Canadian Hydro Developers, Inc.
TSX : KHD

Canadian Hydro Developers, Inc.
TCI Renewables Limited

TCI Renewables Limited

May 05, 2008 12:40 ET

Canadian Hydro and TCI Renewables Awarded 116 MW of Wind Power Contracts in Quebec

CALGARY, ALBERTA--(Marketwire - May 5, 2008) - Venterre, a joint venture between Canadian Hydro Developers, Inc. (TSX:KHD) ("Canadian Hydro") and TCI Renewables Limited ("TCI Renewables"), announced today that it has been awarded two, 20-year Electricity Supply Contracts (the "PPAs") from Hydro-Quebec Distribution ("HQD") for the supply of 116 MW from two wind projects. The power will come from the 66 MW New Richmond Wind Project ("New Richmond") and the 50 MW St. Valentin Wind Project ("St. Valentin").

New Richmond Wind Project

Located in the Regional County Municipality of Bonaventure in the Gaspe Peninsula, New Richmond will consist of 33, 2 MW, E82 Enercon wind turbines that will generate an estimated 178,700 MWh per year of renewable power. The anticipated capital cost of the project is $190 million. The target in-service date of this project is December 2012 and is subject to regulatory approvals, including approval from Le Regie de L'Energie, and financing.

St. Valentin Wind Project

Located in the Regional County Municipality of Haut-Richelieu, approximately 40 kilometres southeast of Montreal, St. Valentin will consist of 25, 2 MW E82 Enercon wind turbines that will generate an estimated 143,900 MWh per year of renewable power. The anticipated capital cost of the project is $160 million. The target in-service date of this project is December 2012 and is subject to regulatory approvals, including approval from Le Regie de L'Energie, and financing.

These PPA awards were the result of Venterre's September 2007 submission to HQD's October 2005 'Call for Tenders for Wind-Generated Electricity for a Total of 2,000 MW of Installed Capacity'. As the developer of the projects, TCI Renewables will continue to be the public interface for permits and approvals for the projects. As owner of the projects, Canadian Hydro will build and operate the projects. Financial terms of the joint venture are confidential.

As part of the PPA award for New Richmond, Canadian Hydro has agreed with HQD not to proceed with the up to 70 MW expansion of Le Nordais Wind Plant. Due to transmission line congestion in the Gaspe Peninsula, Canadian Hydro was given the choice by HQD to either accept the PPA for New Richmond or continue on with the potential expansion at Le Nordais. Based on analysis, Canadian Hydro determined it was most prudent to proceed with New Richmond, which also provides further diversification to Canadian Hydro's wind asset portfolio in Quebec.

"These contracts are significant achievements for Canadian Hydro and further reinforces our strategic entrance into Quebec," said John Keating, CEO of Canadian Hydro. "We commend Hydro-Quebec Distribution and the government of Quebec for the vision and foresight demonstrated in planning for the future electricity needs of all residents of the province and the important part that renewable energy plays in meeting these needs. We would also like to thank TCI Renewables for their insight and capability in making these projects a reality."

"Success in this competitive environment is a great achievement for TCI Renewables as a recent entrant in the Canadian market," said Brett O'Connor, Operations Director of TCI Renewables. "These contract awards are the result of the dedication and effort by our stakeholders, staff, and partners. We look forward to continuing to work with Canadian Hydro, local communities, landowners, and elected representatives in delivering the New Richmond and St. Valentin Wind Projects. These projects will bring significant economic benefits to the host communities and further establish Quebec as an international leader in wind energy generation."

About Canadian Hydro

Canadian Hydro Developers, Inc. is committed to Building a Sustainable Future®. The Corporation is a developer, owner, and operator of 20 power generation facilities totaling net 364 MW in operation, 517 MW in and nearing construction, and 1,562 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 EcoLogoM Program.

Common shares outstanding: 143,378,723

About TCI Renewables

TCI Renewables Limited is a privately owned, UK originated wind farm development business with offices in Oxford, Belfast and Montreal. The company has approximately 300 MW in development in the UK and a further 700 MW in development in Canada and the USA. Headquartered in Oxford, UK, the company has been active in the Canadian market since 2005 and in the USA since 2006.

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 energy estimate, in-service date, and capital cost of New Richmond and St. Valentin; (ii) the ability to obtain regulatory approvals and the timing of those approvals, including approval from Le Regie de L'Energie, for New Richmond and St. Valentin; and (iii) 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) treatment under governmental regulatory regimes and tax, environmental and other laws; (vi) the timing of the delivery of power generation assets under construction contracts; and (vii) New Richmond and St. Valentin.

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 revise 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 press release.

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