Approval Process Delayed for Canadian Wind Power Project

[] Canadian Hydro Developers announced that a longer than expected approvals process for the Melancthon II Wind Project will result in a change to the anticipated in-service date for the project by up to 12 months to June 30, 2008. The extended approvals process has resulted in an increase of CAD$10 million for a capital cost of C$275 million for Melancthon II. The new in-service date for Melancthon II has no impact on its 20-year Renewable Energy Supply II Contract with the Ontario Power Authority. According to Canadian Hydro, the extended approvals process is mainly the result of the provincial Environmental Screening Process, which includes the review and approval of the Environmental Screening Report (the ESR). During the stakeholder-review period on the ESR, letters of concern and Requests to Elevate the ESR to a higher-level review were received by the Ontario Ministry of the Environment. These letters and requests have resulted in approval of the ESR taking longer in comparison to that for the Melancthon I Wind Plant. Canadian Hydro said it is confident that all expressed issues will be dealt with fairly and the MOE will issue its approval for Melancthon II. Securing other permits and approvals for Melancthon II remains necessary prior to proceeding to construction; delays in which may also impact the ultimate in-service date and capital cost for the project.

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