Toronto, June 9, 2010 - First Asset PowerGen Fund (the "Fund") (TSX: PGT.UN), would like to provide an update on the status of the process to enhance the value of Confederation Power Inc. ("Confederation") to the Fund and its unitholders. As previously announced, the Fund retained a nationally recognized investment bank to help it assess strategic alternatives to enhance the value of Confederation to the Fund, including through a possible sale of some or all of the shares or assets of Confederation. This process is on-going, and the Fund is currently in discussions with several potential purchasers. If a proposal acceptable to the Fund is received, the Fund would expect to complete a transaction in the third quarter of 2010. No assurance can be given that a transaction on terms acceptable to the Fund can be completed. The Fund will continue to assess all available alternatives and opportunities.
In addition, the Fund would like to provide an update on the operational affairs of Confederation, after having received a briefing from Confederation's senior management. Management has advised that over the last quarter Confederation has been awarded three power purchase agreements totaling 37 MW of contracted wind output.
- Confederation was awarded a 25MW energy purchase agreement ("EPA") by the Ontario Power Authority for its Goulais Wind Project. The Goulais Wind Project is being designed as a 25 MW wind farm, located just north of Sault Ste. Marie. The project is close to the east shore of Lake Superior, providing a promising wind regime. The energy produced will be purchased under contract by the Ontario Power Authority through their Feed in Tariff program. The project is expected to be in service by early 2013.
- Confederation has been notified by SaskPower that it had been selected for award of a 10MW EPA for its Shooter Hill Wind Project, located approximately 18 km south-southwest of Riverhurst, Saskatchewan.
- Confederation was awarded a 1.6 MW power purchase agreement for the expansion of its existing 17.5 MW Glace Bay, Nova Scotia Wind Power Project. The expansion is expected to be completed by the end of 2011.
Finally, in respect of Confederation's hydro projects in British Columbia, Confederation received final notification from BC Hydro that the projects it submitted in the 2008 Clean Power Call would not receive offers to enter into EPA's. Confederation anticipates bidding its BC hydro projects into future BC clean power calls, or through programs outlined in BC's new Clean Energy Act.
For more information, please contact Rob MacNiven, Investor Relations, First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.