TSX Venture Exchange
TORONTO, Aug. 31 /CNW/ - Tonbridge Power Inc. (TSXV-TBZ) ("Tonbridge Power" or the "Company") is pleased to announce that it has executed two Memoranda of Understanding, ("MOUs"), with the Western Area Power Administration ("Western") an agency of the U.S. Department of Energy (DoE), to further review and evaluate its proposed Green Line and MATL Upgrade projects. The MOUs outline a framework for cooperation between Tonbridge and Western for funding of investment in, and development of both projects.
The MOUs contemplate that Western and Tonbridge will pursue an aggressive schedule to complete the evaluative work required and to proceed to definitive project financing agreements, subject to usual final approvals. Such definitive agreements would outline the project scope, governance, ownership participation, the rights and obligations of each party, interest rates and repayment structure as well as provide for funding construction.
The MOUs were executed in accordance with the requirements in section 402 of the Recovery Act and respect the evaluation criteria set out in Western's Transmission Infrastructure Program (TIP). The Green Line and the MATL upgrade projects were chosen by Western from numerous applications proposing several dozen projects seeking Western's support and participation. The Green Line Project is a 230-500-kV transmission line under development that would connect the southern end of the MATL line near Great Falls, Mont., to the Colstrip line at either Townsend or Garrison, providing service to the Bonneville Power Administration (BPA) system. Initial development commenced in November 2009 after Tonbridge concluded Agreements with Gaelectric North America Inc. and later with Invenergy Wind Development LLC as the project's two Anchor Shippers.
The MATL project is designed to increase the current MATL path rating from 300 MW to as much as 600 MW, but only as system stability and flow conditions permit. Currently the MATL line is under construction and, when completed, has the physical capacity to transmit more than its present 300-MW path rating would permit. This upgrade project's scope and schedule will coincide with the development of the Green Line and will include flow, congestion and design studies, path rating and permit applications as well as possible substation investments. The MATL Upgrade would provide access to new wind generation assets in the region and would enable Western to obtain 50 MW of northbound capacity on the MATL line as agreed in the 2009 Construction Financing Agreement executed on October 27, 2009, between Tonbridge and Western.
Chief Executive Officer, Johan van't Hof remarked, "These MOU's are an important step in developing the Green Line and the MATL upgrade. We are proud of the relationship we enjoy with Western and more than appreciative of their technical and operating assistance to date in MATL, and look forward to continuing to work with their people and their Transmission Infrastructure Program in bringing these two projects to fruition."
Western is a power marketing agency of the U.S. Department of Energy. For more information, please go to www.wapa.gov.
Tonbridge Power Inc. is a Toronto-based developer of electrical transmission assets, whose principal asset is a 100% interest in MATL.
This news release contains "forward-looking information", within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking information includes, but is not limited to, statements with respect to financing arrangements and related matters. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "proposed", "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "should", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include, but are not limited to: risks related to the financing or construction of the transmission line and the substation; risks related to the performance of parties contracting for transmission capacity; delays in obtaining governmental approvals, permits or project financing or in the completion of development or construction activities, requirements for additional capital, government regulation, environmental risks as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2009 available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information that is included herein, except in accordance with applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE TONBRIDGE POWER INC.
For further information: For further information: Tonbridge Power Inc., www.tonbridgepower.com, Johan van't Hof, Chief Executive Officer, Tel: (416) 850-2150, Email: firstname.lastname@example.org; Robert van Beers, Chief Operating Officer, Tel: (416) 850-2150, Email: email@example.com; Robert McFarlane, Chief Business Officer, Tel: (416) 850-2150, Email: firstname.lastname@example.org; Brisco Capital Partners Corp., Graeme A. Dick, Tel: (403) 561-8989, Email: email@example.com