Primary Energy Recycling Corporation Announces Approval of Harbor Coal Amendment

    OAK BROOK, IL, March 28 /CNW/ - Primary Energy Recycling Corporation
(TSX: PRI.UN) (the "Company") announced today that the amendments to the
Harbor Coal contracts have been approved by the board of the project's site
host. All that remains to have the amendments become fully effective is
document execution by the site host, which is expected shortly. The amendments
eliminate the existing complicated shared savings approach to revenue
determination that has caused unpredictable and volatile results. Effective
retroactive to January 1, 2008, revenue will be determined solely on the basis
of the amount of pulverized coal delivered to the customer's large blast
furnace. There will be no exposure to inventory adjustments for any future or
past periods. Also, the term of the agreements will be extended by twelve
years to 2025. John Prunkl, President of EPCOR USA Ventures LLC, the Manager
of Company said "The amendments are very good news for all investors and unit
holders. They were designed to yield much more stable and predictable results
going forward and with the twelve year extension, this is expected long-term.
We are no longer subject to the commodity pricing for items such as coal,
coke, oxygen and natural gas, nor to inventory adjustments that have all
contributed to the volatile financial performance experienced recently. The
amendments greatly improve the risk profile of this project."
    It is anticipated that the amendments meet the requirements of Second
Amendment and Limited Waiver to Credit Agreement (the "Waiver") that was
entered into with senior lenders on November 30, 2007. Per terms of the
Waiver, the provisions that create exposure to increased interest rate spreads
and cash sweeps are expected to terminate effective with the signing of the
Harbor Coal amendments.
    The Company owns a majority interest in Primary Energy Recycling Holdings
LLC ("Primary Energy"). Primary Energy, headquartered in Oak Brook, Illinois,
indirectly owns and operates four recycled energy projects and a 50% interest
in a pulverized coal facility (collectively, the "Projects"). The Projects
have a combined electrical generating capacity of 283 megawatts and a combined
steam generating capacity of 1.8 MMlbs/hour. Primary Energy creates value for
its customers by capturing and recycling waste energy from industrial and
electric generation processes and converting it into reliable and economical
electricity and thermal energy for its customers' use. For more information,
please visit us at

    Forward-Looking Statements

    When used in this news release, the words "anticipate", "expect",
"project", "believe", "estimate", "forecast" and similar expressions are
intended to identify forward-looking statements. Such statements are subject
to certain risks, uncertainties and assumptions pertaining, but not limited,
to operating performance, regulatory parameters, weather and economic
conditions and the factors discussed in the Company's public filings available
on SEDAR at These forward-looking statements are made as of the
date of this press release and the Company assumes no obligation to update or
revise them to reflect new events or circumstances.

For further information:

For further information: V. Michael Alverson, Chief Financial Officer,
EPCOR USA Ventures LLC, (630) 371-0639,

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