Plutonic Power Corporation

Plutonic Power Corporation

August 13, 2009 12:54 ET

Plutonic Power Issues Progress Update and Second Quarter 2009 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2009) - Plutonic Power Corporation (the Company) (TSX:PCC) announced today a progress update and its financial results in Canadian Dollars for the second quarter ended June 30, 2009.


On May 12, 2009, British Columbia Premier Gordon Campbell and the BC Liberal Party won the provincial election, giving them a third consecutive mandate to govern the Province. The BC Government has reiterated its commitment for the province to become a global clean energy powerhouse. The BC Government's plan to accomplish this includes achieving electricity self sufficiency for BC by the year 2016, with at least 90% of electricity coming from clean renewable sources, including run-of-river hydroelectric generation facilities. The election results provided the BC Government with a renewed mandate to continue to include private sector investment to achieve its self sufficiency and clean energy goals. In addition to fighting climate change leading to a reduced carbon world, this will significantly contribute as a critical economic driver of jobs and growth, especially in rural and remote communities.

The Company had anticipated that BC Hydro and Power Authority (BC Hydro) would conclude the 2008 Clean Power Call for Tender and award electricity purchase agreements (EPA) to successful bidders in the third quarter of 2009 after the approval of BC Hydro's 2008 long term acquisition plan (LTAP) by the BC Utilities Commission (BCUC). On July 27, 2009, BCUC issued its decision and rejected BC Hydro's LTAP as being deficient in several respects and included its opinion that the gas-fired Burrard Thermal Plant in Metro Vancouver should be used to produce more energy than was planned by BC Hydro. Subsequently, the Government of BC reaffirmed its goal of achieving electricity self-sufficiency for BC by 2016 through the development of new, renewable energy projects and further, expressed concerns about increasing the use of the Burrard Thermal Plant. The BC Government's 2008 Climate Action Plan targets a 33% reduction in greenhouse gases by 2020, and calls for the Burrard Thermal Plant, the single largest source of greenhouse gas emissions in BC, to be downgraded by 2014. BC Hydro also confirmed it does not have the intention to run the Burrard Thermal Plant more than previously used, which produced just 300 GWh of electricity last year or about 5% of the amount suggested by the BCUC decision.

BC Hydro and the Government of BC have not yet communicated their official responses to the BCUC's decision on BC Hydro's 2008 Request for Proposals. The Company anticipates clarification in the near future.


Plutonic Power's 196 megawatt (MW), $660 million East Toba River and Montrose Creek run-of-river hydroelectric project (Toba Montrose), being built with our partner GE Energy Financial Services Holding Company by the Toba Montrose General Partnership (TMGP) in conjunction with our First Nations partners, the Klahoose, Sliammon and Sechelt First Nations, is fully financed, on-budget and on-schedule to reach commercial operation during 2010. All the electricity to be generated from Toba Montrose will be sold to BC Hydro under a 35-year sales contract.

Milestones during the second quarter of 2009 include:

- Placement of 5,000 cubic meters of concrete at the East Toba powerhouse

- Installation of runner housings, distributors and bifurcation at the East Toba powerhouse

- Foundation excavations at the East Toba intake and placement of 1,000 cubic meters of concrete

- Placement and welding of 1,500 meters of penstock at East Toba and 500 meters of penstock at Montrose

- Construction of 90% of the transmission line foundations, 44% of the transmission structures, and 35% of the transmission conductor


Milestones during the second quarter of 2009 include:

- Received a Provincial Environmental Assessment Certificate for the Upper Toba Valley Project.

- The Federal Minister of Environment approved the Terms of Reference for the Bute Project's Federal environmental assessment process, which will be proceeding by way of panel review, together with the Project's Environmental Impact Assessment Guidelines.


The Company and GE Energy Financial Services are continuing to conduct due diligence on the Dokie Ridge Wind Project assets. No decision on the possible acquisition has been made.


For the second quarter ended June 30, 2009, the Company incurred a net loss of $2.2 million ($0.05 net loss per share) compared with a net loss of $3.4 million ($0.08 net loss per share) in the same period in 2008. The Company's net loss for the quarter ended June 30, 2009 is comprised of $2.4 million (June 30, 2008 - $1.6 million) of cash operating expenditures, offset by $0.2 million in non-cash items, including share based compensation, share based guarantee fees, and an unrealized gain on the fair value adjustment of interest rate swaps. During the quarter ended June 30, 2008, the net loss included $1.8 million of non-cash items noted above and an unrealized loss on the fair value adjustment of interest rate swaps.

Excluding its proportionate share of Toba Montrose cash and working capital as at June 30, 2009, the Company had $15.1 million in cash and $13.9 million in working capital.

As at June 30, 2009, the Company had recorded $112.0 million in long term debt, $157.7 million in property plant and equipment and $5.1 million in intangible assets, based on its 40% share in TMGP. The long term debt is secured by the assets of TMGP and is nonrecourse to the other assets of the Company.

This financial summary should be read in conjunction with the Company's June 30, 2009 unaudited consolidated interim financial statements and Management's Discussion and Analysis, both of which are available on and on the Plutonic Power Corporation web site at

About Plutonic Power Corporation

Plutonic Power's vision is to provide leadership and create a legacy through the development of renewable, reliable, clean energy. Its proposed Green Power Corridor™, comprised of 40 locations, not including the flagship $660 million, 196 MW East Toba River and Montrose Creek run-of-river hydro-electric project currently under construction, has the design capacity to generate enough energy to meet the annual needs of about 586,000 homes and create approximately 5,900 person years of employment. Once built, the Green Power Corridor™ could offset almost 4 million tons of CO2 emissions every year - the equivalent to taking as many as 760,000 vehicles off the road. Plutonic Power is committed to working in partnership with First Nations, stakeholder groups and local communities in the development of all of its run-of-river projects. Plutonic Power will help British Columbia realize its goals of becoming electricity self-sufficient by 2016, utilizing 90% clean domestic generation sources that will create employment opportunities and play a significant role in the fight against climate change.

Caution Regarding Forward-Looking Statements - This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf.

The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.

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