Brookfield Renewable Reports Strong First Quarter Results

Brookfield Renewable Reports Strong First Quarter Results 
HAMILTON, BERMUDA -- (Marketwired) -- 05/02/14 --  Investors,
analysts and other interested parties can access Brookfield
Renewable's 2014 first quarter results as well as the Letter to
Shareholders and Supplemental Results on the web site under the
Investor Relations section at 
The 2014 first quarter results conference call can be accessed via
webcast on May 2, 2014 at 9:00 a.m. ET at
or via teleconference at 1-800-319-4610 toll free in North America.
For overseas calls please dial 1-604-638-5340, at approximately 8:50
a.m. ET. The teleconference taped rebroadcast can be accessed at
1-800-319-6413 (password: 1557#) until June 2, 2014. 
All amounts in U.S. dollars unless stated otherwise 
Brookfield Renewable Energy Partners L.P. (TSX: BEP.UN)(NYSE: BEP)
("Brookfield Renewable") today announced strong results for the three
months ended March 31, 2014. 
"Our first quarter results reflect the strong performance from our
portfolio and provide an early indication of the strategic impact of
positioning the business for improving market fundamentals and
expanding into new markets," said Richard Legault, President and CEO.
"We expect these initiatives to grow and diversify our revenue
streams and to support the long-term growth of cash flows and
distributions on a per-unit basis." 
Financial Results 

                                                          Three months ended
US$ millions (except per unit or otherwise noted)                   March 31
                                                              2014      2013
Generation (GWh)                                                            
- Total                                                      5,711     5,535
- Brookfield Renewable's share                               4,756     4,634
Revenues                                                 $     480 $     437
Adjusted EBITDA(1)                                       $     360 $     319
Funds from operations (FFO)(1)                           $     185 $     162
FFO per unit(1)(2)                                       $    0.70 $    0.61
(1)  Non-IFRS measure. Refer to "Cautionary Statement Regarding Use of Non- 
     IFRS Measures".                                                        
(2)  For the three months ended March 31, 2014 weighted average LP units,   
     Redeemable/Exchangeable units and General partnership units totaled    
     265.3 million (2013: 265.2 million).                                   

Review of Operations 
For the first quarter, adjusted EBITDA achieved a quarterly record of
$360 million, an increase of 13% compared to $319 million in Q1 2013.
Funds from operations (FFO) increased 14% to $185 million or $0.70
per unit as compared with $162 million or $0.61 per unit in the prior
year. Results benefited from higher electricity prices in the
northeastern United States and Brazil, which added $35 million to FFO
in the quarter.  
Total generation for the three months ended March 31, 2014 was 5,711
GWh, an increase of 176 GWh from the same period in the prior year.  
The hydroelectric portfolio generated 5,001 GWh, in-line with the
long-term average (LTA) of 4,916 GWh and an increase of 222 GWh as
compared to the first quarter of 2013. Generation from existing
hydroelectric assets was 4,711 GWh compared to 4,779 GWh for the
prior year. Portfolios acquired in Maine during the quarter and the
first quarter of 2013 contributed another 231 GWh of generation, and
a facility commissioned in Brazil in the first quarter of 2013
contributed an additional 59 GWh. 
The wind portfolio generated 610 GWh as compared to LTA of 635 GWh,
and an increase of 71 GWh compared to the first quarter of 2013.
Generation increased over the prior year due to improved wind
conditions and an incremental 27 GWh from a full quarter's
contribution from facilities acquired in California in the first
quarter of 2013. 
The tables below summarize generation by segment and region: 

                                 Generation (GWh)(1)   Variance of Results  
For the three months ended      Actual  Actual     LTA   Actual  Actual vs. 
 March 31                         2014    2013    2014  vs. LTA  Prior Year 
Hydroelectric generation                                                    
  United States                  2,591   2,561   2,794     (203)         30 
  Canada                         1,311   1,282   1,193      118          29 
  Brazil (2)                     1,099     936     929      170         163 
                                 5,001   4,779   4,916       85         222 
Wind Energy                                                                 
  United States                    273     216     311      (38)         57 
  Canada                           337     323     324       13          14 
                                   610     539     635      (25)         71 
Other                              100     217     219     (119)       (117)
Total generation (3)             5,711   5,535   5,770      (59)        176 
(1)  For assets acquired or reaching commercial operation during the year,  
     this figure is calculated from the acquisition or commercial operation 
(2)  In Brazil, assured generation levels are used as a proxy for LTA.      
(3)  Includes our share of generation in respect of those equity-accounted  
     investments which we do not manage.                                    

