Victoria CFA Society October 9, 2007 Forward Looking Statement - - PDF document

Victoria CFA Society October 9, 2007

2 This presentation may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this presentation and the Company does not intend, and does not assume any obligation, to update these forward-looking statements. Forward-looking statements relate to future events or the anticipated performance of the Company and reflect management’s expectations or beliefs regarding such future events and anticipated performance. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved", or the negative of these words or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance of the Company to be materially different from any anticipated performance expressed or implied by the forward-looking statements. Such factors include various risks related to the Company’s

• perations, which are detailed from time to time in the Company’s interim and annual financial statements and

management’s discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www. sedar.com. Although the Company has attempted to identify important factors that could cause actual performance to differ materially from that described in forward-looking statements, there may be other factors that cause its performance not to be as anticipated. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Forward Looking Statement

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Plutonic Power Corporation is focused on becoming the pre- eminent supplier of ‘green electricity’ in British Columbia

Vision Vision

Plutonic Power identifies and develops environmentally friendly and economically viable non- storage run of river power projects that will benefit all stakeholder groups and maximize shareholder value.

Mission Statement Mission Statement

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Management and Board of Directors

• Donald McInnes, President & CEO
• Grig Cook, Chief Operating Officer
• Bruce Ripley, Exec. VP. Operations
• Paul Sweeney, Exec. VP. Business Dev
• Robert Poore, Dir Corp. Affairs
• Marc Stachiw, Dir Corp. Development
• Peter Wong, CFO
• Bill Irwin, Dir. Lands Resource Mgmt.
• Elisha Moreno, Dir. Communications
• Tom Syer, Dir. Policy and Regulatory
• Walter Segsworth, Chairman
• R. Stuart (Tookie) Angus
• Dr. Peter Flynn
• Michael Volker
• Dr. William Lindqvist
• Donald McInnes
• Grig Cook

Management Team Management Team Board of Directors Board of Directors

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Capital Structure

• Stock Symbol: PCC:TSX
• Capital Structure

– 39.5 million shares <basic> – 47 million shares <fully diluted>

• Ownership: Insiders : ~11% Institutional: ~60%
• Current Price (Oct 3, 2007): ~ $8.25
• Cash: ~ $10 million / no debt*
• Market Cap: ~ $325 million, FD $385 million
• 52 week high / low: $9.75 – $1.80

* Does not include $38 million payback upon East Toba/Montrose financial close

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Why Green Power in BC

• BC Energy Plan for 2007

– Target reducing BC GHG emissions 33% by 2020 – All electricity generation: zero net emissions by 2016 – $25 million Clean Energy Fund (RoR included) – Provincial self-sufficiency by 2016 (20,000 Gw.h) – 90% of BC Energy from clean renewable resources

• BC imports electricity

– 7,400 GWh out of total electricity consumption of 55,000 GW.h – 1 in 8 homes powered by imported electricity

• Environmental concerns addressed
• National green power programs underway

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BC’s Climate Change Initiative

2007 Speech from the Throne, the BC government announced its intention to reduce greenhouse gas emissions in the province to 33% below current levels by 2020. A cumulative total of 20 megatonnes of CO2.

• BC Energy Plan to become self sufficient on clean energy.
• Negates ~7500 GW.h per annum of nonrenewables
• BC Clean offsets = 8.25 Megatonnes or 41% of target
• Equivalent to removal of 1.6 million cars from the road

Challenge Solution

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No major capacity built in over 20 years

500 1000 1500 2000 2500 3000 3500 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Mega-Watts

Hydropower Thermal IPPs Operating IPPs Contracted

4 1 2 11 2 1 5 2 2 1 2 12 21 14 38

NO MAJOR ADDITIONS SINCE 1984 F2006 CFT # of projects

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BC Hydro Calls for Power

# EPAs Awarded # operating projects Awarded GWh Operating GWh 2006 Open 38 7125 2004 VICFT 1 but terminated 2000 2003 Green 14 1 1535 15 2002 CBG 2 1 223 140 2001 25 20 1032 951 1994 RFP/NI 3 1949 1989 RFP 14 427 1988 RFP 3 1536 Pre-1988 2 84 Total 45 5100

