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Tuesday, June 19, 2012 9:51:34 AM
The Company currently is awaiting an Energy Purchase Agreement ("EPA") for the construction and operation of a $78 million, 24 megawatts per hour bio-mass power plant and a $52 million 138 kilovolt power-line. The EPA has been delayed since September 2011, primarily due to the British Columbia Government's imposed review of BC Hydro's proposed 3 year rate increases.
In February 2012, the BC Utilities Commission authorized a 7.07% interim rate increase to BC Hydro, rather than the BC Government's suggested rate of 3.91%. With the rate review completed, management believes that BC Hydro will be able to move forward and issue the EPA in the near future.
The Company intends to purchase additional land in the McBride area for the power plant with right of ways to be established for the power lines, if and when the EPA has been finalized and given the availability of funds.
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