Vancouver, BC -- March 15, 2011 -- Plutonic Power Corporation
(the "Company") (PCC: TSX) announced today a progress update and its
financial results in Canadian Dollars for the fourth quarter and year
ended December 31, 2010.
OVERVIEW
During 2010, the Company successfully transitioned from a development
stage company to an operating company with the East Toba River and
Montrose Creek ("Toba Montrose") run of river hydroelectric facilities
commencing the sale of electricity to BC Hydro and Power Authority ("BC
Hydro") under a 35 year Electricity Purchase Agreement ("EPA") in May
2010. The Company completed a strong 2010 with the Dokie Wind Farm
commencing generation of electricity in November 2010, as commissioning
continued in early 2011. In February 2011, the Dokie Wind Farm
commenced the sale of electricity to BC Hydro under a 25 year EPA.
TOBA MONTROSE UPDATE
On May 27, 2010, Toba Montrose General Partnership ("TMGP") commenced
selling electricity to BC Hydro under a 35 year EPA from electricity
generated by Toba Montrose and on August 5, 2010, TMGP became eligible
to receive ecoEnergy funding of $10 per megawatt-hours ("MWh") of
electricity generated by Toba Montrose and sold to BC Hydro for 10
years.
On November 1, 2010, Peter Kiewit Sons Co, the contractor for TMGP,
achieved substantial completion and TMGP assumed full operational
control of Toba Montrose. The Toba Montrose project is expected to
generate a long term annual average of 710,000 to 730,000 MWh of
electricity.
Seasonal forecasted production will be approximately as follows:
| Q1 (January -- March) | | 4% |
| Q2 (April -- June) | | 32% |
| Q3 (July -- September) | | 52% |
| Q4 (October -- December) | | 12% |
TMGP's operations team is fully trained and is resident on site on a
24/7 basis to ensure safe, reliable and efficient operations.
During the period May to October 2010, TMGP sold $37.4 million of
pre-substantial completion revenue from electricity sales generated by
Toba Montrose and was eligible to receive $2.3 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 recognizing
electricity sales of $2.2 million and eligible ecoEnergy grants of $0.2
million as revenue in its Statement of Operations.
TMGP is a 60/40 partnership between GE Energy Financial Services ("GE") and Plutonic Power Corporation.
DOKIE WIND PROJECT UPDATE
During 2010, Dokie General Partnership ("DGP") commenced construction of
the partially completed Dokie Wind Farm that it acquired in late 2009.
In February 2011, DGP commenced selling electricity generated by the
Dokie Wind Farm under its 25 year EPA with BC Hydro.
The Dokie Wind Farm, located 1,100 kilometres northeast of Vancouver,
near Chetwynd, BC, uses 48 Vestas V90 wind turbines and is expected to
generate a long term annual average of 320,000 -- 340,000 MWh of
electricity.
Seasonal forecasted production will be approximately as follows:
| Q1 (January -- March) | | 28% |
| Q2 (April -- June) | | 20% |
| Q3 (July -- September) | | 22% |
| Q4 (October -- December) | | 30% |
DGP is a 49/51 partnership between GE and Plutonic Power Corporation.
FINANCIAL RESULTS
For the fourth quarter ended December 31, 2010, the Company incurred a
net loss of $6.2 million ($0.10 net loss per common share) compared with
a net loss of $3.1 million ($0.05 net loss per common share) for the
quarter ended December 31, 2009. The Company's share of TMGP net loss
for the fourth quarter of 2010 was $2.0 million and included revenues
from Toba Montrose for November and December of $0.9 million. Water
flows, which are needed to generate electricity at Toba Montrose, are
seasonally low in November and December.
For the year ended December 31, 2010, the Company incurred a
consolidated net loss of $11.8 million ($0.18 net loss per common share)
compared with a consolidated net loss of $19.3 million ($0.40 net loss
per common share) in 2009. The Company's share of TMGP net loss for the
year ended December 31, 2010 was $1.2 million and included revenues
from Toba Montrose for November and December of $0.9 million. Water
flows, which are needed to generate electricity at Toba Montrose, are
seasonally low in November and December.
As at December 31, 2010, the Company had $14.9 million in consolidated
cash, $9.9 million in consolidated restricted cash, and consolidated
working capital of $8.6 million. Excluding its respective proportionate
40% share of TMGP cash and working capital and 51% share of DGP cash
and working capital as at December 31, 2010, the Company had $5.5
million in cash and $2.8 million in working capital.
As at December 31, 2010, the Company had recorded $272.7 million in long
term debt, $335.2 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
December 31, 2010 audited consolidated 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
UPDATE FOR 2011
Upper Toba Valley Project -- In March 2010, BC Hydro offered the Company
and GE an EPA for a modified Upper Toba Valley Project. This
represents a modification from the original bid from three power sites
to two, as a result of capacity constraints identified by BC Hydro on
their transmission line. With the change in size of the Upper Toba
Valley Project, the Company and GE are updating their assessment of the
project.
Dokie Wind Expansion Project - The Company holds a 51% interest in a
potential expansion of the Dokie Wind Farm ("Dokie Wind Expansion
Project"). GE holds the remaining 49% interest. The Company and GE are
preparing an assessment of the Dokie Wind Expansion Project scheduled
to be completed by the end of 2011.
ABW Solar - In January 2011, the Company announced that it had entered
into a further agreement with GE to buy a 50 mega-watt portfolio of
solar facilities ("ABW Solar") from First Solar. It is expected that
First Solar will complete the permitting of ABW Solar under the
Ontario's Renewable Energy Approval process in the spring of 2011, with
construction to begin by mid-2011 and construction to be completed in
early 2012. The Company and GE have formed the ABW Solar General
Partnership which will sell the electricity generated from ABW Solar to
the Ontario Power Authority under a 20-year EPA. On commencement of
commercial operations by ABW Solar, the Company has the option to make
an equity contribution of approximately $6 million to earn a 10%
interest in ABW Solar, and to serve as the projects' managing partner.
Merger with Magma Energy Corp. - In March 2011, the Company announced a
merger with Magma Energy Corp. ("Magma") to create Alterra Power Corp.
Under the terms of the arrangement agreement, each shareholder of the
Company will receive 2.38 common shares of Magma for each common share
held of the Company. Completion of the merger is conditional on
approval from the shareholders of both the Company and Magma Energy
Corp. at special shareholder meetings expected to be held in April 2011,
and satisfaction of other customary approvals, including regulatory,
stock exchange and court approvals.
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
leader in clean power. Plutonic's principal operating facilities are
the Toba Montrose Hydroelectric Project and the Dokie Wind Farm. These
assets are held in partnership with GE Energy Financial Services of
which Plutonic is the managing and operating partner. For more
information, visit www.plutonic.ca
Lisa May
Director, Investor Relations
Direct: 604-678-6743
Cell: 604-314-3362
lisa.may@plutonic.ca
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.
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