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Brookfield Renewable Power Fund Announces Stronger Fourth Quarter and Year-end Results

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^{Published in Business and Finance on Wednesday, February 16th 2011 at 14:40 GMT by Market Wire}  

GATINEAU, QC, Feb. 16 /CNW Telbec/ - (TSX: BRC.UN) - Brookfield Renewable Power Fund (the "Fund") reported today its financial and operating results for the fourth quarter ended December 31, 2010.  Additional information on the Fund's strategy and results can be found in its Letter to Unitholders and Supplemental Information at [ www.brpfund.com ] under Investor Relations/Financial Highlights.

"We are pleased to end 2010 on a positive note with significant improvement in hydrological conditions in the northeast," said Richard Legault, President and CEO. "Following two very challenging quarters, the Ontario region has continued to improve while the Québec region experienced a sharp increase in generation which was 25% above its long-term average. Our overall reservoir levels are above average and are well positioned for the start of the new year."

Total generation in the fourth quarter of 2010 was 1,519 gigawatt hours ("GWh")  as compared to a long-term average of 1,563 GWh. Hydroelectric generation at 1,334 GWh was only slightly below the long-term average of 1,367 and met or exceeded expectations in all regions except Ontario. Wind generation was 185 GWh, slightly below the quarterly average of 196 GWh. The Gosfield Wind farm contributed 39 GWh in the quarter, in line with expectations.

"The Fund continued to build value for unitholders in 2010," added Mr. Legault. "In addition to increasing our distribution by four percent early in the year, we added growth and diversification to our renewable power platform with the commissioning of Gosfield Wind and the acquisition of the Comber Wind project, all while maintaining our financial strength and the quality of our overall portfolio."

NOTE 1. Results for the twelve months ended December 31, 2009 include the contribution from assets acquired in 2009, and a one-time $349 million contract amendment payment which was recognized as an expense in the third quarter of 2009.
NOTE 2. Excludes hydrology insurance.

Fourth quarter revenues were $113.0 million in 2010 as compared to $87.9 million in the prior year, reflecting higher generation, the contribution of Gosfield Wind, and $10 million from hydrology insurance. Income before non-cash items was $54.6 million as compared with $39.3 million in the prior year. For the full year, revenues increased to $343.0 million from $288.0 million reflecting the addition of assets and higher selling prices, and income before non-cash items was $130.7 million compared to $140.0 million in the prior year when excluding a one-time contract amendment payment.

Fourth quarter distributions to unitholders were $34.0 million or 33 cents per unit as compared to $32.8 million or 31 cents per unit in the same period last year. Distributions increased year-over-year as a result of the increase in the Fund's monthly distribution in February 2010.

APPOINTMENT OF NEW CHIEF FINANCIAL OFFICER

The Fund is pleased to announce that Mr. Sachin Shah, CA, has been named Chief Financial Officer. Mr. Shah has spent the last nine years in senior financial roles with Brookfield Asset Management, most recently as Managing Partner, Finance. Mr. Shah succeeds Mr. Donald Tremblay, who is broadening his role within Brookfield overseeing its expanding Power and Utilities platform. Mr. Shah is also the Chief Financial Officer of the Fund's sponsor and significant unitholder, Brookfield Renewable Power Inc.

"The Board expresses its deepest gratitude to Mr. Tremblay for his exceptional financial leadership since the Fund's inception and wishes him ongoing success in his expanded role with Brookfield," said André Bureau, Chairman of the Board of Trustees. "We look forward to continued strong financial direction under Mr. Shah."

LIQUIDITY, CAPITAL PROGRAM AND POWELL RIVER UPDATE

In 2010, the Fund invested $21.1 million in sustaining capital expenditures and $5.8 million in major maintenance, in line with the revised expectations provided in November 2010. The Fund expects to invest $27.9 million and $11.2 million in sustaining capital expenditures and major maintenance, respectively, in 2011. Major projects for 2011 include refurbishment of electrical equipment at the Millinocket station in Maine, a turbine upgrade at the Gorham facility in New Hampshire, intake gate work at the Mackay station in Ontario and the refurbishment of part of the High Falls civil structure in Quebec.

