Run of River Power Inc.
TSX VENTURE : ROR

Run of River Power Inc.

August 04, 2006 16:00 ET

Run of River Power Discusses Raffuse Creek Submission

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 4, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES

Run of River Power (TSX VENTURE:ROR) ("Run of River") - The Corporation's CFO and a director met yesterday with BC Hydro to discuss the reason(s) why the 9.9 MW Raffuse Creek project tendered to BC Hydro's 2006 Call for Power was not awarded a Power Purchase Agreement. BC Hydro indicated that the rejection related to a clerical deficiency in the submission and not for any other reason.

Notwithstanding that the tender process did not contemplate an appeal mechanism and given the clerical nature of the deficiency, the Corporation feels an appropriate measure may be to approach the BC Utilities Commission in an effort to obtain relief. In the event this is unsuccessful, other possible courses of action have been identified to obtain relief, which cannot disclosed at this time.

Other options for the project include resubmitting it to BC Hydro's next Call for Power expected in 2007, or to build the plant on a merchant basis, where the power would be sold through a power broker, such as Powerex, on a spot market basis.

Run of River has a good relationship with BC Hydro. The Corporation currently delivers approximately 40,000 MWh of electricity to them from the 7.6 MW Brandywine Creek facility. Jako Krushnisky, Run of River's CEO, stated, "BC Hydro is in a position to judge our reliability and professionalism as a power provider and we intend to make our approach on this matter in good faith, to find a co-operative mutually beneficial outcome for both BC Hydro and Run of River."

About Run of River Power Inc.

Run of River Power Inc. is an alternative energy development company. Its hydroelectric facility at Brandywine Creek produces approximately 40,000 MWh of electricity per year or power for approximately 4,000 homes and sells the power to BC Hydro on a long-term 20 year contract. Run of River intends to develop an additional 150 MW of installed capacity through 11 project located in the adjacent Mamquam and Upper Pitt River watersheds located near Whistler, B.C.

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

Contact Information

  • Run of River Power Inc.
    Jako Krushnisky
    President and CEO
    (604) 946-9232
    or
    Run of River Power Inc.
    David Speck
    Investor Relations
    (416) 368-8464
    www.runofriverpower.com