STOCK SYMBOL: GLH.UN/TSX
GATINEAU, QC, June 6 /CNW Telbec/ - Great Lakes Hydro Income Fund
announced today that it has agreed to acquire the Carmichael Falls Generating
Station (the "facility") from Brookfield Power for a purchase price of
C$52.5 million. Brookfield Power owns 50.1% of Great Lakes Hydro Income Fund.
The hydroelectric facility built in 1991 was recently acquired by
Brookfield Power as part of a transaction to acquire all of the facilities
owned by Beaver Power. The facility has been operated and maintained by
Brookfield Power for the past three years, and will continue to be managed by
Brookfield Power under a new operating and maintenance contract.
The annual long-term average generation of the facility is approximately
86 gigawatt hours. All of the power produced by this facility is sold under a
long-term power purchase agreement with the Ontario Electricity Financial
Corporation.
"As we continue to add value to unitholders, we are very pleased to
approve the expansion of the Fund's portfolio with the addition of a high
quality generation facility," said AndrDe Bureau, Chairman of the Board, on
behalf of the Independent Committee. "The acquisition will be accretive to
unitholders, and should add to our annual distribution on a sustainable basis,
following the close of the acquisition," added Mr. Bureau.
"In support of Great Lakes Hydro Income Fund's growth strategy, we are
happy to transfer Carmichael Falls into the Fund. This facility's
characteristics match the Fund's acquisition criteria, as a long-life hydro
asset in Canada, with a long-term contract," said Harry Goldgut, Chairman and
Chief Executive Officer, Brookfield Power.
The transaction is conditional on approvals of regulatory agencies and
other customary closing conditions and is expected to close later this
quarter. The terms of the acquisition have been approved by the Independent
Trustees of the Board.
For more information on the facility and the power purchase agreement
visit:
http://www.greatlakeshydro.com/hydroOperations/hydroOperations_ontario.cfm
Forward-Looking Statements
This new release may contain forward-looking statements concerning the
Great Lakes Hydro Income Fund ("Fund") business and operations. Forward
looking statements can be identified by the use of words, such as "long-term",
"should", "will", "expected", or variations of such words and phrases or state
that certain actions, events or results "will" be taken, occur or be achieved.
Forward looking statements involve assumptions, known and unknown risks,
uncertainties and other factors which may cause the actual results or
performance to be materially different from any future results or performance
expressed or implied by the forward statements. More details relating to risk
factors can be found in the Fund's annual information form in the section
entitled Risk Factors.
Examples of such statements include, but are not limited to factors
relating to production and the business, financial position, operations and
prospects for the Fund. They include (1) the Fund's level of generation; (2)
the Fund's cost of production; (3) interest rates as they bear on the Fund's
indebtedness; (4) planned capital expenditures; (5) the impact of changes in
the Canadian dollar - U.S. dollar on the Fund's costs and results of
operations; the negotiation of collective agreements with its unionized
employees; (6) business and economic conditions; (7) the legislation governing
air emissions, discharges into water, waste, hazardous materials and workers'
health and safety as well as the impact of future legislation and regulations
on expenses, capital expenditures and restrictions on operations; (8)
regulatory investigations, claims, lawsuits and other proceedings; and (9)
reliance on the guaranteed price for electricity by Brookfield Power Inc.
Actual results and developments are likely to differ, and may differ
materially, from those expressed or implied in the forward-looking statements
contained herein, and as a such, you are cautioned not to place undue reliance
on these forward-looking statements.
These forward-looking statements represent our views as of the date of
this news release. While the Fund anticipates that subsequent events and
developments may cause the Fund's views to change, the Fund disclaims any
obligation to update these forward-looking statements. These forward-looking
statements should not be relied upon as representing the Fund's views as of
any date subsequent to June 6, 2006, the date of this news release.
ABOUT GREAT LAKES HYDRO INCOME FUND
Great Lakes Hydro Income Fund is a premier Canadian income fund and one
of the largest power income funds in North America with 995 megawatts of power
generating capacity and an average annual production of 3,788 gigawatt hours.
Great Lakes Hydro Income Fund produces electricity exclusively from
environmentally friendly hydroelectric resources. The Fund owns, operates and
manages 25 high quality hydroelectric generating stations located on seven
river systems in four distinct geographic regions across North America:
Quebec, Ontario, British Columbia and New England.
Brookfield Power, which comprises the majority of the power operations of
Brookfield Asset Management, owns 50.1% of the Fund's outstanding units. Great
Lakes Hydro Income Fund units are listed for trading on the Toronto Stock
Exchange under the symbol GLH.UN.
%SEDAR: 00013106EF
