Andover, MA, April 11, 2011 - On March 31st, 2011 the Province of Newfoundland and Labrador, Nalcor Energy, Enel Green Power North America, Inc. (EGP NA), CHI Hydroelectric Company, Inc. (CHIH) and CHI Finance, LLC, both subsidiaries of EGP NA, signed a settlement agreement aimed at resolving all issues arising from the Province’s expropriation of CHIH’s interest in the Star Lake Hydro Project in Newfoundland and Labrador. After two years of efforts and negotiations, the parties reached a positive outcome. Under this agreement the Province of Newfoundland and Labrador made a settlement payment to CHIH of 32.8 million Canadian dollars.
As a result of the settlement, EGP NA and its subsidiaries have been compensated for losses incurred when the Government of Newfoundland and Labrador expropriated the 15-megawatt Star Lake Hydroelectric generating power plant on the shore of the Red Indian Lake. This act was part of a Province’s action against Abitibi Consolidated and CHIH was not the intended target of this action. When the expropriation occurred, CHIH was both operator and 49% owner of the facility and was in the process of becoming the sole shareholder in the project through the acquisition of Abitibi Consolidated’s 51% stake.
About Enel Green Power
Enel Green Power is the Enel Group company dedicated to the development and management of power generation from renewable resources around the world, with a presence in Europe, North America and Latin America. It is an industry leader worldwide thanks to some 22 billion kilowatt hours generated from water, sun, wind and geothermal, meeting the energy needs of some 8 million households and avoiding 16 million tonnes of carbon dioxide emissions each year. The company has an installed capacity of more than 6,100 MW, with over 620 facilities around the world and a generation mix that includes wind, solar, hydro, geothermal and biomass.
About Enel Green Power North America
Enel Green Power North America, Inc. (f/k/a Enel North America, Inc.), part of Enel Green Power, is a leading owner and operator of renewable energy plants in North America with projects operating and under development in 20 U.S. states and three Canadian provinces. EGP-NA owns and operates over 70 plants with an installed capacity of around 800 MW powered by renewable hydropower, wind, geothermal and biomass energy. In Canada, the company operates the St. Felicien Biomass facilty in Quebec and the 27 MW St. Lawrence Wind Project in Newfoundland & Labrador. EGP NA owns a pipeline of wind projects including the 76 MW Castle Rock Ridge Wind Project located in Alberta which is under construction.
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E-mail: kossara.marchinkova@enel.com
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