Canadian Hydro And TCI Renewables Awarded 116 MW Of Wind Power Contracts In Quebec

Calgary, Alberta - Venterre, a joint venture between Canadian Hydro Developers, Inc. and TCI Renewables Limited, announced recently that it has been awarded two, 20-year Electricity Supply Contracts from Hydro-Quebec Distribution for the supply of 116 MW from two wind projects. The power will come from the 66 MW New Richmond Wind Project ("New Richmond") and the 50 MW St. Valentin Wind Project ("St. Valentin").

New Richmond Wind Project
Located in the Regional County Municipality of Bonaventure in the Gaspe Peninsula, New Richmond will consist of 33, 2 MW, E82 Enercon wind turbines that will generate an estimated 178,700 MWh per year of renewable power. The anticipated capital cost of the project is $190 million. The target in-service date of this project is December 2012 and is subject to regulatory approvals, including approval from Le Regie de L'Energie, and financing.

St. Valentin Wind Project
Located in the Regional County Municipality of Haut-Richelieu, approximately 40 kilometres southeast of Montreal, St. Valentin will consist of 25, 2 MW E82 Enercon wind turbines that will generate an estimated 143,900 MWh per year of renewable power. The anticipated capital cost of the project is $160 million. The target in-service date of this project is December 2012 and is subject to regulatory approvals, including approval from Le Regie de L'Energie, and financing.

These PPA awards were the result of Venterre's September 2007 submission to HQD's October 2005 'Call for Tenders for Wind-Generated Electricity for a Total of 2,000 MW of Installed Capacity'. As the developer of the projects, TCI Renewables will continue to be the public interface for permits and approvals for the projects. As owner of the projects, Canadian Hydro will build and operate the projects. Financial terms of the joint venture are confidential.

As part of the PPA award for New Richmond, Canadian Hydro has agreed with HQD not to proceed with the up to 70 MW expansion of Le Nordais Wind Plant. Due to transmission line congestion in the Gaspe Peninsula, Canadian Hydro was given the choice by HQD to either accept the PPA for New Richmond or continue on with the potential expansion at Le Nordais. Based on analysis, Canadian Hydro determined it was most prudent to proceed with New Richmond, which also provides further diversification to Canadian Hydro's wind asset portfolio in Quebec.

"These contracts are significant achievements for Canadian Hydro and further reinforces our strategic entrance into Quebec," said John Keating, CEO of Canadian Hydro. "We commend Hydro-Quebec Distribution and the government of Quebec for the vision and foresight demonstrated in planning for the future electricity needs of all residents of the province and the important part that renewable energy plays in meeting these needs. We would also like to thank TCI Renewables for their insight and capability in making these projects a reality."

"Success in this competitive environment is a great achievement for TCI Renewables as a recent entrant in the Canadian market," said Brett O'Connor, Operations Director of TCI Renewables. "These contract awards are the result of the dedication and effort by our stakeholders, staff, and partners. We look forward to continuing to work with Canadian Hydro, local communities, landowners, and elected representatives in delivering the New Richmond and St. Valentin Wind Projects. These projects will bring significant economic benefits to the host communities and further establish Quebec as an international leader in wind energy generation."

SOURCE: Hydro Developers, Inc. and TCI Renewables Limited