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17 July 2006 -- Canadian Hydro Developers, Inc. announced today that a longer than expected approvals process for the 132-MW 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 C$10 million for a capital cost of C$275 million for Melancthon II. Canadian Hydro said the delay will have no impact on its 20-year Renewable Energy Supply II Contract with the Ontario Power Authority.
The extended approvals process is mainly the result of the provincial Environmental Screening Process, which includes the review and approval of the project's Environmental Screening Report. 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 securing other permits and approvals for Melancthon II remains necessary prior to proceeding to construction, delays that may also impact the ultimate in-service date and capital cost for the project.
Canadian Hydro is a developer, owner, and operator of 18 renewable energy generation facilities totaling net 230 MW in operation, with an additional 340 MW nearing construction. The renewable generation portfolio includes water, wind and biomass in the provinces of British Columbia, Alberta, and Ontario.
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