Brookfield Renewable Power Fund Reports Second Quarter Results

GATINEAU, QC, Aug. 9 /CNW Telbec/ - (BRC.UN) - Brookfield Renewable Power Fund (the "Fund") today reported its financial and operating results for the second quarter ended June 30, 2010. The Fund provides additional information on its strategy and results in its Letter to Unitholders and Supplemental Information available at www.brpfund.com under Investor Relations/Financial Highlights.

Hydroelectric generation in the quarter totaled 993 gigawatt hours ("GWh") as compared to 1,149 in the same period last year and a long-term average of 1,627 GWh. Generation of 219 GWh from assets acquired in August 2009 was more than offset by lower generation due to below average inflows in Ontario and Québec. Generation in the New England and British Columbia regions was in line with their long-term averages. Wind generation of 103 GWh was less than expected, however availability remained strong at 98 per cent and revenues were not affected due to the long-term wind levelization agreement in place until 2019.

"Like many other power producers, our generation levels in Ontario and Québec reflected the unusually low levels of precipitation in the second quarter - among the lowest on record," said Richard Legault, President and CEO, "While this type of hydrology is uncommon, the Fund's flexible operating profile and strong financial position allow it to manage this variability when it does occur."

Construction of the Gosfield Wind project is progressing according to schedule, with the completion of access roads, the substation entrance structure and all 22 turbine foundations. Turbine and component deliveries have been completed, installations are proceeding as planned and commercial operation of the project remains scheduled for the fall of 2010.

Second quarter revenues were $67.4 million as compared to $65.4 million in the same period in 2009, reflecting a higher guaranteed rate for generation from the Fund's Lièvre and Mississagi facilities. Income before non-cash items was $19.2 million, down from $33.5 million in the second quarter of 2009. For the first six months of 2010, revenues increased to $178.6 million from $123.4 million in the first half of 2009, and income before non-cash items rose to $73.5 million from $63.3 million for the same period last year.

FINANCIAL AND OPERATING HIGHLIGHTS

    
    -------------------------------------------------------------------------
    Unaudited                         Three months ended    Six months ended
                                                 June 30             June 30
    CDN $ millions, except otherwise      2010      2009      2010      2009
     noted
    -------------------------------------------------------------------------
    Revenues                           $  67.4   $  65.4   $ 178.6   $ 123.4
    Income before non-cash items          19.2      33.5      73.5      63.3
    Distribution                          34.0      16.8      67.6      33.5
    Per unit ($)
    Income before non-cash items          0.18      0.62      0.70      1.18
    Distribution                          0.33      0.31      0.65      0.63
    Power generated (GWh)                1,096     1,271     2,757     2,432
    Average price ($/MWh)                61.50     51.47     64.78     50.74
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Second quarter distributions to unitholders were $34.0 million or 33 cents per unit as compared to $16.8 million or 31 cents per unit in the same period last year. Distributions increased year-over-year as a result of the additional units issued in connection with 2009 acquisitions and an increase in the Fund's monthly distribution in February 2010.

In the second quarter of 2010, the Fund invested $5.5 million in sustaining capital expenditures and $1.2 million in major maintenance. Work on the unit rewind and rotor pole refurbishment at the Aubrey Falls generating station in Ontario has been completed and the unit will be brought into service once water levels allow for full electrical commissioning. The Fund currently expects to invest a total of $26.9 million in sustaining capital expenditures and $7.3 million in major maintenance during 2010. At quarter end, total expenditures on the Gosfield wind project were $104.5 million, of which $30.9 million has been financed through the secured credit facility and $29.8 million was included in accounts payable.

At June 30, 2010, the Fund's liquidity position remained solid with cash and short-term investments of $38.1 million. Together with available credit and hydrology reserve facilities, the Fund remains well positioned from a liquidity perspective.

CORPORATE CONVERSION

As previously indicated, the Fund intends to convert from its current structure as an income trust to a corporation, subject to unitholder and regulatory approval. The Fund anticipates that as a corporation it will benefit from enhanced access to capital markets, increased tax planning certainty and improved liquidity. The Fund is advancing its conversion plans and will provide unitholders with further details on the process in the coming months.

CONFERENCE CALL

A conference call for investors and media to review the second quarter results for 2010 will be held on Tuesday, August 10, 2010 at 10:00 a.m. (EDT). To participate in the conference call, please dial 647-427-7450 or 1-888-231-8191 toll-free in North America, at 9:50 a.m. (EDT). For those unable to participate in the conference call, a taped rebroadcast will also be available through August 12, 2010. To access this rebroadcast, please call 1-800-642-1687 toll-free in North America, and enter the passcode 86471527. 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:

    
    RECORD DATE              PAYMENT DATE              DISTRIBUTION PER UNIT
    -------------------------------------------------------------------------
    June 30, 2010            July 30, 2010             10.833 cents
    May 31, 2010             June 30, 2010             10.833 cents
    April 30, 2010           May 31, 2010              10.833 cents
    March 31, 2010           April 30, 2010            10.833 cents
    February 28, 2010        March 31, 2010            10.833 cents
    January 31, 2010         February 26, 2010         10.417 cents
    December 31, 2009        January 29, 2010          10.417 cents
    November 30, 2009        December 31, 2009         10.417 cents
    October 31, 2009         November 30, 2009         10.417 cents
    September 30, 2009       October 30, 2009          10.417 cents
    August 31, 2009          September 30, 2009        10.417 cents
    July 31, 2009            August 31, 2009           10.417 cents
    

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 November 1, 2010 to shareholders of record as at the close of business on October 15, 2010.

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 expected revenues, cash flows and liquidity, expected investing and expenses, ability to manage varied hydrology, the anticipated commissioning of the Gosfield Wind project and the Aubrey Falls generating units, and the conversion to a corporation and expected benefits therefrom. Forward-looking statements can be identified by the use of words such as "will", "continued", "positions", "expects", "look forward", "anticipated", "have positioned" 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 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 to a corporation; 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 for the fiscal year ended December 31, 2009 under the headings "Business Environment" and "Risk Factors". 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 1,600 megawatts of power generating capacity and average annual production exceeding 6,350 gigawatt hours.

The Fund produces electricity exclusively from environmentally friendly and renewable resources. The Fund indirectly owns or holds interests in 42 high quality hydroelectric generating stations and one wind farm in four distinct geographic regions across North America: Québec, Ontario, British Columbia and New England.

Brookfield Renewable Power Inc., which comprises all of the power operations of Brookfield Asset Management, owns approximately 42% 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.

%SEDAR: 00013106EF

For further information: please visit www.brpfund.com or contact: Zev Korman, Director, Investor Relations and Communications, Brookfield Renewable Power Fund, Tel: [phone], [email protected]