SkyPower Wind Energy Fund LP Files Annual Results and Provides Update on Terrawinds Facility



    TORONTO, April 30 /CNW/ - SkyPower Wind Energy Fund LP (the
"Partnership") announces it has filed with Canadian securities regulators its
annual consolidated financial statements and Management's Discussion and
Analysis ("MD&A") for the three month period and year ended December 31, 2006.
These documents will be available at www.sedar.com and
www.skypowerwindenergyfund.com.

    
    Selected Financial Information and Results of Operations

    -------------------------------------------------------------------------
                     Q1 2006     Q2 2006     Q3 2006     Q4 2006       Total
    -------------------------------------------------------------------------
    Revenues      $  277,738  $  313,494  $  354,367  $  172,255  $1,117,854
    -------------------------------------------------------------------------
    Loss before
     Income
     Taxes        $  (54,663) $ (150,718) $ (177,839) $ (116,241) $ (499,461)
    -------------------------------------------------------------------------
    Future
     Income
     Tax
     Recovery     $        -  $  249,333  $        -  $        -  $  249,333
    -------------------------------------------------------------------------
    Net Income
     (Loss)       $  (54,663) $   98,615  $ (177,839) $ (116,241) $ (250,128)
    -------------------------------------------------------------------------
    Net Income
     (Loss) per
     Unit         $    (0.01) $     0.01  $    (0.02) $    (0.02) $    (0.03)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
                     Q1 2005     Q2 2005     Q3 2005     Q4 2005       Total
    -------------------------------------------------------------------------
    Revenues      $        -  $        -  $        -  $   30,767  $   30,767
    -------------------------------------------------------------------------
    Net Income
     (loss)
     before
     Income
     Taxes        $        -  $        -  $        -  $ (420,912) $ (420,912)
    -------------------------------------------------------------------------
    Future
     Income
     Tax
     Recovery     $        -  $        -  $        -  $        -  $        -
    -------------------------------------------------------------------------
    Net Income
     (Loss)       $        -  $        -  $        -  $ (420,912) $ (420,912)
    -------------------------------------------------------------------------
    Net Income
     (Loss) per
     Unit         $        -  $        -  $        -  $   ($2.21) $   ($2.21)
    -------------------------------------------------------------------------

                       December 31, 2006                   December 31, 2005
    -------------------------------------------------------------------------
    Deferred
     Development Costs    $   85,694,731                      $   32,829,794
    -------------------------------------------------------------------------
    Total Assets          $  103,654,000                      $   72,535,942
    -------------------------------------------------------------------------
    

    For the three month period and year ended December 31, 2006, the
Partnership incurred net losses of $116,241 and $250,128 and earned $172,255
and $1,117,854 in interest income on short-term investments, respectively.
    In the three month period ended December 31, 2006, expenses included
management and directors' fees of $170,121, administrative costs comprised
primarily of professional fees of $114,224 and capital taxes in Terrawinds
Resources Corp. ("Terrawinds") of $4,151.
    In the year ended December 31, 2006, expenses included management and
directors' fees of $667,503, administrative costs comprised primarily of
professional fees which include audit, tax and advisory services and legal
fees of $783,952 and capital taxes of $165,860 and a non-cash future income
tax recovery of $249,333 related to changes in future federal and provincial
income tax rates enacted in the second quarter of 2006.
    In fiscal 2005, the Partnership was only active from the date of its
initial public offering on December 23, 2005 to December 31, 2005. As a
result, the full year of operations of 2006 is not comparable to the shortened
period of 2005. The 2005 year-end results included $30,767 of interest income
on short-term investments, incurred management and directors fees of $37,470,
administrative costs of $112,709 and capital taxes in Terrawinds of $301,500.

