KHD Canadian Hydro wins 20-year energy supply contract
2004-11-25 09:49 ET - News Release
Mr. John Keating reports
CANADIAN HYDRO AWARDED 20 YEAR CONTRACT TO SELL WIND POWER TO ONTARIO GOVERNMENT
Canadian Hydro Developers Inc. has been awarded a 20-year renewable energy supply contract from the Ontario Electricity Financial Corp., a statutory body of the Ontario government, for the supply of 67.5 megawatts of electricity from wind resources. The power will come from phase 1 of the company's proposed 240-megawatt Melancthon Grey wind project. This initial phase will be located in Melancthon township, near Shelburne, in Southern Ontario. Financial terms of the contract are confidential.
Phase 1 will consist of 45 wind turbines that will generate an estimated 180,000 megawatt hours per year of green power -- enough to power 25,000 households. The anticipated capital cost of this initial phase is $120-million. Pending regulatory approvals and debt financing, construction is scheduled to start in the spring of 2005, with completion expected by the end of March, 2006. The company does not anticipate the need to issue additional common shares in order to finance the equity portion of this project.
"We are extremely pleased to have been awarded a contract by the Ontario government for the supply of green power from our new wind plant," said John Keating, chief executive officer of Canadian Hydro. "We applaud the Ontario government's commitment to the expansion of the renewable energy industry in Ontario. This contract will result in the development of significant new generating assets for Canadian Hydro. Since 2000, Canadian Hydro has invested over $179-million in the development of seven low-impact renewable energy projects in Alberta and British Columbia. Our wind plant in Melancthon township will increase our market presence in Ontario, and will continue to balance our geographically and technologically diverse portfolio."
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