an adjustment to the
capital cost of Toba Montrose. Beginning on November 1, 2010, TMGP
commenced to recognize electricity sales and eligible ecoEnergy grants
as revenue in its Statement of Operations.
TMGP is a 60/40 partnership between GE Energy Financial Services (a unit of GE) and Plutonic Power Corporation.
DOKIE WIND PROJECT UPDATE
The Dokie Wind Project, located 1,100 kilometres northeast of Vancouver,
near Chetwynd, BC, will use 48 Vestas V90 wind turbines and will
generate average net annual energy of 320,000 - 340,000 MWh. Completion
of construction and commencement of electricity sales to BC Hydro under
a 25 year EPA are scheduled for early 2011.
Turbine erection is scheduled to be completed in November, 2010.
Mechanical completion of the erected turbines commenced during the third
quarter 2010, and pre-commissioning of mechanically complete turbines
is underway. The substation construction is complete, and has entered
the pre-commissioning stage. The 230 kV transmission line is now
energized, and two out of six 35 kV collector lines are providing
backfeed power to wind turbines for commissioning. Support from the
community has been very positive and Dokie General Partnership ("DGP")
continues to work with its First Nations partners, the Halfway River,
West Moberly and Saulteau First Nations and the McLeod Lake Indian Band.
DGP is a 49/51 partnership between GE Energy Financial Services (a unit of GE) and Plutonic Power Corporation.
For the third quarter ended September 30, 2010, the Company incurred a
net loss of $1.6 million ($0.03 net loss per common share) compared with
a net loss of $2.7 million ($0.06 net loss per common share) in the
same period in 2009. The Company's net loss for the quarter ended
September 30, 2010 is comprised of $1.9 million (September 30, 2009 -
$2.3 million) in net cash operating expenditures, and $0.2 million in
net non-cash operating gains (September 30, 2009 - $0.4 million net
non-cash operating losses), including share based compensation, loss on
disposal of investments, and an unrealized gain on the fair value
adjustment of interest rate swaps.
As at September 30, 2010, the Company had $10.7 million in consolidated
cash, $25.4 million in consolidated cash restricted to construction and
consolidated working capital of $24.4 million. Excluding its respective
proportionate 40% share of TMGP cash and working capital and 51% share
of DGP cash and working capital as at September 30, 2010, the Company
had $6.9 million in cash and $6.8 million in working capital.
As at September 30, 2010, the Company had recorded $272.7 million in
long term debt, $327.0 million in property plant and equipment and $5.9
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
September 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 http://www.plutonic.ca/s/FinancialReports.asp
About Plutonic Power Corporation
Plutonic Power identifies, develops and operates clean power projects in
a safe reliable and efficient manner. Plutonic Power strives to be a
Canadian-based leader in clean power. For more information, visit
Director, Investor Relations
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.