Canadian Hydro Developers Inc. - Green, Renewable, Sustainable, Energy

	Dunvegan Hydro Project

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July 2008 Update:

On July 16, 2008, three panel Members were appointed to a joint federal-provincial panel established to review the proposed Dunvegan Hydroelectric Project. The establishment of the Joint Panel is the result of some complicated legal issues related to recent case law that has unfortunately affected this Project at a very late stage.

While disappointed that the Project is being subjected to this level of review, Canadian Hydro has always been willing to go above and beyond when it comes to environmental assessment and review. We will continue to work through this process and are optimistic the collaborative work of employees, consultants and the local community, along with the diligent oversight of provincial and federal regulators over the past decade, will result in approval of the Dunvegan Hydroelectric Project by the Joint Panel.

Now that the Joint Panel is appointed, they have up to 45 days to either determine sufficiency of the evidentiary record, or request additional information on the Project. Once the Panel determines evidentiary sufficiency, it has to give a minimum 30 days notice of hearing. Following the close of the hearing, the Panel has 90 days to issue its decision.

Construction is expected to occur over four years and generate approximately 500 person-years of employment. Construction could commence as early as next spring if the hearing and related approvals proceed in a timely manner.

The proposed Dunvegan Hydroelectric Project is an environmentally responsible, low-impact development of the hydroelectric potential of the Peace River. The project is based on a world-class renewable energy resource that will be a 100-year asset for the community and province, and demonstrates Canadian Hydro’s commitment to the sustainable development of northern energy resources.

The Project will feature innovative fish passageways for upstream and downstream migrating fish and has also resulted in the creation of a state-of-the-art ice model that is specific to the Peace River.

Canadian Hydro is extremely pleased with the strong local support and will continue to work with local communities and stakeholders, as we have done over the last decade, to ensure concerns are identified and effectively addressed.

Background Information on the Joint Panel

A joint panel agreement between the Government of Canada, the Natural Resources Conservation Board (NRCB) and the Alberta Utilities Commission (AUC) is now released after receiving public comments in early May 2008. It describes the process for conducting the joint panel review and details on the scope of the environmental assessment.

The joint panel agreement, biographical information on the panel members along with more information on this project are available on the Web sites of the Canadian Environmental Assessment Agency Registry number 04-05-2996, the NRCB and the AUC.

March 2008 Update:

On January 25, 2008, Glacier Power Ltd. received notice that Mr. Mike Boyd, a Director under the Alberta Environmental Protection and Enhancement Act (EPEA), had advised the Natural Resources Conservation Board (NRCB) that the Environmental Impact Assessment, submitted in 2006 in support of the Dunvegan Hydroelectric Project application, had been deemed complete pursuant to Section 53 of the EPEA.

On January 28, 2008, the Alberta Energy and Utilities Board and NRCB (together, the Boards) held a pre-hearing meeting regarding the Dunvegan Hydroelectric Project. The purpose of the pre-hearing meeting was to allow those interested in participating in a public hearing to identify themselves and make submissions outlining their position(s) with respect to the proposed Project, and outline preferences in terms of the scope, location, and timing of the formal hearing. Glacier Power was also given the opportunity to express its position on the topics identified by the interested parties, and requested that a hearing be held as soon as possible, in Fairview, Alberta.

The result of the pre-hearing meeting was a decision by the Boards to hold a focused public hearing in Fairview, Alberta, scheduled to commence on April 22^nd, 2008 and run no longer than the 25^th of April. However, on March 19^th, 2008, Glacier Power Ltd. and other interested parties received notice from the NRCB that in order to assist with the fulfillment of federal legal requirements, the federal government had requested that the Boards postpone the April 22^nd hearing. In the spirit of the Canada-Alberta Agreement on Environmental Assessment Cooperation, the Boards agreed to post-pone the hearing. Glacier Power Ltd. is still awaiting clarification on the nature of the referenced federal legal requirements, and will provide additional information on the re-scheduled hearing as it becomes available.

The pre-hearing decision report and information regarding hearing postponement can be found on the NRCB website at: http://www.nrcb.gov.ab.ca/nrp/Currentapplications.aspx?id=3544.

