TONBRIDGE POWER EXECUTES MOUS WITH WESTERN AREA POWER ADMINISTRATION FOR FUNDING DEVELOPMENT OF GREEN LINE AND MATL UPGRADE PROJ
August 31 2010 - 7:00AM
PR Newswire (Canada)
TORONTO, Aug. 31 /CNW/ -- TSX Venture Exchange Symbol: TBZ TORONTO,
Aug. 31 /CNW/ - Tonbridge Power Inc. (TSXV-TBZ) ("Tonbridge Power"
or the "Company") is pleased to announce that it has executed two
Memoranda of Understanding, ("MOUs"), with the Western Area Power
Administration ("Western") an agency of the U.S. Department of
Energy (DoE), to further review and evaluate its proposed Green
Line and MATL Upgrade projects. The MOUs outline a framework for
cooperation between Tonbridge and Western for funding of investment
in, and development of both projects. The MOUs contemplate that
Western and Tonbridge will pursue an aggressive schedule to
complete the evaluative work required and to proceed to definitive
project financing agreements, subject to usual final approvals.
Such definitive agreements would outline the project scope,
governance, ownership participation, the rights and obligations of
each party, interest rates and repayment structure as well as
provide for funding construction. The MOUs were executed in
accordance with the requirements in section 402 of the Recovery Act
and respect the evaluation criteria set out in Western's
Transmission Infrastructure Program (TIP). The Green Line and the
MATL upgrade projects were chosen by Western from numerous
applications proposing several dozen projects seeking Western's
support and participation. The Green Line Project is a 230-500-kV
transmission line under development that would connect the southern
end of the MATL line near Great Falls, Mont., to the Colstrip line
at either Townsend or Garrison, providing service to the Bonneville
Power Administration (BPA) system. Initial development commenced in
November 2009 after Tonbridge concluded Agreements with Gaelectric
North America Inc. and later with Invenergy Wind Development LLC as
the project's two Anchor Shippers. The MATL project is designed to
increase the current MATL path rating from 300 MW to as much as 600
MW, but only as system stability and flow conditions permit.
Currently the MATL line is under construction and, when completed,
has the physical capacity to transmit more than its present 300-MW
path rating would permit. This upgrade project's scope and schedule
will coincide with the development of the Green Line and will
include flow, congestion and design studies, path rating and permit
applications as well as possible substation investments. The MATL
Upgrade would provide access to new wind generation assets in the
region and would enable Western to obtain 50 MW of northbound
capacity on the MATL line as agreed in the 2009 Construction
Financing Agreement executed on October 27, 2009, between Tonbridge
and Western. Chief Executive Officer, Johan van't Hof remarked,
"These MOU's are an important step in developing the Green Line and
the MATL upgrade. We are proud of the relationship we enjoy with
Western and more than appreciative of their technical and operating
assistance to date in MATL, and look forward to continuing to work
with their people and their Transmission Infrastructure Program in
bringing these two projects to fruition." Western is a power
marketing agency of the U.S. Department of Energy. For more
information, please go to www.wapa.gov. Tonbridge Power Inc. is a
Toronto-based developer of electrical transmission assets, whose
principal asset is a 100% interest in MATL. Forward-Looking
Information This news release contains "forward-looking
information", within the meaning of applicable Canadian securities
legislation, concerning the business, operations and financial
performance and condition of the Company. Forward-looking
information includes, but is not limited to, statements with
respect to financing arrangements and related matters. Generally,
this forward-looking information can be identified by the use of
forward-looking terminology such as "proposed", "plans", "expects"
or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or state that certain actions, events or results "may", "could",
"should", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is based on the opinions and
estimates of management at the date the information is made, and is
based on a number of assumptions and subject to a variety of risks
and uncertainties and other factors that could cause actual events
or results to differ materially from those projected in the
forward-looking information. Many of these assumptions are based on
factors and events that are not within the control of the Company
and there is no assurance they will prove to be correct. Factors
that could cause actual results to vary materially from results
anticipated by such forward-looking information include, but are
not limited to: risks related to the financing or construction of
the transmission line and the substation; risks related to the
performance of parties contracting for transmission capacity;
delays in obtaining governmental approvals, permits or project
financing or in the completion of development or construction
activities, requirements for additional capital, government
regulation, environmental risks as well as those factors discussed
in the section entitled "Risk Factors" in the Company's Annual
Information Form for the year ended December 31, 2009 available on
www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information. The Company does not
undertake to update any forward-looking information that is
included herein, except in accordance with applicable securities
laws. Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. %SEDAR: 00020056E Tonbridge Power Inc.,
www.tonbridgepower.com, Johan van't Hof, Chief Executive Officer,
Tel: (416) 850-2150, Email: jvanthof@tonbridgepower.com; Robert van
Beers, Chief Operating Officer, Tel: (416) 850-2150, Email:
rvanbeers@tonbridgepower.com; Robert McFarlane, Chief Business
Officer, Tel: (416) 850-2150, Email: rmcfarlane@tonbridgepower.com;
Brisco Capital Partners Corp., Graeme A. Dick, Tel: (403) 561-8989,
Email: graeme@briscocapital.com
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