On November 1, 2010, Peter Kiewit Sons Co, the contractor for Toba Montrose General Partnership ("TMGP"), achieved substantial completion and TMGP assumed full operational control of the East Toba and Montrose hydroelectric generation and transmission facilities ("Toba Montrose"). The Toba Montrose project will generate average net annual energy or 710,000 to 730,000 megawatt-hours ("MWh"). TMGP’s operations team is fully trained and will be resident on site on a 24/7 basis to ensure safe, reliable and efficient operations.
On May 27, 2010, TMGP commenced selling electricity to BC Hydro and Power Authority ("BC Hydro") under a 35 year Electricity Purchase Agreement ("EPA") from electricity generated by Toba Montrose and on August 5, 2010, TMGP became eligible to receive ecoEnergy funding of $10 per MWh of electricity generated by Toba Montrose and sold to BC Hydro for 10 years.
During the second and third quarter of 2010, TMGP sold $33.4 million of electricity generated by Toba Montrose and was eligible to receive $1.8 million in ecoEnergy grants. Prior to the Toba Montrose substantial completion date of November 1, 2010, TMGP recorded revenue from electricity sales and eligible ecoEnergy grants as an adjustment to the capital cost of Toba Montrose. Beginning on November 1, 2010, TMGP commenced to recognize electricity sales and eligible ecoEnergy grants as revenue in its Statement of Operations.
TMGP is a 60/40 partnership between GE Energy Financial Services (a unit of GE) and Plutonic Power Corporation.
DOKIE WIND PROJECT UPDATE
The Dokie Wind Energy Project, located 1,100 kilometres northeast of Vancouver, near Chetwynd, BC, will use 48 Vestas V90 wind turbines and will generate average net annual energy of 320,000 – 340,000 MWh. Completion of construction and commencement of electricity sales to BC Hydro under a 25 year EPA are scheduled for early 2011.
Wind turbine erection is scheduled to be completed in November, 2010. Mechanical completion of the erected wind turbines commenced during the third quarter 2010, and pre-commissioning of mechanically complete wind turbines is underway. The substation construction is complete, and has entered the pre-commissioning stage.
The 230 kV transmission line is now energized, and two out of six 35 kV collector lines are providing backfeed power to wind turbines for commissioning. Support from the community has been very positive and Dokie General Partnership ("DGP") continues to work with its First Nations partners, the Halfway River, West Moberly and Saulteau First Nations and the McLeod Lake Indian Band.
DGP is a 49/51 partnership between GE Energy Financial Services (a unit of GE) and Plutonic Power Corporation.
FINANCIAL RESULTS
For the third quarter ended September 30, 2010, the Company incurred a net loss of $1.6 million ($0.03 net loss per common share) compared with a net loss of $2.7 million ($0.06 net loss per common share) in the same period in 2009. The Company’s net loss for the quarter ended September 30, 2010 is comprised of $1.9 million (September 30, 2009 – $2.3 million) in net cash operating expenditures, and $0.2 million in net non-cash operating gains (September 30, 2009 – $0.4 million net non-cash operating losses), including share based compensation, loss on disposal of investments, and an unrealized gain on the fair value adjustment of interest rate swaps.
As at September 30, 2010, the Company had $10.7 million in consolidated cash, $25.4 million in consolidated cash restricted to construction and consolidated working capital of $24.4 million. Excluding its respective proportionate 40% share of TMGP cash and working capital and 51% share of DGP cash and working capital as at September 30, 2010, the Company had $6.9 million in cash and $6.8 million in working capital.
As at September 30, 2010, the Company had recorded $272.7 million in long term debt, $327.0 million in property plant and equipment and $5.9 million in intangible assets, based on its 40% share in TMGP and 51% share in DGP. The long term debt of TMGP and DGP are secured by the assets of TMGP and DGP respectively and are non-recourse to the other assets of the Company.
Plutonic Power identifies, develops and operates wind power projects in a safe reliable and efficient manner. Plutonic Power strives to be a Canadian-based leader in clean power.