Recent Highlights 

--  Brookfield Renewable and its institutional partners completed the
    acquisition of a 33% economic and 50% voting interest in the 417 MW Safe
    Harbor hydroelectric generating station on the Susquehanna River in
    Pennsylvania. The facility generates an average of 1,100 GWh annually,
    possesses storage capabilities supporting daily peaking and is one of
    the largest conventional hydroelectric facilities in the PJM market. 
--  Brookfield Renewable and its institutional partners agreed to acquire
    the wind portfolio of Bord Gais Energy for a total enterprise value of
    up to approximately EUR700 million ($960 million), subject to customary
    closing adjustments. The portfolio comprises 321 MW of operating wind
    capacity with an additional 125 MW currently in construction and an
    approximate 300 MW development pipeline. The transaction represents
    Brookfield's first renewable energy investment outside the Americas and
    provides a strong foundation to build a scalable renewable energy
    business in Europe. 
--  The 45 MW Kokish River hydroelectric facility in British Columbia
    entered commercial operation in April 2014. The project was developed by
    Brookfield Renewable and its partners, the 'Namgis First Nation. 
--  Brookfield Renewable and its institutional partners completed the
    acquisition of the 70 MW Black Bear hydroelectric portfolio in Maine. 
--  Liquidity at quarter-end was approximately $1.2 billion, providing the
    financial resources and flexibility to fund ongoing growth initiatives. 
--  On March 21, 2014, Brookfield Renewable was included in the S&P/TSX
    Composite Index, the benchmark index for the Canadian equity markets.  
--  The previously announced distribution increase of 7% to $1.55 on an
    annualized basis took effect with the March 31, 2014 payment. 

