MONTREAL, Oct. 21 /CNW Telbec/ -- Boralex Inc. ("Boralex" or the "Corporation") announces that it has obtained a better wind power rate for its projects that qualify under the Renewable Energy Standard Offer Program (RESOP), thanks to new Ontario rules to promote renewable energy.
The first four Boralex wind farms at the Thames River site in southern Ontario, now in its final construction phase, will benefit from a rate of $121 per MWh instead of the $110 per MWh currently offered under the RESOP program. The new rules also allow Boralex to recover 100% of the funding under the federal ecoEnergy program, which represents an additional $10 per MWh instead of $5 (or 50% of the eligible amount), as set out in the original program. This change will impact the total annual revenues of approximately $1.7 million. The wind power facilities are scheduled to start up in the next few weeks.
Furthermore, under Advanced RESOP rules, the Corporation will be able to qualify five other projects with an installed capacity of an additional 50 MW, under the same conditions, subject to start-up before December 31, 2010.
"These 20-year contracts awarded by Ontario Power Authority give Boralex excellent future prospects in Ontario," says Patrick Lemaire, President and Chief Executive Officer of Boralex Inc.
Boralex is a major private electricity producer whose core business is the development and operation of power stations that generate renewable energy.
Employing over 300 people, the Corporation owns and operates 22 power stations with a total installed capacity of 365 MW in Canada, in the Northeastern United States and in France. In addition, the Corporation has more than 300 MW of power projects under development. Boralex is distinguished by its diversified expertise and in-depth experience in three power generation segments - wind, hydroelectric and thermal. Boralex shares are listed on the Toronto Stock Exchange under the ticker symbol BLX.
Boralex also holds a 23% interest in Boralex Power Income Fund, which has 10 power stations with a total installed capacity of 190 MW in Québec and the United States. These sites are managed by Boralex.
More information is available at www.boralex.com or www.sedar.com.
Certain statements in this release, including those regarding future results and performance, are forward-looking statements based on current expectations. The accuracy of such statements is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions on market and industry, increases in raw material costs, changes in the relative values of certain currencies, fluctuations in selling prices, and other factors listed in the Company's filings with different securities commissions.
The summarized financial statements included in this press release also contain certain financial measurements that are not recognized as Generally Accepted Accounting Principles of Canada (GAAP). To assess the operating performance of its assets and reporting segments, the Corporation uses Earnings before interest, taxes, depreciation and amortization (EBITDA) and Cash flows from operations as performance measurements. These measures are not in accordance with GAAP and do not have a standardized definition prescribed by GAAP. Therefore, they may not be comparable to similar measures presented by other companies. EBITDA is defined in the summarized financial statements included with this press release. Cash flows from operations corresponds to cash flows from operating activities before changes in non-cash working capital items as disclosed in the consolidated statements of cash flows attached in this press release.