Countryside Power Income Fund
TSX : COU.UN

Countryside Power Income Fund

October 16, 2006 17:39 ET

Countryside Awarded Ontario Power Authority 20-Year Contract for Combined Heat and Power Generation

LONDON, ONTARIO--(CCNMatthews - Oct. 16, 2006) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Countryside Power Income Fund (TSX:COU.UN) today announced that its newly formed indirect subsidiary, Countryside London Cogeneration Corp., has been awarded a 20-year combined heat and power ("CHP") generation contract by the Ontario Power Authority ("OPA") as part of a competitive bidding process. As a result, the Fund will construct a new natural gas-fired cogeneration facility adjacent to its existing District Energy System based in London, Ontario. The new CHP facility will have up to 17 megawatts of electric power generation capacity and provide additional thermal capacity to support future growth of the district energy system.

The Fund will receive a stable revenue stream from the OPA for supplying its electric power output to the local grid after the CHP project begins commercial operation in mid-2008. The capital cost of the project is estimated at $27 million and is intended to be funded through Countryside's existing bank credit facility. Services to existing district energy customers in London will not be affected during construction.

"This CHP project achieves our strategy of harnessing the organic growth potential of our existing assets. We expect the expansion will be accretive to the Fund's distributable cash flow once it begins operations," said Goran Mornhed, President and Chief Executive Officer of Countryside Ventures LLC.

This project is part of an OPA initiative to procure 1,000MW of electricity through high-efficiency electricity combined heat and power projects (also know as co-generation) across Ontario. The initiative was designed to take advantage of situations where larger industries or groups of users require both electricity and thermal energy for industrial use, heating or cooling. Co-generation is considered one of the most efficient forms of electricity generation-getting the most overall power out an energy source.

"The Countryside project is important to achieving Ontario's long-term energy objectives," said Paul Bradley, Vice President of Electricity Resources at the Ontario Power Authority, the provincial agency charged with ensuring the province has adequate investment to achieve its electricity goals. "The project supplies much needed electricity, it demonstrates the high-efficiency use of resources and it highlights the role that the private sector can play in our energy future."

About Countryside Power Income Fund

Countryside Power Income Fund has investments in two district energy systems in Canada with a combined thermal and electric generation capacity of approximately 122 megawatts, and two gas-fired cogeneration plants in California with a combined power generation capacity of 94 megawatts. In addition, the Fund has an indirect investment in 22 renewable power and energy projects located in the United States, which currently have approximately 51 megawatts of electric generation capacity and which sold approximately 710,000 MMBtus of boiler fuel in 2005. The Fund's investment in the projects consists of loans to, and a convertible royalty interest in, U.S. Energy Biogas Corp.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Fund that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund's prospectus filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, the Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Further information can be found in disclosure documents filed by the Fund to Canadian securities regulatory authorities, available at www.sedar.com.


Contact Information