Distribution Increase and Declaration  
The Board of Directors has declared a quarterly distribution in the
amount of $0.3875 per limited partnership unit, payable on June 30,
2014 to unitholders of record as at the close of business on May 30,
2014. This distribution is consistent with Brookfield Renewable's
policy of targeting a long-term, sustainable distribution in the
range of 60-70% of FFO and which increases on average by 3% to 5%
The regular quarterly dividends on the Brookfield Renewable Power
Preferred Equity Inc. preferred shares have also been declared. 
Distribution Currency Option  
The quarterly distributions payable on limited partnership units of
Brookfield Renewable Energy Partners are declared in U.S. dollars.
Registered and beneficial shareholders who are resident in Canada or
the United States may opt to receive their distributions in either
U.S. dollars or the Canadian dollar equivalent. Unless they request
the Canadian dollar equivalent, shareholders will continue to receive
distributions in U.S. dollars (which may be converted for them by the
broker or other intermediary, as may currently be the case). The
Canadian dollar equivalent of the quarterly distribution will be
based on the Bank of Canada noon exchange rate on the record date or,
if the record date falls on a weekend or holiday, on the Bank of
Canada noon exchange rate of the preceding business day.  
Registered shareholders wishing to receive the Canadian dollar
distribution equivalent should contact Brookfield Renewable's
transfer agent, Computershare Trust Company of Canada, in writing at
100 University Avenue, 8th Floor, Toronto, Ontario M5J 2Y1 or by
phone at 1-800-564-6253. Beneficial unitholders (i.e., those holding
their units in street name with their brokerage) should contact the
broker with whom their units are held. 
Distribution Reinvestment Plan 
Brookfield Renewable maintains a Distribution Reinvestment Plan
("DRIP") which allows holders of its limited partnership units who
are resident in Canada to acquire additional units by reinvesting all
or a portion of their cash distributions without paying commissions.
Information on the DRIP, including details on how to enroll, is
available on Brookfield Renewable's website at  
Additional information on Brookfield Renewable's distributions and
preferred share dividends can be found on its website at under Investor Relations.  
Additional Information 
The Letter to Shareholders and the Supplemental Results for the
period ended March 31, 2014 contain further information on Brookfield
Renewable's strategy, operations and financial results. Shareholders
are encouraged to read these documents, which are available at 
Brookfield Renewable Energy Partners (TSX: BEP.UN)(NYSE: BEP)
operates one of the largest publicly-traded, pure-play renewable
power platforms globally. Its portfolio is primarily hydroelectric
and totals over 6,000 megawatts of installed capacity. Diversified
across 71 river systems and 12 power markets in the United States,
Canada and Brazil, the portfolio's output is sold predominantly under
long-term contracts and generates enough electricity from renewable
resources to power more than three million homes on average each
year. With a portfolio of high-quality assets and strong growth
prospects, the business is positioned to generate stable, long-term
cash flows supporting regular and growing cash distributions to
shareholders. For more information, please visit 
This news release contains forward-looking statements and
information, within the meaning of Canadian securities laws and
"forward-looking statements" within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, Section 21E of the U.S.
Securities Exchange Act of 1934, as amended, "safe harbor" of the
United States Private Securities Litigation Reform Act of 1995 and in
any applicable Canadian securities regulations, concerning the
business and operations of Brookfield Renewable. Forward-looking
statements may include estimates, plans, expectations, opinions,
forecasts, projections, guidance or other statements that are not
statements of fact. Forward-looking statements in this news release
include statements regarding the quality of Brookfield Renewable's
assets and the resiliency of the cash flow they will generate,
Brookfield Renewable's anticipated financial performance, future
commissioning of assets, contracted portfolio, technology
diversification, acquisition opportunities, expected completion of
acquisitions, future energy prices and demand for electricity,
economic recovery, achieving long-term average generation, project
development and capital expenditure costs, diversification of
shareholder base, energy policies, economic growth, growth potential
of renewable asset class, the future growth prospects and
distribution profile of Brookfield Renewable and Brookfield
Renewable's access to capital. Forward-looking statements can be
identified by the use of words such as "plans", "expects",
"scheduled", "estimates", "intends", "anticipates", "believes",
"potentially", "tends", "continue", "attempts", "likely",
"primarily", "approximately", "endeavours", "pursues", "strives",
"seeks", or variations of such words and phrases, or statements that
certain actions, events or results "may", "could", "would", "might"
or "will" be taken, occur or be achieved. Although we believe that
our anticipated future results, performance or achievements expressed
or implied by the forward-looking statements and information in this
news release are based upon reasonable assumptions and expectations,
we cannot assure you that such expectations will prove to have been
correct. You should not place undue reliance on forward-looking
statements and information as such statements and information involve
known and unknown risks, uncertainties and other factors which may
cause our actual results, performance or achievements to differ
materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking statements
and information. 
Factors that could cause actual results to differ materially from
those contemplated or implied by forward-looking statements include,
but are not limited to: our limited operating history; the risk that
we may be deemed an "investment company" under the Investment Company
Act; the fact that we are not subject to the same disclosure
requirements as a U.S. domestic issuer; the risk that the
effectiveness of our internal controls over financial reporting could
have a material effect on our business; changes to hydrology at our
hydroelectric stations or in wind conditions at our wind energy
facilities; the risk that counterparties to our contracts do not
fulfill their obligations, and as our contracts expire, we may not be
able to replace them with agreements on similar terms; increases in
water rental costs (or similar fees) or changes to the regulation of
water supply; volatility in supply and demand in the energy market;
our operations are highly regulated and exposed to increased
regulation which could result in additional costs; the risk that our
concessions and licenses will not be renewed; increases in the cost
of operating our plants; our failure to comply with conditions in, or
our inability to maintain, governmental permits; equipment failure;
dam failures and the costs of repairing such failures; exposure to
force majeure events; exposure to uninsurable losses; adverse changes
in currency exchange rates; availability and access to
interconnection facilities and transmission systems; health, safety,
security and environmental risks; disputes, governmental and
regulatory investigations and litigation; 
our operations could be affected by local communities; losses
resulting from fraud, bribery, corruption, other illegal acts,
inadequate or failed internal processes or systems, or from external
events; risks relating to our reliance on computerized business
systems; general industry risks relating to operating in the North
American and Brazilian power market sectors; advances in technology
that impair or eliminate the competitive advantage of our projects;
newly developed technologies in which we invest not performing as
anticipated; labour disruptions and economically unfavourable
collective bargaining agreements; our inability to finance our
operations due to the status of the capital markets; the operating
and financial restrictions imposed on us by our loan, debt and
security agreements; changes in our credit ratings; changes to
government regulations that provide incentives for renewable energy;
our inability to identify sufficient investment opportunities and
complete transactions; risks related to the growth of our portfolio
and our inability to realize the expected benefits of our
transactions; our inability to develop existing sites or find new
sites suitable for the development of greenfield projects; risks
associated with the development of our generating facilities and the
various types of arrangements we enter into with communities and
joint venture partners; Brookfield Asset Management's election not to
source acquisition opportunities for us and our lack of access to all
renewable power acquisitions that Brookfield Asset Management
identifies; our lack of control over our operations conducted through
joint ventures, partnerships and consortium arrangements; our ability
to issue equity or debt for future acquisitions and developments will
be dependent on capital markets; foreign laws or regulation to which
we become subject as a result of future acquisitions in new markets;
and the departure of some or all of Brookfield's key professionals. 
We caution that the foregoing list of important factors that may
affect future results is not exhaustive. The forward-looking
statements represent our views as of the date of this news release
and should not be relied upon as representing our views as of any
date subsequent to May 2, 2014, the date of this news release. While
we anticipate that subsequent events and developments may cause our
views to change, we disclaim any obligation to update the
forward-looking statements, other than as required by applicable law.
For further information on these known and unknown risks, please see
"Risk Factors" included in our Form 20-F. 
This news release contains references to adjusted EBITDA, funds from
operations and adjusted funds from operations, which are not
generally accepted accounting measures under IFRS and therefore may
differ from definitions of adjusted EBITDA, funds from operations and
adjusted funds from operations used by other entities. We believe
that these are useful supplemental measures that may assist investors
in assessing the financial performance and the cash anticipated to be
generated by our operating portfolio. Neither adjusted EBITDA, funds
from operations nor adjusted funds from operations should be
considered as the sole measure of our performance and should not be
considered in isolation from, or as a substitute for, analysis of our
financial statements prepared in accordance with IFRS.  
References to Brookfield Renewable are to Brookfield Renewable Energy
Partners L.P. together with its subsidiary and operating entities
unless the context reflects otherwise.  
The following table reflects adjusted EBITDA, funds from operations,
adjusted funds from operations, and a reconciliation to net income
for the three months ended March 31: 

