Great
Lakes Hydro Income Fund Approves Carmichael Falls Acquisition
Gatineau, Quebec, June 6, 2006 – 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 André 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.
For more information, please visit our web site at www.greatlakeshydro.com
or contact:
Shelley Moorhead
Director, Corporate Communications and Investor Relations
Tel: (819) 561-8072
e-mail: shelley.moorhead@greatlakeshydro.com
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