VANCOUVER, April 29 /CNW/ - Run of River Power Inc. ("ROR" or "the
Company") (TSX-V: ROR) today announced financial and operating results for the
fourth quarter and year ended December 31, 2008. The Management's Discussion
and Analysis, consolidated financial statements and accompanying notes will be
filed to SEDAR and posted on ROR's website www.runofriverpower.com. All
figures reported herein are Canadian dollars unless otherwise stated.
- Submitted response to Request For Proposal for Mamquam Power Project
(35 MW) and Upper Pitt River Power Project (155 MW) into BC Hydro's
2008 Clean Power Call.
- Completed acquisitions of Western Biomass Power Corp. and 80% of
Pacific Northwest Biomass Corp. Projects planned by these two
operations aim to produce in excess of 670,000 MWh of green,
sustainable electricity for approximately 67,000 homes annually.
- Advanced 27 new hydroelectric power projects in central BC, with
combined total output estimated in excess of 1.5 million MWh of green
energy per year, enough power to meet the energy needs of
approximately 150,000 homes annually.
- Operating results at the Brandywine Creek facility reduced due to
planned and unplanned outages and curbed water flows from delayed
snowpack melt and lower annual rainfall. All maintenance has been
completed and the facility has resumed normal operations.
"During 2008 we continued to make excellent progress on our development
projects," said Jako Krushnisky, President and CEO. "With the support of the
First Nations, we submitted two proposals into BC Hydro's Call for Clean
Power. The Upper Pitt River and Mamquam Power Projects, which together
represent nearly 200 MW of capacity, are strongly positioned to deliver
renewable energy to the Lower Mainland, where increasing energy demands are
"We also successfully advanced 27 new hydroelectric projects in the
Highway 20/Tatla Lake region during 2008, increasing our total development
run-of-river and biomass portfolio by 437 MW to almost 750 MW of generating
capacity," added Mr. Krushnisky.
($ in thousands, except
per share amounts) Three Months Ended Year Ended
December 31 December 31
2008 2007 2008 2007
Electricity Sales 431,363 562,849 1,681,459 2,201,295
EBITDA(1) (186,845) (1,154) (814,137) 180,370
Net loss (511,479) (643,071) (2,021,399) (1,369,825)
Basic and diluted loss
per share (0.01) (0.01) (0.03) (0.03)
Cash flow from (used in)
operations (345,601) 67,572 (1,406,225) (53,041)
Total assets 32,421,535 32,151,204 32,421,535 32,151,204
Generation (MWh) 7,459 9,848 29,074 38,514
(1) EBITDA is earnings before interest, taxes, depreciation and
amortization and is not a measure under Canadian Generally Accepted
Accounting Principles ("GAAP") and may not be comparable to similar
measures presented by other companies. Refer to Non-GAAP measures
section of the MD&A for an explanation and reconciliation.
For the year ended December 31, 2008, electricity generated decreased 25%
to 29,074 MWh, resulting in a similar drop in electricity sales to $1.7
million. The resultant negative EBITDA of $0.8 million was $1.0 million lower
than 2007. Net loss increased to $2.0 million from a net loss of $1.4 million
the previous year. Basic and diluted loss per share in 2008 was $0.03,
unchanged from 2007. Cash flow used in operations was $1.4 million, or $1.35
million more than in 2007.
During the fourth quarter of 2008, electricity production was 7,459 MWh,
compared to 9,848 MWh in 2007, accounting for the drop in revenue to $431,363
from $562,849 in the fourth quarter of 2007.
The reduction in generation, revenues, EBITDA and cash flow and the
resultant increase in net loss for the fourth quarter and year was largely
attributable to the Brandywine Creek facility. The operation's performance was
affected by reduced snowpack melt and lower annual rainfall, as well as both
planned and unplanned outages.
- Upper Pitt River Power Project
The Company continued feasibility and permitting work in the Upper Pitt
River. The cluster includes seven low-impact run-of-river hydropower projects
on eight tributaries of the Upper Pitt River, located at the north end of Pitt
Lake, approximately 35 km from Pitt Meadows, BC.
The Upper Pitt River Power Project will have a combined installed plant
capacity of 155 MW and will connect to BC Hydro's grid at the Cheekye
Substation, located just north of Squamish BC. A Feasibility Interconnection
Study Application for connection to the grid was submitted to the British
Columbia Transmission Corporation (BCTC) on October 17, 2008. The proposal
incorporates an alternate transmission route from the original proposed for
- Mamquam Power Project
Feasibility and permitting work also continued at the Company's projects
located in the Mamquam River Watershed. The Mamquam Power Project consists of
three low-impact run-of-river hydropower projects and will have a combined
capacity of 42 MW. The Company has submitted a proposal for two of the three
projects totaling 35 MW into BC Hydro's 2008 Clean Power Call.
