Innergex Renewable Energy Inc. (TSX: INE) ("Innergex" or the "Corporation") announces that the 25.3 MW Boulder Creek run-of-river hydroelectric facility located in British Columbia, has begun commercial operation. Innergex owns a 66.7% interest in the hydro facility and Ledcor Power Group Ltd. owns the remaining 33.3%.
"We are extremely proud to announce the commissioning of the Boulder Creek hydroelectric facility, our 18th hydroelectric facility in British Columbia ("BC"). BC is blessed with an abundance of hydro resources that remain largely untapped and our track record shows that when developed properly, we can generate clean and affordable electricity for British Columbians while helping the province and the country achieve their climate change goals," stated Michel Letellier, President and Chief Executive Officer of the Corporation.
The facility is part of the Upper Lillooet River Hydro Project which includes two run-of-river clean energy generation facilities located in the Pemberton Valley: Upper Lillooet River (81.4 MW) and Boulder Creek (25.3 MW). Innergex, in addition to owning 66.7% of the common shares of these two hydroelectric facilities, holds 100% of the preferred shares and therefore receives almost all of the cash flows generated by these facilities.
The 25.3 MW hydroelectric facility is located on crown land, approximately 40 km north of the Village of Pemberton, in the Sea-to-Sky district of British Columbia. Construction began in 2013. The Commercial Operation Date ("COD") Certificate delivered to BC Hydro indicates an effective commissioning date of May 16, 2017.
"This project could not have been done without the expertise and commitment of our dedicated and passionate team who overcame many challenges to ensure the successful completion of this project," Letellier said.
Boulder Creek's average annual production is estimated to reach 92,500 MWh, enough to power more than 8,500 households. In its first full year of operation, it is expected to generate revenues and Adjusted EBITDA of approximately $9.0 million and $7.5 million, respectively. All of the electricity the facility produces is covered by a 40-year fixed-price power purchase agreement with BC Hydro, obtained under that province's 2008 Clean Power Call Request for Proposals and which provides for an annual adjustment to the selling price based on a portion of the Consumer Price index.
Date: May 26, 2017