Northland Power Income Fund
TSX : NPI.UN

Northland Power Income Fund

June 09, 2005 09:18 ET

Northland Power Income Fund Completes Commissioning Of Mont Miller Wind Project In Gaspesie

MURDOCHVILLE, QUEBEC--(CCNMatthews - June 9, 2005) - Northland Power Income Fund (the "Fund")(TSX:NPI.UN) is pleased to announce today the opening of its new 54 megawatt Mont Miller wind power project in the Gaspesie region of Quebec. Mont Miller began delivering electricity in February and now all 30 Vestas turbines at the $95 million project have been fully commissioned and are providing electricity to Hydro-Quebec under the terms of a 21-year purchase power agreement. The project has already produced over 30,000 megawatt-hours of electricity, and annual production is forecast at over 195,000 MWh per year, enough electricity to supply 15,000 to 20,000 households. The Gaspesie region is rich in wind resources, and average daily wind speeds of over 9.5 meters per second were recorded during the past winter peak season.

John Brace, President of Northland Income Fund Management Inc. said, "We look forward to the Mont Miller wind project consistently generating and delivering environment-friendly energy to Hydro-Quebec's power grid and contributing approximately 10% of the Fund's distributable cash in its first year of full-scale operation. We are also pleased that long-term power purchase agreements with Hydro-Quebec have been executed for the sale of electricity from two more wind projects in the Gaspesie region with a total capacity of 250 megawatts. These two, much larger wind projects are currently under development by Northland Power Inc., and the Fund's Trustees are expected to consider investing in them in due course."

Wind energy is the fastest-growing form of electricity production in Canada. The Government of Canada will provide $20 million in funding over 10 years to the project through the Wind Power Production Initiative (WPPI) to encourage the growth of clean, renewable, reliable energy for Canadians.

"Northland Power Income Fund is to be congratulated for its vision and leadership in entering the new energy era," said R. John Efford, Minister of Natural Resources Canada. "This facility reflects the desire of Quebecers and all Canadians to protect our environment, address climate change and lead the world in the development and use of renewable energy technologies."

Quebec Minister of Natural Resources and Wildlife Pierre Corbeil said, "The commissioning of 54 megawatts of wind energy at Mont Miller in Murdochville contributes to clean and renewable energy production and to the diversification of Quebec's power generation facilities." He also praised the extraordinary efforts of all the workers involved in building the project last winter in extremely cold and windy conditions.

ABOUT THE FUND

Northland Power Income Fund indirectly owns interests in four power projects: three natural-gas- fired combined-cycle cogeneration power plants that efficiently and cleanly produce electricity and steam for sale and one wind power project. Two cogeneration plants are located in Ontario: the 120 megawatt (MW) Iroquois Falls facility, which has been wholly-owned by the Fund since its inception in 1997, and the 110 MW Kingston facility, of which the Fund now owns 50%. Through its 19% equity interest in Panda Energy Corp. (PEC) and loan to a PEC subsidiary, the Fund has an interest in the 230 MW Panda-Brandywine cogeneration plant located just outside Washington, D.C. Electricity produced from the cogeneration plants are sold under long-term power purchase agreements (PPAs) with creditworthy entities to ensure revenue stability, and long-term contracts assure the supply and price of natural gas, which is the Fund's largest cost. The 54 MW Mont Miller wind power project in the Gaspesie region of Quebec supplies electricity to Hydro-Quebec under the terms of a 21-year PPA.

The Fund's trust units and convertible debentures, which trade on the Toronto Stock Exchange under the symbols NPI.UN and NPI.DB respectively, are qualified investments and not considered foreign property for RRSPs and DPSPs under the Canadian Income Tax Act. The Fund has in place a distribution re-investment plan that allows unitholders who are residents of Canada to automatically have their monthly cash distributions re-invested in additional units. Participants do not pay any costs associated with the plan, including brokerage commissions. For further information or to join the plan, contact your financial advisor or broker.

FORWARD LOOKING STATEMENTS

This document may contains certain forward-looking statements. Although these forward-looking statements are based upon current expectations and assumptions, they are subject to numerous risks and uncertainties, certain of which are beyond the Fund's control. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of distributions, the Fund and unitholders will derive there from.

Contact Information

  • Northland Power Income Fund Management Inc.
    Barb Bokla
    Investor, Media and Public Relations
    (416) 962-6262 x156
    or
    Northland Power Income Fund Management Inc.
    Tony Anderson
    Chief Financial Officer
    (416) 962-6262 x120
    (416) 962-6266 (FAX)
    info@NPIFund.com
    www.NPIFund.com