December 2007

On November 13^th, 2007, Glacier Power Ltd. filed its response to the 234 questions included in the Supplemental Information Request (SIR) for the proposed Dunvegan Hydro Project (the Project). The questions were received in July 2007 from the Natural Resources Conservation Board on behalf of all involved regulatory agencies, provincial and federal, based on their review of the Environmental Impact Assessment (EIA) submitted in November 2006. Electronic and hard copies of the completed document were distributed, not only to regulatory agencies, but to all other interested parties who initially received or requested a copy of the EIA. Anyone else who is interested in seeing the SIR response document can access the information here, at Alberta Environment (AENV) offices near the Project site, as well as town and municipal offices near the Project site.

Glacier Power Ltd. is hopeful that, with the SIR response document filed, it will be possible to enter the next phase of the regulatory approval process quickly. Glacier Power Ltd. expects the next phase of the process to consist of a pre-hearing, and potentially a full public hearing, both of which would be administered and presided over by members of the Natural Resources Conservation Board and the Alberta Energy and Utilities Board. This phase involves ongoing consultation with stakeholders. Interested parties are encouraged to contact Glacier Power Ltd. with any questions regarding the Project or regulatory process.

October 2007

Since the previous update in March of this year, one significant milestone has been achieved in that the various regulatory agencies charged with reviewing the proposed Dunvegan Project EIA have completed their initial review. The result of that review is a set of questions referred to as the Supplemental Information Request (SIR) that was provided to Glacier Power Ltd. on July 17th. July is a number of months later than was anticipated for EIA review completion and delivery of the SIR in the schedule originally provided by Alberta Environment (AENV).

The SIR contains numerous questions that relate to the information provided in the EIA, as well as requests for additional information that was not included in the EIA. Some of the questions are very technical in nature and require additional work by Glacier Power’s various experts and scientists, and others are simply a matter of editing. Glacier Power’s goal is to provide the SIR response to regulators in early October. By doing so, Glacier Power hopes to get back on schedule and complete the EIA process along the timelines originally presented by AENV.

Glacier Power is working closely with the departments who posed the questions, as well as their own consultants to ensure the SIRs are answered clearly and completely. Representatives for the majority of departments reviewing the EIA attended a sight tour with representatives from Glacier Power in an effort to ensure a full understanding the proposed Project. When the response to the SIRs is complete and has been submitted to regulators, the information will be publicly available through various AENV offices, as well as on this website.

Another development since the last update was provided is that the public response to the joint notice mentioned in the previous update resulted in Glacier Power receiving five statements of concern (SOCs). SOCs are letters submitted by members of the public who have concerns regarding potential impacts from the Project and would like them considered in reference to the proposed development. Glacier Power Ltd. is currently working with each of the groups who submitted SOCs to address all of the concerns raised.

March 2007

Applications for the Dunvegan Hydroelectric Project were submitted to Alberta Environment, the Natural Resources Conservation Board, and the Alberta Energy and Utilities Board in November 2006. An Environmental Impact Assessment (EIA) Report was submitted in support of the applications. The final EIA Document can be downloaded from the Document Library. Submission of these applications and the Environmental Impact Assessment Report triggered a formal regulatory review process. At the beginning of March 2007 public notice of the application for the Dunvegan Hydroelectric Project was jointly published by Alberta Environment, the Natural Resources Conservation Board, and the Alberta Energy and Utilities Board in several Alberta newspapers. A copy of the Joint Notice can be seen by clicking here. The notice provides contact information for those wanting to file statements of interest or concern with Alberta Environment, and sets a deadline of April 26, 2007 for the submission of those statements. The notice provides further instruction on how to register withe Boards to receive notices respecting the review process.

February 2007

Public Information Sessions - Dunvegan Environmental Impact Assessment

See your local newspaper or click below for more details

- Open House Feb 20-22 (Fairview, Peace River, Spirit River)

- Open House Feb 27 (Tangent)

November 2006

Glacier Power Limited has recently submitted formal applications for approval to construct and operate the Dunvegan Hydroelectric Project, a 100 MW low-head hydroelectric plant located on the Peace River approximately 80 kilometers north of the City of Grande Prairie, 20 kilometers south of the Town of Fairview, and 85 kilometers east of the Alberta-British Columbia border.

