Great Lakes Hydro Income Fund Reports Third Quarter Results



    STOCK SYMBOL: GLH.UN/TSX

    GATINEAU, QC, Nov. 7 /CNW Telbec/ - Great Lakes Hydro Income Fund today
reported its financial and operating results for the third quarter ended
September 30, 2007. The Fund provides additional information on its results
and strategy in its Letter to Unitholders and Supplemental Information
available at www.greatlakeshydro.com under Investor Relations/Financial
Highlights.
    Power generation in the third quarter of 2007 totaled 749 gigawatthours
(GWh) or 81% of long-term average (LTA), reflecting below-average inflows for
the period in Québec and Ontario. Generation levels in British Columbia and
New England were in line with LTA. For the nine-month period, generation was
92% of LTA.
    Third-quarter revenues totalled $32.9 million and income before non-cash
items amounted to $11.2 million compared with $37.7 million and $14.1 million,
respectively, in 2006. For the nine-month period, revenues were lower by 9%
and income before non-cash items by 17%. The 2007 operating results are
primarily attributable to the below-LTA generation levels.
    The year-over-year increase in distributions to unitholders reflects the
additional contribution from the Carmichael facility acquired in July 2006.

    
    FINANCIAL AND OPERATING HIGHLIGHTS
    -------------------------------------------------------------------------
    Unaudited                      Three months ended     Nine months ended
     C$ millions,                        September 30          September 30
     except otherwise noted           2007       2006       2007       2006
    -------------------------------------------------------------------------
    Revenues                        $ 32.9     $ 37.7    $ 122.5    $ 135.1
    Income before non-cash items      11.2       14.1       54.0       65.3
    Distribution                      15.1       15.0       45.3       45.0
    Per unit
      Income before non-cash items    0.23       0.29       1.12       1.35
      Distribution                    0.31       0.31       0.94       0.93
    Power generated (GWh)              749        923      2,745      3,183
    Average price (cents/KWh)          4.4        4.1        4.5        4.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    "We are disappointed with the lower than average water inflows in this
quarter and the year to date, especially after the excellent year we had in
2006," said Richard Legault, President and Chief Executive Officer. "As
managers of the Fund, one of our top priorities has been to ensure stable cash
distributions for our unitholders and to maintain a strong track record in
mitigating the impact of ups and downs in hydrological conditions. Our
business is cyclical but it is also robust, which allows us the flexibility to
manage our maintenance and capital expenditures when necessary without
compromising the health and safety of our employees, the environment and the
reliability of our power systems."
    The Fund has spent $23.4 million in its capital program to date in 2007
and expects to invest a total of $38.4 million for the full year. At quarter
end, the Fund had a current cash balance of $16.2 million and a total of
$46 million available on its credit and low-hydrology facilities.

    CONFERENCE CALL

    A conference call for investors and media to review the third quarter
results for 2007 will be held on Thursday, November 8, 2007 at 10:00 a.m.
(EST). To participate in the conference call, please dial 416-644-3420 or
1-866-249-2165 toll-free in North America, at 9:50 a.m. (EST). For those
unable to participate in the conference call, a taped rebroadcast will also be
available until midnight on November 10, 2007. To access this rebroadcast,
please call 1-877-289-8525 toll-free in North America, and enter the passcode
21249647#. The conference call will also be webcast live on the Fund's website
at www.greatlakeshydro.com, where it will be archived for three months.

    DISTRIBUTIONS

    The schedule below sets out the cash distribution history for the last
twelve months:

    RECORD DATE             PAYMENT DATE              DISTRIBUTION PER UNIT
    -------------------------------------------------------------------------
    August 31, 2007         September 28, 2007        10.417 cents
    July 31, 2007           August 31, 2007           10.417 cents
    June 30, 2007           July 31, 2007             10.417 cents
    May 31, 2007            June 29, 2007             10.417 cents
    April 30, 2007          May 31, 2007              10.417 cents
    March 31, 2007          April 30, 2007            10.417 cents
    February 28, 2007       March 30, 2007            10.417 cents
    January 31, 2007        February 28, 2007         10.417 cents
    December 29, 2006       January 31, 2007          10.417 cents
    November 30, 2006       December 29, 2006         10.417 cents
    October 31, 2006        November 30, 2006         10.417 cents
    September 30, 2006      October 31, 2006          10.417 cents
    

    FORWARD-LOOKING STATEMENTS

    This news release may contain forward-looking statements concerning the
Great Lakes Hydro Income Fund ("Fund") business and operations. Forward
looking statements can be identified by the use of words, such as "believe",
"well positioned", "long-term", "grow", "expand", "enhance" or variations of
such words and phrases or state that certain actions, events or results "will"
be taken, occur or be achieved. Forward looking statements involve
assumptions, known and unknown risks, uncertainties and other factors which
may cause the actual results or performance to be materially different from
any future results or performance expressed or implied by the forward
statements. More details relating to risk factors can be found in the Fund's
annual information form in the section entitled Risk Factors.
    Examples of such statements include, but are not limited to factors
relating to production and the business, financial position, operations and
prospects for the Fund. They include (1) the Fund's level of generation;
(2) the Fund's cost of production; (3) interest rates as they bear on the
Fund's indebtedness; (4) planned capital expenditures; (5) the impact of
changes in the Canadian dollar - U.S. dollar on the Fund's costs and results
of operations; (6) the negotiation of collective agreements with its unionized
employees; (7) business and economic conditions; (8) the legislation governing
air emissions, discharges into water, waste, hazardous materials and workers'
health and safety as well as the impact of future legislation and regulations
on expenses, capital expenditures and restrictions on operations;
(9) regulatory investigations, claims, lawsuits and other proceedings; and
(10) reliance on the guaranteed price for electricity by Brookfield Power Inc.
Actual results and developments are likely to differ, and may differ
materially, from those expressed or implied in the forward-looking statements
contained herein, and as a such, you are cautioned not to place undue reliance
on these forward-looking statements.
    These forward-looking statements represent our views as of the date of
this news release. While the Fund anticipates that subsequent events and
developments may cause the Fund's views to change, the Fund disclaims any
obligation to update these forward-looking statements. These forward-looking
statements should not be relied upon as representing the Fund's views as of
any date subsequent to the date of this news release.

    ABOUT GREAT LAKES HYDRO INCOME FUND

    Great Lakes Hydro (www.greatlakeshydro.com) is a premier Canadian income
fund. We are the largest power income fund in North America with
1,015 megawatts of power generating capacity and an average annual production
of 3,875 gigawatt hours.
    Great Lakes Hydro Income Fund produces electricity exclusively from
environmentally friendly hydroelectric resources. The Fund owns, operates and
manages 26 high quality hydroelectric generating stations located on eight
river systems in four distinct geographic regions across North America:
Quebec, Ontario, British Columbia and New England.
    Brookfield Power, which comprises all the power operations of Brookfield
Asset Management, owns 50.1% of the Fund's outstanding units.
    Great Lakes Hydro Income Fund units are listed for trading on the Toronto
Stock Exchange under the symbol GLH.UN.
    %SEDAR: 00013106EF




For further information:

For further information: Grace Pollock, Director, Investor Relations,
(819) 561-8072, grace.pollock@brookfieldpower.com

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