Alterra Power Corp. Interim Period Update
TSX : AXY
VANCOUVER, Jan. 28, 2013 /PRNewswire/ - Alterra Power Corp. (TSX: AXY) is pleased to provide the following interim period update prior to its year-end financial reporting, which is expected in late March:
Operations: Alterra's renewable energy output for 2012 was 98% of plan (individual plant details will be reported in March).
Montrose Hydro Facility: The Montrose facility is currently shut for penstock repairs following the December 12 rockslide. Replacement pipe for the 300 meter damaged section has been ordered, and preparations for the repair continue. The company expects the facility to return to full operations this summer. The project's insurers have confirmed that the incident is covered by property and business interruption insurance, and total insurance deductibles related to the rockslide are expected to be less than $1 million for the project, which is 40%-owned by Alterra.
Upper Toba Hydro: Alterra is actively working with a construction contractor to finalize the facility's design and construction costs. Discussions regarding project lenders and partnership arrangements are in progress. Project construction is planned to commence in 2Q 2013.
Drilling at Reykjanes Geothermal Field: The first well in a two-well drilling program has been completed at the Reykjanes field. Initial indications for the completed production well are positive, and further details will follow. Drilling for the second well will commence shortly. The expected cost for the two-well program is $9 million, which will be paid from cash reserves at HS Orka. The new capacity expected to result from the drilling will be used for the planned 80 MW expansion and as reserve capacity for the existing 100 MW plant.
Chile / Peru Partnership: Alterra and Energy Development Corporation (EDC) are actively documenting the next-phase agreement toward full partnership, while EDC continues to conduct its due diligence in parallel. Management expects any final arrangements to be completed within the first half of 2013.
Possible HS Orka Transaction: Alterra continues to discuss the sale of HS Orka with prospective purchasers. Discussions have been complicated by foreign exchange matters and required approvals from the Central Bank of Iceland.
2013 Operating Plan: Alterra expects a solid year of on-budget performance from its six operating plants in 2013, other than the repair time required at the Montrose hydro facility. Further, the company has been focused on improving its cost structure in 2013, and has made the following changes:
- A reduction in development expenses for certain longer-term development projects, resulting in annual savings of approximately $1 million.
- Streamlining of global overhead, including staffing levels, which is substantially completed and expected to result in further direct and indirect annual savings of over $2 million.
- Potential disposition of certain small, non-core development assets which no longer fit Alterra's long term goals.
Further updates on these matters will be provided as part of Alterra's year-end financial reporting.
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company. Alterra operates six power plants totaling 567 MW of capacity, including two geothermal facilities in Iceland, a geothermal plant in Nevada, British Columbia's largest run-of-river hydro facility and the province's largest wind farm. The company's 298 MW share of production capacity generates approximately 1,400 GWh of clean power annually. Alterra also has an extensive portfolio of exploration and development projects, a skilled international team of developers, explorers, builders and operators to support its growth plans.
The company trades on the Toronto Stock Exchange under the symbol AXY and OTC in the United States as MGMXF.
Cautionary Note regarding Forward-Looking Statements and Information
This news release contains certain "forward-looking information" within the meaning of Canadian securities laws, which may include, but is not limited to, statements with respect to future events or future performance, the fulfillment of all conditions precedent to the obligation of the parties under the agreements, required consents and third party approvals. This news release also contains statements with respect to our plans to expand our operations, management's expectations regarding our growth, business prospects and opportunities and energy generation capacities. Such forward-looking information reflects management's current beliefs and is based on information currently available to management.
SOURCE Alterra Power Corp.