Tonbridge Power Inc.
TSX VENTURE : TBZ

Tonbridge Power Inc.

November 05, 2009 16:01 ET

Tonbridge Power Starts Project 2: Executes Cooperation Agreement With Gaelectric North America for New Transmission Line in Montana

TORONTO, ONTARIO--(Marketwire - Nov. 5, 2009) - Tonbridge Power Inc. (TSX VENTURE:TBZ) ("Tonbridge" or the "Company"), is pleased to announce it has entered into an agreement with wind power developer, Gaelectric North America Inc. ("Gaelectric") to begin detailed feasibility work on a new transmission line in Montana. 

"This is an important milestone for our Company," said Johan van't Hof, Tonbridge's Chief Executive Officer. "With MATL successfully financed and under construction, our team is turning its attention to several transmission project opportunities that we have uncovered. This next line is our top choice."

The project, referred to as the "Green Line", will be approximately 100 miles in length and is Tonbridge's second transmission line project. The proposed Green Line would connect the Company's MATL transmission line, which is currently under construction, with Bonneville Power Administration's transmission system on the 500kV Colstrip transmission line (the "Colstrip line") at or west of Townsend or Garrison, Montana. The Colstrip line is the major "electricity highway" that runs East to West out of Montana and enables renewable and other power to reach load centers in the Pacific Northwest region. 

Tonbridge will undertake to allocate at least 500 MW of firm transmission to Gaelectric in consideration for payment of mutually agreed development costs. The formal allocation of this capacity would occur through a FERC regulated process resulting in firm transmission shipping rights. In this respect, Gaelectric would become an "Anchor Shipper" and would receive its development contributions back through contracted transmission tariff reductions in the future.

On August 26, 2009, Tonbridge made inter-connection requests to Bonneville Power Administration for 1,000MW each at Garrison and Townsend, Montana.

The Green Line project is expected to proceed through three major phases of development before it can become operational:

- The first phase, "Feasibility", is anticipated to take 8-12 months. The Feasibility phase involves numerous independent assessments of all the commercial, technical, regulatory, financial, routing and timeline elements of the project and ultimately is designed to support a decision to proceed to development.

- The second phase, called "Development and Regulatory Approval", is expected to take 15-18 months. During the Development and Regulatory Approval phase, the Company will define the technical scope and size of the line, post for auction any remaining capacity, obtain required permits and regulatory approvals, define final right of ways within permits, conclude engineering, procurement and construction contracts, execute operations and maintenance arrangements and arrange for required project capital through senior financing arrangements. 

- The final phase, "Construction", encompasses formal notice to proceed, mobilization, final engineering and design, procurement, final land assembly, erection of all facilities, testing and declaration of the commercial operation date. 

The current agreement between the Company and Gaelectric relates only to the Feasibility Phase of the Green Line project. Tonbridge and Gaelectric will collectively contribute up to US$500,000 for third party expenses in addition to staff labor from both companies as required to complete the Feasibility Phase.

If the Feasibility Phase is successful, the parties have agreed to negotiate a development agreement. There is no assurance that the Green Line will be determined to be feasible, that a development agreement will be executed or that the Green Line will be built. 

If the Green Line is built, it is expected to have a positive impact on the MATL line, as it should relieve the congestion for southbound electricity flows by, in effect, extending the MATL line southward to interconnect with the Colstrip line.

Robert van Beers, Chief Operating Officer and Head of Project Development for Tonbridge remarked, "We have been working to get to this point for a long time. With the wind resources available in Montana, it is essential that real and commercial solutions for transmission be brought to fruition in order to ensure renewable generation becomes a reality. We are delighted to collaborate with a partner as capable and as committed as Gaelectric." Gaelectric is a group of companies, each active in the different fields of Renewable Power Generation and Energy Storage with experienced teams specialized in all aspects of project planning, permitting, finance, engineering and management. Gaelectric is active in Northern Ireland, the Republic of Ireland and North America where Gaelectric operates regional development offices.

For more information about Gaeletric visit: http://www.gaelectric.ie/

Tonbridge Power Inc., is a Toronto-based developer of electrical transmission assets, whose principal asset is a 100% interest in Montana Alberta Tie Ltd. Shares of the Company are traded on the TSX Venture Exchange under the symbol "TBZ."

Should you wish to receive company notices via email, please notify us at: info@tonbridgepower.com

Forward-Looking Information

This news release contains "forward-looking information", within the meaning of applicable Canadian securities legislation, concerning the Company's prospective "Green Line" project and matters related thereto. Forward-looking information includes, but is not limited to, information with respect to the study and development of new transmission power lines, the allocation of costs, ascertaining the feasibility of such lines, the allocation of electrical capacity along such lines and the required steps to develop, approve and construct such lines, including financing arrangements and related matters. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "proposed", "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "should", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include, but are not limited to: risks related to the outcome of the feasibility work on the prospective transmission line, the ability of the parties to enter into a development agreement if the feasibility phase is successful, risks related to ability to develop, finance and construct transmission lines, delays in obtaining governmental approvals, permits or project financing, requirements for additional capital, government regulation, environmental risks as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2008 and its management's discussion & analysis for the period ended June 30, 2009, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information that is included herein, except in accordance with applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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