Creststreet Power & Income Fund LP Reports Fourth Quarter and Annual 2006 Financial Results



    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES./

    TORONTO, March 5 /CNW/ - Creststreet Power & Income Fund LP (the
"Partnership") (CRS.UN, CRS.DB, CRS.DB.A) today reported its fourth quarter
and 2006 annual financial results. Revenue for the year ending December 31,
2006 was $15.3 million, an increase from $13.4 million in 2005 as both wind
energy facilities completed a full year of operation versus six and nine
months in 2005 for the Mount Copper and Pubnico Point wind energy projects,
respectively. The wind energy projects delivered an aggregate 238 gigawatt
hours of electricity to Hydro-Québec and Nova Scotia Power in 2006 pursuant to
their long-term power purchase agreements.
    The Partnership generated cash flow from operations of $5.6 million in
2006 compared with $7.2 million in 2005, reflecting accrued interest on the
Partnership's Kettles Hill investment and changes in working capital. The
Partnership paid total cash distributions of $8.1 million in 2006 and
currently is distributing $0.0542 per month, per unit. After setting aside
amounts held for remaining capital expenditures and interest obligations, the
Partnership holds $1.9 million in cash reserves to support and maintain its
distributions throughout the year, sufficient to fund three months of
distributions. Distributions to unitholders in 2006 were 87% tax deferred.
    On a quarterly basis, the Partnership recorded revenue of $3.6 million in
the fourth quarter of 2006 compared with $3.7 million in the third quarter and
$4.9 million in the fourth quarter of 2005. The principal cause of the
reduction in revenue was 9 days of lost production at Mount Copper due to
Hydro-Québec switching the windpower facility to a new 161 kV transmission
line in December 2006.

    Mount Copper
    Mount Copper's 30 interconnected wind turbines were in full operation
with a nameplate capacity of 54 megawatts. During its first full year of
operation, Mount Copper's production was approximately 22% below the
independent engineer's long-term projection for the period. One quarter of the
deviation in energy production was due to lower turbine availability with the
balance from low wind speeds although the curtailment of production from
Hydro-Québec switching the transmission line was a contributor.

    Pubnico Point
    Pubnico Point's 17 interconnected wind turbines were in full operation
with a nameplate capacity of 30.6 megawatts. During the year, Pubnico Point's
production was approximately 6% below the independent engineer's long-term
projection for the period. Half of this deviation in energy production was due
to lower turbine availability and the balance from lower wind speeds.

    2007 Production
    In January and February 2007, production of the Partnership's two
windpower facilities exceeded the engineer's long-term forecast in aggregate
by approximately 2%, with Mount Copper performing at 2% above its forecast and
Pubnico Point performing at 3% above its forecast, respectively. January and
February account for 19% of our annual forecasted output due to seasonally
higher wind speeds.

    Kettles Hill
    Construction of the 63-megawatt ("MW") wind energy project composed of 35
interconnected Vestas V80 1.8 MW turbines at Kettles Hill near Pincher Creek,
Alberta is progressing on schedule. The Partnership expects that the Infill
Phase will be completed in April 2007. The Partnership has invested
$33 million in subordinated notes in Kettles Hill. The table below highlights
the status of all 35 turbines.

    
    Status                                                            Number
    Completed, operating and producing power(1)                            9
    Turbines erected and awaiting commissioning                           10
    Foundations complete and towers and turbines under installation        6
    Foundations complete awaiting installation of towers and turbines      4
    Undergoing or awaiting foundation construction                         6
                                                                      -------
    Total                                                                 35
    (1) Includes five turbines completed in first quarter, 2006.
    

    On March 5, 2007, Creststreet Kettles Hill Windpower LP announced it had
retained a financial advisor to assist the Independent Committee of its Board
of Directors on its mandate to provide liquidity to its unitholders after
completion of the wind energy project. The Manager expects completion of that
process before the end of 2007.

    Distribution declaration
    The Board of Directors of the Partnership has declared monthly cash
distributions of $0.542 per unit to be paid according to the following
schedule:

    
    -------------------------------------------------------------------------
    Distribution      Distribution
    Period            Amount          Record Date        Payment Date
    -------------------------------------------------------------------------
    March             $ 0.0542        March 30, 2007     April 16, 2007
    -------------------------------------------------------------------------
    April             $ 0.0542        April 30, 2007     May 15, 2007
    -------------------------------------------------------------------------
    May               $ 0.0542        May 31, 2007       June 15, 2007
    -------------------------------------------------------------------------
    

    At December 31, 2006, the Partnership had 11.5 million units issued and
    outstanding.

    Conference call
    The General Partner of Creststreet Power & Income Fund LP will hold a
conference call to discuss its results today at 11 a.m. eastern time. To join
the call, please dial 416 644-3416 in Toronto, or toll-free 1 800 732-9303
outside of the greater Toronto area. The call will also be webcast live at
www.creststreet.com and at http://www.newswire.ca.

    About Creststreet Power & Income Fund LP
    Creststreet Power & Income Fund LP (the "Partnership") owns and operates
two wind energy projects in Quebec and Nova Scotia with a total of 47 wind
turbines and power generating capacity of 84.6 megawatts. All electricity
generated by these wind energy projects is being sold pursuant to long-term
power purchase agreements with provincial electricity utilities.

    CERTAIN STATEMENTS INCLUDED IN THIS NEWS RELEASE CONSTITUTE
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE SECURITIES ACT
(ONTARIO). SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS,
PERFORMANCE OR ACHIEVEMENTS OF THE PARTNERSHIP TO BE MATERIALLY DIFFERENT FROM
ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH
FORWARD-LOOKING STATEMENTS.

    THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS
THE EXPECTATIONS OF CRESTSTREET POWER & INCOME FUND LP AS AT MARCH 5, 2007
AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, CRESTSTREET
POWER & INCOME FUND LP EXPRESSLY DISCLAIMS ANY INTENTION OR OBLIGATION TO
UPDATE OR REVISE ANY FORWARD-LOOKING INFORMATION, WHETHER AS A RESULT OF NEW
INFORMATION, FUTURE EVENTS OR OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE LAW.




For further information:

For further information: Derren Newell VP, Finance and CFO, Creststreet
Power & Income General Partner Limited, Tel: (403) 215-2267, E-mail:
dnewell@creststreet.com

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CRESTSTREET POWER & INCOME FUND LP

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