The acquisition of the Comber Wind project closed in December 2010 and construction is progressing on schedule, including the building of access roads, widening of intersections in anticipation of turbine deliveries and the preparation of foundations. Of the 72 foundations in total, 28 have been excavated and 13 have been poured.

The Fund has renewed the power purchase agreement for its Powell River facility with co-owner Catalyst Paper for an additional five years and with conditions similar to the existing agreement.

At December 31, 2010, the Fund had cash and short-term investments and a deposit with a related party totalling $27.3 million, access to $193.7 million in available credit facilities and $32 million in available hydrology reserve facilities. Accordingly, with total liquidity of $253 million the Fund's financial and liquidity position remains strong and will support its objectives with respect to growth, capital investment and cash distributions to unitholders. 

CONFERENCE CALL

A conference call for investors and media to review the fourth quarter results for 2010 will be held on Thursday, February 17, 2011 at 10:00 a.m. (EST). To participate in the conference call, please dial 416-644-3426 or 1-800-731-5319 toll-free in North America, at 9:50 a.m. (EST). For those unable to participate in the conference call, a taped rebroadcast will also be available through February 19, 2011. To access this rebroadcast, please call 1-877-289-8525 toll-free in North America, and enter the passcode 4402508#. The conference call will also be webcast live on the Fund's website at [ www.brpfund.com ], where it will be archived for three months.

DISTRIBUTIONS

The schedule below sets out the cash distribution history for the last twelve months:

QUARTERLY PREFERRED SHARE DIVIDENDS

The Board of Directors of Brookfield Renewable Power Preferred Equity Inc. has declared the quarterly dividend on its Class A Preference Shares, Series 1, payable on April 15, 2011 to shareholders of record as at the close of business on April 30, 2011.

Information on the Fund's monthly distributions and preferred share quarterly dividends can be found on the company's web site under Investor Relations.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This news release contains forward-looking statements and information within the meaning of the Canadian securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements in this news release include statements regarding the Comber Wind project, the anticipated growth and diversification of the Fund's portfolio, capital expenditures, and the Fund's financial and liquidity position. Forward-looking statements can be identified by the use of words such as "will", "plans", "expected", "intend", "continue", and "in the process", or variations of such words and phrases.  Although the Fund believes that the Fund's anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and expectations, it can give no assurance that such expectations will prove to have been correct. The reader should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. 

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to the board's discretion to declare dividends, changes in hydrology and wind conditions; equipment failure; failure by counterparties to fulfill contractual obligations and failure by the Fund to replace contracts; the Fund's dependence on Brookfield Renewable Power Inc. and potential conflicts of interest between Brookfield Renewable Power Inc., Brookfield Asset Management Inc. and the Fund; failure by the Fund to discover liabilities associated with, and inability of the Fund to successfully integrate, acquisitions; risks associated with the Fund's proposed conversion from an income trust; our ability to execute our growth strategy; and other risks and factors detailed from time to time in the Fund's public filings including the Annual Information Form dated March 26, 2010 under the heading "Risk Factors" and Management's Discussion and Analysis of Financial Results under the headings "Financial Instrument Risks", "Risk Factors" and "Business Environment and Risks". We caution that the foregoing list of important factors that may affect future results is not exhaustive. Except as required by law, the Fund undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or oral, that may be as a result of new information, future events or otherwise.

About Brookfield Renewable Power Fund

Brookfield Renewable Power Fund ([ www.brpfund.com ]) is a premier Canadian income fund and one of the largest power income funds in North America with more than 1,700 megawatts of power generating capacity and average annual production exceeding 6,500 gigawatt hours.

The Fund produces electricity exclusively from environmentally friendly and renewable resources, including 42 high quality hydroelectric generating stations and two wind farms in four distinct geographic regions across North America: Québec, Ontario, British Columbia and New England.

Brookfield Renewable Power Inc., which comprises most of the power operations of Brookfield Asset Management, owns approximately 34% of the Fund's outstanding units on a fully exchanged basis.

The Units are listed for trading on the TSX under the symbol BRC.UN.