(MILLIONS, EXCEPT AS NOTED)                                   2014     2013 
Revenues                                                   $   480  $   437 
Other income                                                     3        2 
Share of cash earnings from equity-accounted investments         7        6 
Direct operating costs                                        (130)    (126)
Adjusted EBITDA(1)                                             360      319 
Interest expense - borrowings                                 (101)    (102)
Management service costs                                       (11)     (12)
Current income taxes                                            (8)      (3)
Less: cash portion of non-controlling interests                             
  Preferred equity                                              (9)      (7)
  Participating non-controlling interests - in operating                    
   subsidiaries                                                (46)     (33)
Funds from operations(1)                                       185      162 
Less: sustaining capital expenditures(2)                       (14)     (14)
Adjusted funds from operations(1)                              171      148 
Add: cash portion of non-controlling interests                  55       40 
Add: sustaining capital expenditures                            14       14 
Other items:                                                                
  Depreciation                                                (126)    (128)
  Unrealized financial instrument gain                           -       16 
  Share of non-cash loss from equity-accounted investments      (6)      (2)
Deferred income tax recovery                                    (2)      (1)
Other                                                           19       (2)
Net income                                                 $   125  $    85 
Basic and diluted earnings per LP Unit(3)                  $  0.29  $  0.23 
(1)  Non-IFRS measures. See "Cautionary Statement Regarding Use of Non-IFRS 
(2)  Based on long-term capital expenditure plans.                          
(3)  Average LP Units outstanding during the period totaled 133.0 million   
     (2013: 132.9 million).                                                 

