Canadian Hydro Developers, Inc.

Canadian Hydro Developers, Inc.

April 22, 2009 15:35 ET

Canadian Hydro Acknowledges Major Milestones at Annual General Meeting

CALGARY, ALBERTA--(Marketwire - April 22, 2009) - Canada's largest renewable energy company, Canadian Hydro Developers (TSX:KHD), held its annual general meeting on Earth Day, acknowledging major milestones despite worldwide economic upheaval.

"The company is financially strong, with no equity needed for our current construction projects totaling $1.3 billion, and debt financing in the near term already in place," said Canadian Hydro CEO, John Keating. "At the same time, we are not immune to the global financial crisis and its impact on our shares."

Keating qualified that since December 31, 2007, the company has trended consistently with power income funds and even outperformed mid-cap and small-cap developers in the renewable energy industry around the world.

Over 75% of power generated by Canadian Hydro's 20 run-of-river hydro, wind and biomass EcoPower® Centres is sold at prices fixed under long-term contracts, making Canadian Hydro a conservative choice for lenders and investors alike, Keating told shareholders.

"With the current economic climate, we expect that governments will significantly ramp up spending on infrastructure projects to re-energize the economy," he said. "Each of the provinces we operate in continues to actively support the development of low-impact renewable energy sources that can help in creating and stabilizing jobs in rural areas."

The company completed Canada's largest wind plant, the 199.5 MW Melancthon EcoPower® Centre, and started construction of the 197.8 MW Wolfe Island Wind Project. On the hydroelectric side, construction has begun for two run-of-river projects in British Columbia - Bone Creek and Clemina Creek - totaling 29 MW. The company also received approval from a joint federal/provincial review panel for its proposed 100 MW Dunvegan Hydroelectric Project, which was a significant milestone. As of April 20, 2009, the Dunvegan Hydro Development Act received royal assent from the Alberta legislature authorizing the construction and operation of the hydro development.

"Our strategy of growing the company has resulted in higher revenue, cash flow and earnings before interest, taxes, depreciation and amortization (EBITDA) in 2008," said Keating. "We increased our generation from 922 GWh in 2007 to 1,066 GWh in 2008, which is a new record for Canadian Hydro."

Looking forward, Keating told shareholders that the focus for 2009 will be completing the Wolfe Island wind project by end of June. During the past week, the last of 86 turbines have been erected and commissioning is now underway.

"With Melancthon and Wolfe Island doubling our capacity, we expect to become a different company capable of self-financing larger and larger projects from our own balance sheet, which is expected to reduce our need to issue additional common shares to continue to grow," said Keating. "We're well on our way to achieving our vision of becoming Canada's premier independent producer of green power."

About Canadian Hydro Developers

Canadian Hydro Developers, Inc. is committed to Building a Sustainable Future®. The Company is the largest and most diversified developer, owner and operator of 20 renewable energy generation facilities in Canada totaling net 496 MW of capacity in operation, 383 MW in and nearing construction and 1,525 MW in development. The renewable generation portfolio is diversified across three technologies (water, wind and biomass) in the provinces of British Columbia, Alberta, Ontario, and Quebec. This portfolio is unique in Canada as all facilities are certified, or slated for certification, under Environment Canada's EcoLogo(M) Program.

Common shares outstanding: 143,661,223

Advisory Respecting Forward-Looking Statements:

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following : (i) the expected annual generation and useful life of the Company's EcoPower® Centres; and (ii) other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.

The forward-looking information and statements contained in this news release reflect several material factors, expectations and assumptions including without limitation: (i) commodity prices, foreign currency exchange rates and interest rates; (ii) supply and demand for electricity; (iii) schedules and timing of certain projects and the Company's strategy for growth; (iv) the Company's future operating and financial results; (v) treatments under governmental regulatory regimes and tax, environmental and other laws; and (vi) the timing of the delivery of power generation assets under construction contracts.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements. The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revised them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.

The Toronto Stock Exchange has neither reviewed nor approved this news release.

Contact Information

  • Canadian Hydro Developers, Inc. - Media Relations
    Lindsey Moen
    Communications Coordinator
    (403) 802-2099 or Cell: (403) 510-4631
    Canadian Hydro Developers, Inc. - Investor Relations
    Kathy Boutin
    Vice President of Finance
    (403) 298-0256