The province’s largest independent run-of-river project has started selling power into the provincial grid after three years of construction.
Vancouver’s Plutonic Power Corp. (TSX:PCC) announced Monday morning that its Toba Montrose General Partnership with GE Energy Financial Services has started selling power generated by the 196-megawatt East Toba and Montrose run-of-river project located approximately 100 kilometres northeast of Powell River.
Donald McInnes, vice-chair and CEO of Plutonic Power said, “The achievement of commercial operations and sale of electricity from the two Toba Valley facilities marks a significant transformational milestone.”
Plutonic’s share price jumped 4.5% in mid-morning trading to $2.55 on the TSX following announcement of the deal.
The $660 million project includes a 73-megawatt run-of-river facility in the Montrose Creek drainage basin and a 123-megawatt facility in the East Toba River drainage basin along with a new 150-kilometre transmission line connecting the projects to BC Hydro’s electricity grid.
McInnes said the project, while 98% completed, remains in the hands of Peter Kiewit Sons Co., which constructed the project under a fixed price contract. Final commissioning of the project is expected to be completed by the end of the third quarter, after which time about a dozen people will be employed to run the facilities. He expected the company will begin reporting revenue in its fourth quarter this year.
Until then, revenue from power sales will be credited against the $663 million budgeted capital expenditures associated with the project. As a bonus for early completion, Peter Kiewit Sons is entitled to a portion of energy sales from the East Toba facility prior to July 1, 2010 and from the Montrose facility prior to November 1, 2010.
Plutonic is also working to complete the province’s largest wind power project, erecting 48 wind towers near Chetwynd as part of the 144-megawatt Dokie wind project. McInnes said construction is expected to be completed in October with commissioning of the project carrying on until early 2011.
Plutonic’s share price range during the past week: between $2.40 and $2.47; 52-week high: $4; 52-week low: $2.33.