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TONBRIDGE POWER INC. - 2010 SECOND QUARTER RESULTS AND CONSTRUCTION PROGRESS

^{Published on 2010-08-31 18:00:33 - Market Wire}
 

 - Pole insertions commenced today, August 31, 2010; - A notice to proceed with construction was issued on June 20, 2010 under the Engineering Procurement and Construction agreement and is scheduled for a mid-2011 in-service date and on budget; - Construction work commenced with the construction of the Marias substation in June; - Required materials have been ordered, with many arriving at the two staging areas at Craddock, Alberta and Shelby, Montana; - The contract to ship the Phase Shifting Transformer ("PST") from Germany has been finalized and the shipping process has begun. The PST is expected to be on site mid November, 2010 in Lethbridge; - Sufficient land easements have been completed allowing construction to proceed; 

 - On June 28, 2010, the Alberta Utilities Commission extended the MATL permit, which was to expire in December 31, 2010 and which now requires construction completion by December 31, 2011; - On June 30, 2010, the National Energy Board ("NEB") denied the review and variance application of the landowners to amend the NEB permit, which was filed in November, 2009; - On August 18, 2010, the NEB confirmed that all required construction and environmental conditions of the NEB permit have been satisfied; - On August 27, the AUC denied a permit review and variance application filed by landowners with early in 2010; - The Alberta Surface Rights Board has issued 21 right-of-entry orders to date and rejected none of the company's requests for such orders; - All material crossing agreements have been received or are now filed with counterparties; - A total of 110 miles is now under easement from Marias north to 10 miles north of Highway 61. Construction has started on this section; - The US Army Corp of Engineers granted a federal wetlands temporary construction impact permit for five specific sites north of Marias; 

 - As of June 30, 2010, the Corporation had drawn down US$38.0M under the Western construction facility, and has received a further US $21.9M to August 27, 2010 to fund project construction costs and accruals; - Cash resources and aggregate favourable budget variances to date continue to indicate that the Corporation has sufficient resources to complete the construction. - In accordance with Canadian GAAP, the Company has determined that it is now more likely than not that to recover the tax benefit from past non capital losses, resulting in a $9.0M future income tax benefit reflected and recorded in this quarter.