The following table illustrates generation results for the three
months ended March 31, 2014 on a proportionate basis, while adjusting
for the share from facilities in which we own less than 100%. 

                            Proportionate             interests Consolidated
                Wholly- Partially-     Equity-                              
Generation        owned      owned   accounted                              
 (GWh)(1)        assets     assets investments  Total                       
  United States   1,283        531          66  1,880       711        2,591
  Canada          1,309          -           1  1,310         1        1,311
  Brazil(2)         978         17          27  1,022        77        1,099
                  3,570        548          94  4,212       789        5,001
Wind energy                                                                 
  United States      62         45           -    107       166          273
  Canada            337          -           -    337         -          337
                    399         45           -    444       166          610
Other               100          -           -    100         -          100
 -2014            4,069        593          94  4,756       955        5,711
 -2013            4,074        419         141  4,634       901        5,535
(1)  For assets acquired or reaching commercial operation during the year,  
     this figure is calculated from the acquisition or commercial operation 
(2)  In Brazil, assured energy generation levels are used as a proxy for    
     long-term average.                                                     

The following table illustrates our financial results for the three
months ended March 31, 2014, including revenues, adjusted EBITDA and
funds from operations on a proportionate basis, while adjusting for
our share from facilities in which we own less than 100%: 

                           Wholly-    Partially-       Equity-              
(MILLIONS, EXCEPT AS         owned         owned     accounted              
 NOTED)                     assets        assets   investments        Total 
Revenues              $        327  $         74  $          - $        401 
Other income                     3             -             -            3 
Share of cash                                                               
 earnings from                                                              
 investments                     -             -             7            7 
Direct operating                                                            
 costs                         (99)          (13)            -         (112)
Adjusted EBITDA(1)             231            61             7          299 
Interest expense -                                                          
 borrowings                    (70)          (16)            -          (86)
Management service                                                          
 costs                         (11)            -             -          (11)
Current income taxes            (7)           (1)            -           (8)
Preferred equity            (9)(2)             -             -           (9)
Participating non-                                                          
 interests - in                                                             
 subsidiaries                    -             -             -            - 
Funds from operations                                                       
 - 2014(1)            $        134  $         44  $          7 $        185 
Funds from operations                                                       
 - 2013(1)            $        124  $         32  $          6 $        162 
                         interests  Consolidated 
(MILLIONS, EXCEPT AS                             
Revenues              $         79  $        480 
Other income                     -             3 
Share of cash                                    
 earnings from                                   
 investments                     -             7 
Direct operating                                 
 costs                         (18)         (130)
Adjusted EBITDA(1)              61           360 
Interest expense -                               
 borrowings                    (15)         (101)
Management service                               
 costs                           -           (11)
Current income taxes             -            (8)
Preferred equity                 -            (9)
Participating non-                               
 interests - in                                  
 subsidiaries              (46)(2)           (46)
Funds from operations                            
 - 2014(1)            $          -  $        185 
Funds from operations                            
 - 2013(1)            $          -  $        162 
(1)  Non-IFRS measures. Refer to "Cautionary Statement Regarding Use of Non-
     IFRS Measures".                                                        
(2)  Represents third party interests' funds from operations.               

Brookfield Renewable Energy Partners L.P.
Zev Korman
Vice President, Investor and Media Relations
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