The interconnected projects are located in close proximity to one another
in the Mamquam watershed near Squamish, approximately 70 km north of
Vancouver, and will also connect to BC Hydro's grid at the Cheekye Substation.
A Feasibility Interconnection Study Application for connection to the grid was
also submitted on October 17, 2008 to the BCTC.
Bids for both projects were submitted on November 25, 2008 into BC
Hydro's 2008 Call For Clean Power. Energy Purchase Agreements are expected to
be awarded to successful proponents in the second quarter of 2009.
- Other Run-of-River Development Projects
During the quarter, ROR advanced 27 new run-of-river hydroelectric power
projects in central BC. This is the result of the completion of Stages 1 and 2
toward securing Water License and Crown Land rights from the Integrated Land
Management Bureau (Ministry of Agriculture and Lands) and the Water
Stewardship Division (Ministry of the Environment).
Thirteen of the power projects are located in the upper Klinaklini and
Mosely watersheds, south of the Tatla Lake area and approximately 200 km west
of Williams Lake on the Chilcotin Plateau of central BC. The remaining 14
projects stretch from Bella Coola in the west to Williams Lake in the east.
The Bella Coola projects have a design capacity estimated at 224 MW,
while the Klinklini and Mosely projects have a design capacity estimated at
117 MW and 96 MW respectively. The combined total output from these projects
is estimated to exceed 1.5 million MWh of green energy per year, enough power
to meet the energy needs of approximately 150,000 homes.
These project clusters have similar attributes to the Company's other
run-of-river development initiatives and are also located near the Company's
biomass projects, which provides excellent potential for infrastructure
The Company currently has two large-scale biomass power initiatives under
development, totaling 90 MW of base load capacity. When completed, these two
wood waste-to-energy projects will produce in excess of 678,000 MWh of green
sustainable electricity for approximately 70,000 homes annually.
- Tsilhqot'in Power Project
The 60 MW Tsilhqot'in Power Project is a joint venture between the
Company's wholly owned subsidiary, Western Biomass Power Corp. ("Western
Biomass"), and the Tsilhqot'in National Government. The project will utilize
mountain pine beetle damaged timber, which has devastated over eight million
hectares of pine forests in central British Columbia for its fiber supply.
- Suskwa Biomass Power Project
The second project is the 30 MW Suskwa Biomass Power Project, to be
located near New Hazelton in Northwest BC. The Company, via Western Biomass,
completed the acquisition of 80% of Pacific Northwest Biomass Corp. ("PNBC")
during the third quarter of 2008. PNBC holds a 100% interest in the project,
with an option for its partners, the Suskwa Chiefs, to acquire up to 40% of
Western Biomass is preparing to submit later this fall two proposals into
Phase II of BC Hydro's two phased 2008 Bioenergy Call. Energy Purchase
Agreements with successful proponents are expected early in 2010.
The Corporation reports its financial position, results of operations and
cash flows in accordance with Canadian generally accepted accounting
principles ("GAAP") in Canadian dollars.
Statements in this release which describe Run of River Power Inc.'s
intentions, expectations or predictions, or which relate to matters that are
not historical facts are forward-looking statements. These forward-looking
statements involve unknown risks and uncertainties which may cause the actual
results, performances or achievements of Run of River Power Inc. to be
materially different from any future results, performances or achievements
expressed in or implied by such forward-looking statements. Run of River Power
Inc. may update or revise any forward-looking statements, whether as a result
of new information, future events or changing market and business conditions
and will update such forward-looking statements as required pursuant to
applicable securities laws. The TSX Venture Exchange has not reviewed and does
not accept responsibility for the adequacy or accuracy of this press release.
About Run Of River Power Inc.
Run of River Power Inc. (ROR Power) develops renewable, sustainable
energy through its portfolio of run-of-river and biomass projects in BC. The
Corporation operates an Eco Logo(C) certified hydroelectric power generation
station at Brandywine Creek, near Whistler, BC, which generates cash flow
under a long-term 20 year contract with BC Hydro. ROR Power is well positioned
for profitable growth from generating green power and its dominant position in
the sea-to-sky corridor in pursuit of high-quality, power generation
initiatives. Its total development potential in excess of 730 MW is addressing
the increasing demand for clean, sustainable power and energy self
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Jako Krushnisky, President and CEO, Run of
River Power Inc., Tel: (604) 946-9232, firstname.lastname@example.org; Vick Dusik,
Chief Financial Officer, Run of River Power Inc., Tel: (604) 946-9232,