Applications have been submitted to Alberta Environment for approval under the Water Act, Alberta Energy and Utilities Board for approval under the Hydro and Electricity Act, and the Natural Resources Conservation Board under the Natural Resources Conservation Board Act.

To support the above applications, Glacier Power has compiled the Dunvegan Hydroelectric Project Environmental Impact Assessment Final Report in accordance with the Final Terms of Reference issued by Alberta Environment (July 2004). The EIA report has been distributed to provincial and federal government agencies, and stakeholders for review. The complete EIA Document can be downloaded from our project document library.

Notice of Open Houses June 13-15, 2006

June 2006

After over two years of development, the Peace River Ice (PRICE) model has recently been completed. The development and calibration of PRICE, and its subsequent use to assess potential changes to the ice regime related to the Dunvegan Project, has been the main information gap Glacier Power has been working and waiting to fill prior to submitting new application documents to regulatory agencies. Now that the model is complete, Glacier is pushing hard to fill that information gap, and submit new applications to the Alberta Energy and Utilities Board, and the Natural Resources Conservation Board. The target submission date is currently September.

Prior to submitting the applications, Glacier has been working to update local communities, First Nations, and interested stakeholders on the results of our work over the last three years, not only with respect to ice, but to fish and fish passage, and project design and optimization. We recently held three public open houses in the communities of Wanham, Peace River, and Fairview. It was exciting to be back in your communities with good news and to once again be talking about moving this project forward.

One question many in attendance in the open houses were asking was “What’s different this time?” In fact the Dunvegan Hydro Project in 2006 is nearly identical to its predecessor in 2002. It is still a concrete, overtopping weir-style structure, with 40 turbines spread across the river, that will raise the water level by about 6 m (20 ft). In 2002, the turbine-generator units we expected to use were rated at 2.0-megawatts (MW) each, for a total project capacity of 80 MW. In 2006, we have been able to increase the capacity of each of the turbine-generator units to 2.5 MW, for a total project capacity of 100 MW. This change came about as a result of some examination of our operational strategy. Today’s operational strategy will see the headpond kept at a roughly constant level, as opposed to letting it fluctuate with normal river flow changes. This will maximize the project head, and results in a better optimization of the project from a power production perspective, without any increased environmental effects. In fact, a more stable headpond may provide benefits for fish habitat, and boaters.

The main physical change to the project has been a movement of the spillway. The spillway is a portion of the powerhouse without turbines, used to control water levels in the headpond with moveable gates that can be lowered completely in the event of very high flows. As a result of the 3 year physical hydraulic modeling studies Glacier undertook to design and refine our fish passage strategy, it was decided that by moving the spillway from its original location adjacent to the north bank of the river to a more central position in the river, we could improve flow conditions for upstream fish passage. Glacier Power, along with numerous dedicated consultants and government representatives, has spent a great deal of time and effort designing and testing a system that we expect to be a showpiece in fish passage technology.

And the final response to the question “What’s different this time?” is that this time, we are ready. Although it has taken longer than anticipated to work through the complex fisheries and ice-related issues, having taken the extra time to deal with these issues has increased our confidence that we have done all that we can to address regulator and stakeholder concerns. Glacier Power has remained fully committed to the development of the Dunvegan Hydro Project since the last review process in 2002, and we are looking forward to building this sustainable, low-impact power project.

This investment in an innovative and sustainable energy project will diversify Alberta’s energy supply, while supporting regional development by investing new capital and creating employment opportunities in a "green" industry.

Canadian Hydro is passionate about building a sustainable energy future through the low-impact development of renewable energy resources. Operating successfully for over 15 years, we have developed a proven business model that balances the interests of investors and the needs of the environment. Our vision is to create hundreds of low-impact green power projects across Canada, supporting a renewable energy industry that will employ thousands of people, while still preserving the natural beauty of the country.

We encourage you to learn more about the Dunvegan Hydroelectric Project and contact us with any questions or comments you might have. You can get in touch with Kelly Matheson, Manager Environmental Affairs at:

Glacier Power Ltd.

500, 1324 – 17th Avenue S.W.

Calgary Alberta, T2T 5S8

Phone: (403) 209-3398

Fax: (403) 244-7388

E-mail: enviro@canhydro.com

To make sure you stay informed of project news and events, please see the “News and Updates” section of this web site.