CALGARY, AB, Feb. 26, 2002 — Canadian Hydro Developers Inc. announced today that BC Hydro has offered to purchase all of the power generated from the 30 MW Pingston Hydroelectric Plant located in southeastern British Columbia being jointly developed with Brascan Power.
BC Hydro has also offered to purchase all of the generation from the proposed 25 MW Upper Mamquam Hydroelectric Project located in the Squamish area of British Columbia, north of Vancouver.
The 20-year contracts fall under BC Hydro’s Green Energy Projects program whereby BC Hydro has committed to meeting 10% of new load growth, to 2010, in British Columbia from green energy sources. Under this program, all independent power producers who were awarded contracts were required to demonstrate that they meet BC Hydro’s criteria for “green”, have adequate financing and are at a high state of readiness to undertake their project. Financial details of the transactions are confidential. The Company expects to sign contracts with BC Hydro in the next 60 days.
Construction on the Pingston Hydroelectric Plant continues to progress well and the plant is expected to be operational by the fourth quarter of 2002. This plant will generate approximately 160,000 MWh per year of emissions-free power. The proposed Upper Mamquam Hydroelectric Project is expected to be operational in 2004 and will also be “run-of-river”.
“Canadian Hydro is impressed with BC Hydro implementing a low-impact renewable portfolio standard for new generation in British Columbia,” said John Keating, CEO of Canadian Hydro. “These 20-year contracts will provide the Company and investors with predictable, long-term cash flow from these projects, as well as garnering a premium price for the green component of the power.”
Canadian Hydro is a developer, owner and operator of thirteen existing electrical generating facilities: nine “run-of-river” hydroelectric plants, three wind plants and one natural gas-fired plant totalling 88.9 MW net to the Company’s interest. In addition, the Pingston Hydroelectric Plant (15 MW net) is currently under construction and approximately 223 MW are in various stages of permitting for construction in the next five years. All of the Company’s plants and projects are located in British Columbia, Alberta, and Ontario. Canadian Hydro’s wind and water plants are certified under the EcoLogo™ certification program.
Canadian Hydro is committed to the concept of low-impact power generation. Through its wind and run-of-river hydro facilities, Canadian Hydro is demonstrating that commitment to the benefit of the environment and its shareholders.