Days after the province unveiled its new Clean Energy Act, BC Hydro signed a 40-year electricity purchase agreement with a Vancouver-based independent power producer.
The utility said today it will buy electricity from the Upper Toba Valley run-of-river hydroelectric project to be jointly developed by Plutonic Power Corp. (TSX:PCC) and GE Energy Financial Services.
Plutonic's stock rose 4.3% to $3.30 in early day trading on the news, and GE lauded the decision.
"This agreement with BC Hydro marks an important next step in the development of the Upper Toba Valley hydro facility, which will expand GE's renewable energy footprint in Canada and help the British Columbia government meet its aggressive renewable energy targets," said Mark Tonner, managing director and Canadian leader at GE.
Victoria's new Clean Energy Act will expedite Hydro's purchase agreements with power producers to reach energy self sufficiency by 2016.
The Upper Toba is a 124-megawatt project that consists of two run-of-river hydroelectric facilities in the Toba Valley, which is 150 kilometres north of Powell River.
The project has its environmental assessment permits, but has yet to secure financing or a resource development agreement with the Klahoose First Nation.
Plutonic's share price range during the last week: between $3.05 and $3.31; 52-week high: $4.38; 52-week low: $2.08.