Brookfield
Power to Acquire Two Hydroelectric Plants
in West Virginia
Gatineau, Quebec, August 28, 2006 –
Brookfield Power announced today that it has entered into
agreements with Alloy Power LLC (“Alloy”) and
West Virginia Alloy LLC (“WVA”) under which Brookfield
Power will acquire Alloy’s two hydroelectric generating
plants in West Virginia, and subsequently sell power to WVA
for its integrated ferroalloy smelter under a 15 year contract.
Brookfield Power will also manage power consumption at WVA’s
smelter by optimizing its supply sources, which include the
two hydro facilities as well as the smelter’s thermal
generating facilities.
The hydro facilities comprise the Hawks Nest and Glen Ferris
generating stations, which are located on the New River and
Kanawha River in West Virginia, respectively. Together they
have a total installed capacity of 107 megawatts and produce
on average 526 gigawatt hours of electricity annually.
“This is an exciting new opportunity for Brookfield
Power,” said Harry Goldgut, Co-Chairman and Chief Executive
Officer, Brookfield Power. “Not only are we adding meaningful
hydro capacity to our portfolio of generating assets but we
are also establishing a presence in West Virginia. In addition,
we will be supplying power under a long-term contract to WVA’s
smelter and employing our operating expertise to optimize
their power sources and manage their electricity costs.”
Arden Sims, WVA’s CEO said “we are very pleased
to have Brookfield as our partner to provide us with long
term power and we are confident in their ability to work with
us in developing efficient use of our power resources.”
The transaction is conditional on approvals of regulatory
agencies and is expected to close by the end of 2006. Financial
details are subject to confidentiality agreements.
-30-
About Brookfield Power
Brookfield Power, the power generation of Brookfield Asset
Management, has developed and successfully operated hydroelectric
power facilities, primarily in North America, for almost 100
years. The portfolio comprises almost 3,500 megawatts of capacity
and includes 137 hydroelectric power generating stations located
on 48 river systems and 2 co-generation facilities, principally
in the northeast North America. (See www.brookfieldpower.com
for more details). Brookfield Asset Management Inc. is an
asset manager. Focused on property, power and infrastructure
assets, the company has over US$50 billion of assets under
management and is co-listed on the New York and Toronto Stock
Exchanges under the symbol BAM. (See www.brookfield.com for
more details).
Brookfield Power
Grace Pollock
Acting Director, Corporate Communications & Investor Relations
Tel: (819) 561-8072
Email: grace.pollock@brookfieldpower.com
Forward Looking Statement
This news release contains forward looking information, including
“forward-looking statements” within the meaning
of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as
amended. The words, “will”, “optimize”,
“expanding” and other expressions which are predictions
of or indicate future events, trends or prospects and which
do not relate to historical matters identify forward-looking
statements. Although Brookfield Power, a wholly owned subsidiary
of Brookfield Asset Management (“Brookfield”),
believes that the anticipated future achievements expressed
or implied by the forward-looking statements and information
are based upon reasonable assumptions and expectations, the
reader should not place undue reliance on forward-looking
statements and information because they involve known and
unknown risks, uncertainties and other factors which may cause
the actual results or achievements of the company to differ
materially from those that are expressed or implied by such
forward-looking statements and information. Factors that could
cause actual achievements to differ materially from those
contemplated or implied by forward-looking statements include:
general economic conditions; interest; availability of equity
and debt financing; the ability to effectively acquire high
quality assets for value and integrate acquisitions into existing
operations; continued demand by institutional investors for
Brookfield’s asset classes; recognition in the capital
markets of Brookfield’s value as an asset manager relative
to comparative asset managers; equipment failures, and other
risks and factors described from time to time in the documents
filed by the company with the securities regulators in Canada
and the United States including in the Annual Information
Form under the heading “Business Environment and Risks.”
The company undertakes no obligation to publicly update or
revise any forward-looking statements or information, whether
as a result of new information, future events or otherwise.
|
