Canadian Hydro Developers, Inc.
TSX : KHD

Canadian Hydro Developers, Inc.

October 21, 2005 17:05 ET

Canadian Hydro Provides Update on Biomass Operations

CALGARY, ALBERTA--(CCNMatthews - Oct. 21, 2005) - Canadian Hydro Developers, Inc. (TSX:KHD) ("Canadian Hydro" or the "Company") announced today that for the three months ended September 30, 2005 ("Q3 2005"), the 25 MW Grande Prairie EcoPower® Centre generated 13,349 MWh (32% of what was expected). Generation was lower than expected due to issues encountered with the plant's combustors, which the Company believes will be resolved in Q4 2005. While costs related to work on the combustors are expected to be covered under the manufacturer's warranty, lost revenues associated with generation are not. Because of this, financial results for Q3 2005 and YTD 2005 are expected to be lower than anticipated when released on November 14, 2005. The Company is currently reviewing its expectations for Q4 2005 and 2006 generation.

Canadian Hydro's remaining 16 renewable energy plants, representing 137 MW of its 162 MW portfolio, operated well during Q3 2005. These plants generated close to historic averages for YTD 2005, notwithstanding lower than average water flows at the Company's Upper Mamquam Hydroelectric Plant and Ontario hydroelectric plants in Q3 2005. With no one facility accounting for more than 25% of overall expected average long-term generation, the Company's diversified portfolio of renewable energy plants across three proven technologies and three provinces reduces production variability.



------------------------------------------------------------------------
Electricity Generation for All Plants - MWh(1)
Q3 2005 Q3 2004 Variance YTD 2005 YTD 2004 Variance
------------------------------------------------------------------------
Water 83,395 104,254 - 20% 229,575 224,344 + 2%
Wind 22,393 19,352 + 16% 79,203 77,306 + 3%
Biomass 13,349 - -% 15,119 - -%
Natural Gas - - -% - 287 - 100%
------------------------------------------------------------------------
Totals 119,137 123,606 - 4% 323,897 301,937 + 7%
------------------------------------------------------------------------

(1) Reflecting the Company's net interest.


Canadian Hydro is a developer, owner and operator of 17 power generation facilities totaling net 162 MW in operation and has an additional 67.5 MW currently under construction. The generation portfolio is diversified across three technologies (water, wind and biomass) in the provinces of British Columbia, Alberta and Ontario. 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: 79,543,873

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

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