Plutonic Power Corporation

Plutonic Power Corporation

November 14, 2008 13:23 ET

Plutonic Power Issues Progress Update and Third Quarter 2008 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2008) - Plutonic Power's (TSX:PCC) 196 megawatt, $660 million East Toba River-Montrose Creek run-of-river hydroelectric project, being built through a partnership with GE Energy Financial Services, is fully financed, on-budget and on-schedule to reach commercial operation by mid-2010. The electricity generated from this project is contracted to BC Hydro under a 35 year sales contract. Noted milestones during the third quarter include:

- Full camp operations achieved with capacity for 290 workers on a 24 hour rotational schedule. Over 550,000 man hours have been worked to date at site. Staff is comprised of over one third local employees, including approximately 90 First Nations staff.

- Completion of all road and bridge access up to the intake sites of both the East Toba and Montrose facilities.

- 115 of 155 kilometres of transmission line right-of-way cleared and 150 pole structures have been installed. Four kilometers of powerline has been strung.

- Excavations are underway for both powerhouse foundations and trenches are being excavated for the penstocks.

- Diversion has been completed for the East Toba River facility.

- Fabrication of major infrastructure items is underway including turbines in Austria, penstock sections in China and bifurcation units in Quebec.

- 50% of total expected barge loads of material have been completed to date, with 5 barges arriving in the Toba Valley in October.

"We are very pleased with the progress that the Toba Montrose General Partnership, working with Peter Kiewit Sons on the ground, has made to date," said Vice-Chair and CEO Donald McInnes. "With the exception of a two week shut down over the holidays, work will continue throughout the winter season."

Feasibility and permitting work continued through the quarter for both the Upper Toba Valley and Bute Inlet Projects. In August, Plutonic announced an expanded relationship with GE Energy Financial Services that provided for two new partnerships to be formed between the parties for the development of Upper Toba Valley and Bute Inlet. Plutonic and GE Energy Financial Services have worked closely with contractor Peter Kiewit Sons and the engineering firm of Knight Piesold for cost, schedule and energy estimates to be used as a framework for bids submission for the two projects in the 2008 BC Hydro Clean Power. Plutonic and GE Energy Financial Services expect to bid both projects into the call on November 25th.

Another significant achievement this quarter includes Plutonic Power being honoured for the second year in a row with the Large Business of the Year Award at the Powell River Chamber of Commerce Horizon Business Awards.

Third Quarter Results

Plutonic Power Corporation (TSX:PCC) has released its third quarter 2008 financial results in Canadian dollars, unless otherwise noted.

During the quarter ended September 30, 2008, the Company incurred a net loss of $2.9 million ($0.07 net loss per share) compared with a net loss of $1.1 million ($0.03 net loss per share) for the quarter ended September 30, 2007. The Company's net loss for the quarter ended September 30, 2008 is comprised of $1.5 million (2007 - $0.6 million) of non-cash expenditures, including share based compensation, share based guarantee fees, and an unrealized loss on the fair value adjustment of interest rate swaps, and $1.4 million (2007 - $0.5 million) of cash operating expenditures.

The Company incurred higher cash operating costs to support its share of the joint bid to submit the Upper Toba Valley and Bute Inlet run-of-river hydroelectric projects, which could consist of approximately 1,000 megawatts of run-of-river capacity, into British Columbia Hydro Authority's (BC Hydro) Clean Power Call Request for Proposals (2008 RFP). BC Hydro issued the 2008 RFP on June 11, 2008 for 5,000 gigawatt hours per year of seasonal and hourly firm energy to help ensure that the Province of British Columbia has sufficient electricity to meet its electricity needs by 2016. BC Hydro has selected November 25, 2008 as the deadline for submission of proposals with EPA awards scheduled for mid April 2009 through June 2009.

As at September 30, 2008, the Company had consolidated cash of $53.3 million including $16.4 million in cash restricted for use in construction activities for its Toba Montrose project. Consolidated working capital, including cash restricted for use in construction activities, was $43.8 million. Plutonic's partner in the Toba Montrose General Partnership (TMGP), has fully funded the $100 million equity bridge loan. This loan is to be converted into project equity upon commencement of operations once the construction of the Toba Montrose project is completed in 2010.

As at September 30, 2008, the Company had recorded $62.1 million in long term debt, $88.1 million in property plant and equipment and $5.3 million in intangible assets, based on its 40% share in TMGP. The long term debt is secured by the assets of the Toba Montrose General Partnership and is nonrecourse to the other assets of the Company.

This financial summary should be read in conjunction with the Company's September 30, 2008 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 39 locations, including the flagship $660 million, 196 MW East Toba River/Montrose Creek run-of-river project currently under construction, have the design capacity to generate enough energy to meet the annual needs of about 630,000 homes and create approximately 5,500 person years of employment. Once built, the Green Power Corridor™ could offset an estimated 4 million tons of CO2 emissions every year - the equivalent to taking as many as 650,000 vehicles off the road. Plutonic 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. By developing its suite of projects, Plutonic Power will help British Columbia realize its goals of becoming electricity self-sufficient by 2016 and utilizing 90% clean domestic generation sources and will 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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