Innergex announces the start of operation of the 49.9 MW Kwoiek Creek hydro
-- Contribution to the Corporation's annual revenues of
approximately $18.0 million
-- Partnership with the Kanaka Bar Indian Band
-- Electricity to power more than 20,000 British Columbia
households each year
LONGUEUIL, QC, Feb. 18, 2014 /CNW Telbec/ - Innergex Renewable Energy Inc.
(TSX: INE) ("Innergex" or the "Corporation") announces that the Kwoiek Creek
Resources Limited Partnership has begun operation of the Kwoiek Creek
run-of-river hydroelectric facility located in British Columbia, Canada.
Innergex holds 50% of Kwoiek Creek Resources Limited Partnership, and is
responsible for the management of the construction and the operation of the
facility. The Kanaka Bar Indian Band holds the remaining 50% interest.
"We are very pleased to have realized this project in partnership with the
Kanaka Bar Indian Band. Kwoiek Creek represents yet another project developed
in the best interests of the host community, our partners and our investors",
declares Mr. Michel Letellier, President and Chief Executive Officer of the
Corporation. "We look forward to building more projects in partnership with
First Nations and local municipalities in the future", adds Mr. Letellier.
"The production of electricity at the Kwoiek Creek facility marks the
culmination of many years of hard work and dedication by our communities and
our partner Innergex. We are very proud of this accomplishment, which provides
our local residents and all of British Columbia with clean energy and
long-term benefits", states Chief James Frank of the Kanaka Bar Indian Band.
The 49.9 MW Kwoiek Creek hydroelectric facility is located partly on Crown
lands and partly on reserve lands, approximately 14 km south of Lytton,
British Columbia. Construction began in 2011 and was completed in early
December 2013, on time and on budget. While commissioning of the facility
began at that time, the Corporation and BC Hydro have amended their agreement
to clarify stipulated production levels, subject to approval by the British
Columbia Utilities Commission. Once the approval is received, BC Hydro will
accept the COD Certificate with an effective commissioning date of January 1,
2014 for the Kwoiek Creek facility.
Kwoiek Creek's average annual production is estimated to reach 223,400 MWh,
enough to power more than 20,000 BC households. In its first full year of
operation, it is expected to generate revenues and Adjusted EBITDA of
approximately $18.0 million and $15.0 million respectively. All of the
electricity it produces is covered by a 40-year fixed-price power purchase
agreement with BC Hydro, which was obtained under the 2006 Call for Tenders
for clean energy and which provides for an annual adjustment to the selling
price based on a portion of the Consumer Price Index.
About Innergex Renewable Energy Inc.
Innergex Renewable Energy Inc. (TSX: INE) is a leading Canadian independent
renewable power producer. Active since 1990, the Company develops, owns, and
operates run-of-river hydroelectric facilities, wind farms, and solar
photovoltaic farms and carries out its operations in Quebec, Ontario, British
Columbia, and Idaho, USA. Its portfolio of assets currently consists of: (i)
interests in 31 operating facilities with an aggregate net installed capacity
of 654 MW (gross 1,146 MW), including 24 hydroelectric operating facilities,
six wind farms, and one solar photovoltaic farm; (ii) interests in six
projects under development or under construction with an aggregate net
installed capacity of 227 MW (gross 338 MW), for which power purchase
agreements have been secured; and (iii) prospective projects with an aggregate
net capacity totaling 2,900 MW (gross 3,125 MW). Innergex Renewable Energy
Inc. is rated BBB- by S&P and BB (high) by DBRS (unsolicited rating).
The Corporation's strategy for building shareholder value is to develop or
acquire high-quality facilities that generate sustainable cash flows and
provide a high return on invested capital, and to distribute a stable dividend.
Non-IFRS Measures Disclaimer
Investors are cautioned that Adjusted EBITDA is not a measure recognized by
IFRS and has no meaning prescribed by it, and therefore may not be comparable
to those presented by other issuers. Innergex believes that this indicator is
important, as it provides management and the reader with additional
information about its cash generation capabilities and facilitates the
comparison of results over different periods. References to "Adjusted EBITDA"
are to revenues less operating expenses, general and administrative expenses
and prospective project expenses. Investors are cautioned that this non-IFRS
measure should not be construed as an alternative to net earnings as
determined in accordance with IFRS.
Forward-Looking Information Disclaimer
This press release contains forward-looking information within the meaning of
securities legislation. All information and statements other than statements
of historical facts contained in this press release are forward-looking
information. Such statements and information may be identified by looking for
words such as "about", "approximately", "may", "believes", "expects", "will",
"intend", "should", "plan", "predict", "potential", "project", "anticipate",
"estimate", "continue" or similar words or the negative thereof or other
The forward-looking information includes forward-looking financial information
or financial outlook, within the meaning of securities laws, such as the
estimated electricity production, revenues and Adjusted EBITDA to inform
investors of the potential financial impact of the Kwoiek Creek hydroelectric
facility on the Corporation's results. Such information may not be appropriate
for other purposes.
The forward-looking information is based on certain key expectations and
assumptions made by Innergex as of the date of this press release, including
expectations and assumptions concerning performance of facility, as well as
estimates, forecasts and opinions of the Corporation. Although Innergex
believes that the expectations and assumptions on which such forward-looking
information is based are reasonable, undue reliance should not be placed on
the forward-looking information since no assurance can be given that they will
prove to be correct. Actual results could differ materially from those
currently anticipated due to a number of factors and risks. These include, but
are not limited to, changes in hydrology, variability of project performance
and related penalties, equipment failure, and other risks generally
attributable to the business of Innergex. For additional information with
respect to risks and uncertainties, refer to the Annual Information Form of
Innergex filed on SEDAR's website at www.sedar.com. The forward-looking
information contained herein is made as of the date of this press release and
the Corporation does not undertake any obligation to update or revise any
forward-looking information, whether as a result of events or circumstances
occurring after the date hereof, unless required by legislation.
SOURCE Innergex Renewable Energy Inc.
Marie-Josée Privyk, CFA, SIPC Director - Investor Relations 450928-2550,
ext. 222 email@example.com www.innergex.com
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CO: Innergex Renewable Energy Inc.
ST: British Columbia
-0- Feb/18/2014 23:02 GMT
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