VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/10/09 -- Plutonic Power Corporation (the Company) (TSX: PCC) announced today a progress update and its financial results in Canadian Dollars for the third quarter ended September 30, 2009.
On October 28, 2009, as part of its commitment to reduce greenhouse gases and become a clean energy powerhouse, the British Columbia (BC) Provincial Government provided direction to the BC Utilities Commission (BCUC) to end BC Hydro and Power Authority's (BC Hydro) reliance on the Burrard Thermal Generating Facility for electricity needs and to only use it for 900 megawatts (MW) of emergency capacity. This decision is expected to allow BC Hydro to continue to acquire up to 6,000 gigawatt hours (GWh) of cost-effective, clean and renewable power. This includes up to 5,000 GWh from the BC Hydro 2008 Clean Power Call for Tender.
On November 2, 2009, the BC Provincial Government announced it will establish a Green Energy Advisory Task Force, as committed in its August 2008 throne speech, and a new Cabinet Committee on Climate Action and Clean Energy to help advance the Province's climate action goals to reduce greenhouse gas emissions and build a greener economy that generates well paying jobs while maintaining high environmental standards for the permitting process and the operational phase of any project that gets built. The Green Energy Advisory Task Force will be comprised of four advisory task force groups, to report directly to the new Cabinet Committee. The mandate of the four advisory task force groups will include Procurement and Regulatory Reform; Carbon Pricing, Trading and Export Market Development; Community Engagement and First Nations Partnerships; and Resource Development. The Green Energy Advisory Task Force on Procurement and Regulatory Reform will recommend improvements to BC Hydro's procurement and regulatory regimes to enhance clarity, certainty and competitiveness in promoting clean and cost-effective power generation; and identify possible improvements to future clean power calls and procurement processes. The advisory task force groups will consist of clean-energy experts, energy consultants, renowned climate experts, leading academics, First Nation representatives and environmentalists. The members of these committees and terms of reference will be announced in the near future. All advisory task force groups will also undertake a comparative review of existing policies in other jurisdictions. The new cabinet committee will include the Premier, Minister of Energy, Mines and Petroleum Resources and other cabinet ministers whose portfolios are important to the development of clean energy, existing members of the climate action committee and the chairs of BC Hydro and BC Transmission Corporation.
BOARD OF DIRECTOR UPDATES
Effective November 9, 2009 founding Board member Michael Volker and Grigor Cook resigned from the Board. Mike Volker helped Plutonic transition and grow from its founding over the last eight years.
Donald McInnes, Vice-Chair and CEO, said, "I would like to thank Mike for his help in founding Plutonic and playing a leadership role in our Board Governance practices. On behalf of our shareholders we wish Mike all the best as he continues to build new companies."
Additionally in order to reduce management representation on the Board at this time, Grigor Cook has also resigned his Board seat. Grig Cook, CEO of the Dokie General Partnership will carry on as part of the executive management team at Plutonic.
Previously the Company announced the appointment of Phil Fontaine and David O'Brien to the Company's Board of Directors.
TOBA MONTROSE HIGHLIGHTS
The Company's 196 MW, $660 million East Toba River and Montrose Creek run-of-river hydroelectric project (Toba Montrose), being built with our partner GE Energy Financial Services (GE) by Toba Montrose General Partnership (TMGP) in conjunction with our First Nations partners, the Klahoose, Sliammon and Sechelt First Nations, is fully financed, on-budget and on-schedule to reach commercial operation during 2010. All the electricity to be generated from Toba Montrose will be sold to BC Hydro under a 35-year sales contract.
Milestones during the third quarter of 2009 include:
-- 74% construction completion of the East Toba plant, including placement of 10,000 cubic meters of concrete at the powerhouse, 4,000 cubic meters of concrete at the intake, and 73% completion of the penstock -- 45% construction completion of the Montrose plant, including placement of 2,000 cubic meters of concrete at the intake and 64% completion of the penstock -- 79% construction completion of the transmission line, including near-completion of the foundations, 74% of the poles, and 34% of the conductor
DOKIE RIDGE WIND PROJECT
During the third quarter of 2009, the Company and GE completed their due diligence, waived initial due diligence conditions and have committed to purchase the Dokie Project subject to satisfaction or waiver of closing conditions, which include BCUC's acceptance of an amended BC Hydro EPA, an agreement to obtain renewable energy incentives in Canada's ecoENERGY program and arrangement of debt financing. The Company and GE formed a partnership through which they intend to own and operate the Dokie Project. The Company and a GE affiliate hold a 51% and 49% respective interest in the Dokie General Partnership. The Company and GE anticipate completing the purchase of the Dokie Project during November 2009.
For the third quarter ended September 30, 2009, the Company incurred a net loss of $2.7 million ($0.06 net loss per common share) compared with a net loss of $3.0 million ($0.07 net loss per common share) in the same period in 2008. The Company's net loss for the quarter ended September 30, 2009 is comprised of $2.3 million (September 30, 2008 - $1.4 million) in cash operating expenditures, and $0.4 million in non-cash items, including share based compensation, share based guarantee fees, and an unrealized gain on the fair value adjustment of interest rate swaps. For the quarter ended September 30, 2008, the net loss included $1.6 million of non-cash items noted above and an unrealized loss on the fair value adjustment of interest rate swaps.
Excluding its proportionate 40% share of TMGP cash and working capital as at September 30, 2009, the Company had $10.4 million in cash and $8.9 million in working capital.
As at September 30, 2009, the Company had recorded $137.2 million in long term debt, $179.8 million in property plant and equipment and $5.2 million in intangible assets, based on its 40% share in TMGP. The long term debt is secured by the assets of TMGP and is nonrecourse to the other assets of the Company.
This financial summary should be read in conjunction with the Company's September 30, 2009 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 projects. Its proposed Green Power Corridor(TM), comprised of 42 generation facilities (including the 2 facilities being constructed by Toba Montrose General Partnership), could have the capacity to meet the annual energy needs of about 660,000 homes and offset more than 4.4 million tons of CO2 emissions every year - the equivalent of taking more than 850,000 cars off the road. Build out of the Green Power Corridor(TM), including the current construction of the $660 million, 196 megawatt East Toba River and Montrose Creek run-of-river hydroelectric project, could create approximately 6,500 person-years of employment. Plutonic Power is committed to working in partnership with First Nations, stakeholder groups and local communities in the development of all of its projects. By developing its suite of projects, Plutonic Power will help British Columbia realize its goal of becoming electricity self-sufficient by 2016 utilizing 90% clean domestic generation sources, will create employment opportunities and will play a significant role in the fight against climate change.
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.
The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.
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