Canadian Hydro Developers, Inc.

Canadian Hydro Developers, Inc.

December 23, 2008 08:58 ET

Canadian Hydro Receives Favourable Review Panel Decision for Dunvegan Hydroelectric Project

CALGARY, ALBERTA--(Marketwire - Dec. 23, 2008) - Canadian Hydro Developers, Inc. (TSX:KHD) (Canadian Hydro) announced today that its wholly-owned subsidiary, Glacier Power Inc. has received a favourable Review Panel decision to proceed with its 100 MW Dunvegan Hydroelectric Project (Dunvegan) located in northwestern Alberta on the Peace River. The Panel determined Dunvegan is in the public interest, would be a stable and reliable source of green power and will be a net benefit to the province. This low-head, run-of-river hydro project was subject to a joint federal-provincial panel hearing with the Alberta Utilities Commission, the Natural Resources Conservation Board and the Federal Government under the Canadian Environmental Assessment Act, which concluded on September 26, 2008.

Dunvegan, once constructed, will generate approximately 600,000 MWh per year of electricity and Renewable Energy Certificates (RECs), enough to power over 80,000 average homes. Construction is expected to occur over four years and generate approximately 500 person-years of employment. Over the next year, Canadian Hydro plans to obtain all permits required to proceed to construction, complete a detailed design of the project, finalize construction costs and the project schedule, and market the power and RECs on a long-term basis. Dunvegan is currently estimated to cost between $500 and $600 million, however, Canadian Hydro plans to update this estimate once detailed design is complete. Canadian Hydro anticipates funding this project in the near-term through free cash flow from operations and debt financing.

"The approval of Dunvegan reflects the culmination of nearly a decade of collaborative work by employees, consultants and the local community, along with the diligent oversight of provincial and federal regulators," said Kelly Matheson, Manager of Environmental Affairs at Canadian Hydro. "Dunvegan will feature innovative fish passageways for upstream and downstream migrating fish. We are proud of the industry leadership we have demonstrated in understanding both the fish migration and ice formation of the Peace River, and in transferring those understandings into the design of this unique low-impact project. The result is a world-class renewable energy resource that will be a 100-year asset for the community and province of Alberta."

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 power generation facilities in Canada totaling net 496 MW of capacity in operation, 385 MW in and nearing construction, and 1,632 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 under Environment Canada's EcoLogo(M) Program.

Common shares outstanding: 143,611,223

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 Dunvegan Hydroelectric Project; 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.
    John Keating
    (403) 269-9379