    Facility Update

    The Partnership continues to focus on the finalization of the permits,
authorizations, rights-of-way and approvals required to complete the
construction of the CRCE and Infill Phases, finalizing the Balance of Plant
("BOP") construction contract, reviewing all current and proposed contractual
arrangements, assessing revised costs, revenue and overall economics of the
Facility, seeking accommodations, amendments and revisions to arrangements,
financial or otherwise, where appropriate, preparing for the commencement of
construction of the CRCE Phase of the Facility, pursuing certain statutory
amendments and other relief to reduce certain taxes payable by Terrawinds with
Federal and Québec tax authorities and obtaining the additional financing for
the CRCE and Infill Phases.
    Details regarding the status of the various permits, approvals,
authorizations and rights of way, project timing and schedule, project
financing and CRCE tax deductions are set out in the MD&A and in previous
press releases and continuous disclosure documents issued by the Partnership.

    
    Project Financing

    -   In December 2006, Terrawinds amended and renegotiated the $26 million
        Turbine Supply Loan to increase it to a $130 million Turbine Supply
        Loan. The amended loan will fund (a) the balance of the progress
        payments due under the Turbine Supply Agreement for turbines
        delivered in 2006, (b) a portion of the progress payments due for
        turbines to be delivered in 2007, (c) a portion of the initial CRCE
        Phase construction costs, and (d) interest, costs and commitment fees
        associated with the loan. The amended Turbine Supply Loan is
        repayable on the earlier of the closing of a senior secured
        construction and term debt facility or May 31, 2007.
    -   Terrawinds is in the process of negotiating an extension to, and a
        further increase in the amount of, the Turbine Supply Loan to provide
        the necessary credit facilities to construct the CRCE Phase and
        provide for the ongoing progress payments under the Turbine Supply
        Agreement. The extension and increase in the amount is subject to due
        diligence and credit approval by the senior lender, which is in
        process, and final approval by the Board of Directors of Terrawinds
        and the Partnership. Terrawinds and the senior lender anticipate
        completing this financing before May 31, 2007.
    -   In addition, Terrawinds continues to work with the same senior lender
        to underwrite a senior secured construction and term debt facility to
        fund the balance of the construction costs of the Infill Phase and to
        repay the Turbine Supply Loan. The senior construction and term debt
        facility is subject to securing all necessary permits,
        authorizations, approvals and rights-of-way for the CRCE and Infill
        Phases, completion of due diligence, negotiation of definitive
        agreements and credit approval by the senior lender and final
        approval of the Board of Directors of Terrawinds and the Partnership.

    Federal Government Incentive

    -   In late January 2007, the current Federal government announced the
        intention to establish the ecoEnergy Renewable Power Initiative
        ("EERI") to replace the previous Wind Power Production Incentive
        ("WPPI") program which had been established by the prior Federal
        government but had not been extended. The new program proposes to
        provide $0.01 per/kWh for up to 4,000MW for renewable energy projects
        in Canada, including wind projects. Details of the program are
        outlined in the Federal government's discussion paper dated January
        2007 and the program administration details were released in April
        2007. The new program includes a maximum capacity factor to limit the
        amount of EERI applicable for a particular project based on the
        capacity factor. Depending on the final determination of the wind
        energy output from the Facility, the capacity factor cap may apply to
        Terrawinds. Terrawinds is in the process of applying for the EERI.
        Ultimate eligibility for the EERI is based on the timing of when the
        wind turbines eligible for EERI enter into construction. CRCE Phase
        wind turbines are not eligible for EERI which is consistent with the
        prior WPPI program. Currently, it is anticipated that the Terrawinds
        Infill Phase wind turbines will be eligible for EERI based on the
        current construction schedule contemplated by Terrawinds. However,
        the EERI program is based on a "first to construction, first served"
        basis and therefore Terrawinds is not assured that it will be
        eligible for EERI.

