GE, Plutonic Power Move Closer to Purchasing Largest Wind Power Project Under Construction in British Columbia
VANCOUVER, BRITISH COLUMBIA and STAMFORD, CONNECTICUT – Sept. 23, 2009 – GE Energy Financial Services, a unit of GE (NYSE:GE), and Plutonic Power Corporation (TSX:PCC) have moved a step closer to purchasing the 144-megawatt Dokie Ridge Wind Project, the largest wind farm under construction in British Columbia, from EarthFirst Canada Inc. GE and Plutonic have completed their due diligence, waived initial due diligence conditions and have committed to purchase the Dokie project subject to satisfaction or waiver of closing conditions. GE and Plutonic have formed a partnership through which they intend to own and operate the project, located 1,100 kms northeast of Vancouver.The Dokie project would represent GE Energy Financial Services’ and Plutonic’s first wind energy investment in Canada and an expansion of their relationship from hydroelectric power development into wind energy.
The Dokie project consists of the fully permitted and partially built 144-megawatt Dokie Phase 1 project and the rights to expand to 300 megawatts. As partners, GE and Plutonic or their affiliates would jointly provide equity and seek project debt financing to complete construction and operate the project. The estimated construction cost of the project is C$225 million. Other financial details are being finalized.
EarthFirst has reported that the 144-megawatt Dokie project, once completed, would generate 340 gigawatt-hours annually; enough electricity to meet the annual needs of 34,000 homes and avoid more than 229,000 tonnes of carbon dioxide emissions from a coal plant – the equivalent of taking 44,000 cars off the road.
EarthFirst obtained court-ordered protection from its creditors under Canada’s Companies’ Creditors Arrangement Act, and yesterday the Dokie partners informed the Court of Queens Bench of Alberta, Judicial Centre of Calgary of their waiver of initial due diligence conditions. GE Energy Financial Services and Plutonic plan to complete the acquisition of the Dokie project in early November, with completion of construction estimated in early 2011.
A GE affiliate will hold 49 percent and a Plutonic affiliate will hold 51 percent of the Dokie partnership, which has signed and put into escrow an amended and restated electricity purchase agreement with BC Hydro. Among other conditions, the transaction is subject to the BC Utilities Commission’s acceptance of the electricity purchase agreement, an agreement to obtain renewable energy incentives in Canada’s ecoENERGY program and arrangement of debt financing. In keeping with its commitment to good community citizenship, the partnership has received consents for the assignment of EarthFirst’s memorandums of understanding with the West Moberly, Halfway River and McLeod Lake First Nations. The partnership has signed a letter of understanding with the Saulteau First Nation and looks forward to working with all First Nations.
In addition to the Dokie project, GE Energy Financial Services and Plutonic are partnering on three hydroelectric projects in British Columbia: the 196-megawatt East Toba River Montrose Creek project-under construction since July 2007-the proposed 166-megawatt Upper Toba Valley Project and the proposed 1027-megawatt Bute Inlet Project. The companies bid Upper Toba Valley and Bute into BC Hydro’s 2008 Call for Power issued in November 2008.
About GE Energy Financial Services
GE Energy Financial Services’ experts invest globally with a long-term view, backed by the best of GE’s technical know-how, financial strength and rigorous risk management, across the capital spectrum, in one of the world’s most capital-intensive industries, energy. GE Energy Financial Services helps its customers and GE grow through new investments, strong partnerships and optimization of its more than US$22 billion in assets. In renewable energy, GE Energy Financial Services is growing its portfolio of more than US$4 billion in assets in wind, solar, biomass, hydro and geothermal power. GE Energy Financial Services is based in Stamford, Connecticut. For more information, visit www.geenergyfinancialservices.com.
GE (NYSE:GE) is a diversified global infrastructure, finance and media company that is built to meet essential world needs. From energy, water, transportation and health to access to money and information, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company’s Web site at http://www.ge.com. GE is Imagination at Work.
About Plutonic Power Corporation
Plutonic Power’s vision is to provide leadership and create a legacy through the development of renewable, reliable, clean energy projects. Its proposed Green Power CorridorTM, comprised of 42 generation facilities (including the 2 facilities being constructed by the Toba Montrose General Partnership), could have the capacity to meet the annual energy needs of about 660,000 homes and offset more than 4.4 million tons of CO2 emissions every year – the equivalent of taking more than 850,000 cars off the road. Build out of the Green Power CorridorTM, including the current construction of the $660 million, 196 megawatt East Toba River and Montrose Creek run-of-river hydroelectric project, could create approximately 6,500 person-years of employment. Plutonic Power is committed to working in partnership with First Nations, stakeholder groups and local communities in the development of all of its projects. By developing its suite of projects, Plutonic Power will help British Columbia realize its goal of becoming electricity self-sufficient by 2016 utilizing 90% clean domestic generation sources, will create employment opportunities and will play a significant role in the fight against climate change.
For more information, please contact
GE Energy Financial Services
Plutonic Power Corporation
604-669-4999 or Cell: 604-880-0073
Plutonic Power Corporation
604-669-4999 or Cell: 603-314-3362