    Construction and Project Schedule

    -   As a result of the various changes to the Facility and the new layout
        and rights-of-way, Terrawinds has been working with its construction
        firm and Hatch Acres, in their role as engineering and design,
        construction management and procurement management consultant, to
        revise the engineering and design for the 171MW Facility.
    -   Construction of the substation that will connect the Facility to the
        electrical power grid commenced in November 2006 in order to meet our
        obligations under the Interconnection Agreement with Hydro-Québec
        Trans Energie and to ensure that the substation is available for the
        CRCE Phase when constructed. Completion of the substation and
        interconnection with the power grid is anticipated to be completed in
        the second quarter of 2007. Terrawinds has taken delivery of the
        initial 26 wind turbines under the Turbine Supply Agreement and the
        majority of the other equipment and supplies required to construct
        the CRCE Phase. The wind turbines and supplies are currently being
        stored in Rivière-du-Loup, Québec and are available for the
        commencement of the CRCE Phase construction.
    -   Based on management's current view of the anticipated timing of
        receipt of the balance of the permits, authorizations and approvals
        required for the CRCE Phase and securing the balance of the financing
        required for the CRCE Phase, the Partnership estimates that the
        construction of the CRCE Phase wind turbines and the related
        electrical collection system and interconnection to the power grid
        will be completed prior to December 31, 2007.
    -   Following the completion of the CRCE Phase construction, Terrawinds
        will conduct a 120-day test ("CRCE Test Phase"). If the CRCE Test
        Phase is successful and all necessary approvals, authorizations,
        permits and financing are in place, Terrawinds would commence
        construction of the Infill Phase. Based on management's current view
        of the anticipated timing of the receipt of the balance of the
        permits, authorizations and approvals required for the Infill Phase,
        construction would be completed by December 31, 2008.
    

    With the agreement reached in March 2007 with the local governments on
the number of wind turbines, turbine placement and rights-of-way and the
announcement of a proposed new Federal wind incentive program, the Partnership
is continuing its ongoing analysis of the revised plan for the Facility which
includes completing a revised wind resource report, revising all engineering
and design for the Facility, revising the construction schedule and
construction costs for the Facility, reviewing all current and proposed
contractual arrangements, assessing revised costs, revenue and overall
economics of the Facility, seeking accommodations, amendments and revisions to
agreements and arrangements, financial or otherwise, where appropriate and
possible. The Partnership continues to believe that proceeding to complete the
Facility is the most appropriate way to seek to maximize ultimate unit holder
value.
    Failure to obtain all the necessary rights-of-way, permits and regulatory
approvals, to secure any necessary contractual arrangements or accommodations,
amendments or revisions to arrangements, to secure the additional financing
required to complete the CRCE and Infill Phases of the Facility or failure of
the CRCE Test Phase or other events could result in a halt to construction of
the Facility or could otherwise have a material adverse effect on the
Partnership.
    The Partnership will continue to provide updates to unit holders
regarding the Facility as material information becomes available.

    About SkyPower Wind Energy Fund LP

    The Partnership has invested in the common shares, including flow-through
shares, of Terrawinds Resources Corp., a Canadian corporation that will
construct and operate approximately 114 wind turbines, including up to 22 test
wind turbines (the "CRCE Phase") for purposes of conducting a 120-day test
(the "Test") and, if successful, construct and operate the balance of the 114
wind turbines (the "Infill Phase") to create a 171MW wind energy project near
Rivière-du-Loup, Québec (the "Facility"). The Facility will generate
electricity for sale to Hydro-Québec pursuant to a 21-year power purchase
agreement (the "Power Purchase Agreement").

    Certain statements included in this news release constitute
"Forward-Looking Statements" within the meaning of the Securities Act
(Ontario). Such forward-looking statements involve unknown risks,
uncertainties and other factors including risks of the financial viability of
the Facility, risks in obtaining permits, authorizations, rights-of-way and
approvals required for construction, construction risks, possible failure of
the test phase, risks relating to the Power Purchase Agreement, requirement
for additional financing, failure to obtain statutory or other relief from
certain taxes payable by Terrawinds, availability of government incentive
programs for wind facilities, variable wind resource and associated wind
energy production, turbine design and local climatic conditions, risks
relating to interconnection, reliance on key suppliers, key personnel and one
customer and regulatory risks. These risks and uncertainties as well as
additional information are outlined in the Partnership's 2006 Annual Report
and other continuous disclosure documents available on www.sedar.com. These
risks 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 the SkyPower Wind Energy Fund LP as at April 30, 2007 and,
accordingly, is subject to change after such date. However, SkyPower Wind
Energy 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: David Bacon, Vice President, Finance or Brian
Moncik, Controller of SkyPower I GP Inc., General Partner to the SkyPower Wind
Energy Fund LP at (416) 979-4625 or www.skypowerwindenergyfund.com

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