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Clean Power Call 2007

Draft 2007 Clean Power Call Schedule

Draft Terms Fall 2007 Application for filed with BCUC Late 2007 Issuance of Call Spring 2008

• Acquisition target of 5000 GWh/a
• Clean and renewable resources
• Over 10 MW
• Longer in-service dates (until 2016?)
• Power Call also expected in 2009

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IPPs in BC

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Current Operating IPPs in BC

# GWh

total

MW total GWh

average

MW

average

Hydro 35 1600 360 35 10 Biomass 4 750 96 188 24 Biogas 3 60 9 20 3 Gas 2 2640 345 1320 173 TOTAL 45 5100 810 115 18

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Long term export opportunities

• BC Hydro primary existing customer
• Longer term export opportunities
• BC Hydro/Powerex have been exporting power

for years

• Renewable Portfolio Standards driving California

to look at BC renewable energy

• Current transmission constraints to sell into U.S.

Is it a case of the Cure being as dangerous as the Disease?

CAUSE and EFFECT

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Supply / Demand Gap

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Imports vs. Exports

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What is Run of River

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Intake Example

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Powerhouse Example

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Run of River Benefits

• Non-depleting resource
• Small environmental footprint
• No dams or reservoirs
• No change to rivers downstream
• Considered ‘green energy’
• Long life facilities – 50 years +
• Low operating costs – under 20% of revenue
• No fuel price risk
• No technology risk

– 35 established run of river projects in B.C.

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Environmental Impact Comparison

Total Im pact (W eighted)

50 100 150 200 250 300 Run of River Hydro Storage Wind Photovoltaic Biomass Nuclear Natural gas (Combined Cycle) Natural gas (Co-generation) Natural gas (Single Cycle) Gasification (90% CO2 removal) Gasification (Without CO2 removal) Coal Oil Relative Impact

Source: Ontario Report: OPA and SENES

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Plutonic Project Site Benefits

• Large ‘utility grade’ locations
• Remote sites (avoiding NIMBY problems)
• Existing road infrastructure
• Non-salmon bearing streams

– Ease of environmental permitting

• High head projects (vertical drop)
• High rainfall areas (fuel source)
• Glacial run-off (steady flows)

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Topography and Rainfall Areas

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34 Development Locations

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Inflatable Weir Intake Site Head pond Buried Penstock

Flow

East Toba River

East Toba River Intake Site

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East Toba Project –Conceptual Rendition of Powerhouse 4.8 km Buried Penstock Corridor (3m dia.) Powerhouse 565 metres vertical head

Confluence with Toba River

East Toba River Powerhouse Site

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East Toba / Montrose Project

• 196 MW: ~ 745 GWh (75,000 homes)
• Permitting completed Q2 2007
• Construction Underway
• Construction period: 3.5 years
• General Contractor: Peter Kiewit Sons Co.

– Large experienced contractor in hydropower – EPC contract signed Sept. 20, 2007 – Date, cost, performance guarantees

• Proposed COD early 2010 Toba, late 2010

Montrose

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East Toba/Montrose Economics

• Capital Costs:

– $500 million fixed EPC price – $160 million in interest, closing costs, insurance, etc.

• EPA Contract Term: 35 years
• First year Annual revenue: ~ $67 million*

– Escalated at 50% CPI for term of contract

• Annual expenses (O&M and taxes): ~ $13 million
• EBITDA: ~ $54 million
• Equity Cash Flow: ~ $20 million

* Does not include $10/MWh for 10 years EcoEnergy incentive (Potential additional $7.5 million to cash flow for 10 years)

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Plutonic/GE Deal

• GE to invest $100 million in equity
• GE/Manulife to finance $470 million in project debt
• $90 million in other guarantees and letters of credit
• Plutonic retains 40% carried economic interest
• Plutonic will be 51% legal project owner
• Economic interest will revert to 51% Plutonic and

49% GE after 35 years

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• Environmental Permitting

– Formal review of project completed

• First Nations

– Signed Agreement with First Nations

• Off-Take Agreement

– 35 Year Purchase Agreement with BC Hydro

• Financing

– GE equity financing, GE, Manulife debt financing

• Construction

– Peter Kiewit Sons have started construction

Key Fundamentals to Development

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Site Mobilization

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Site Activities

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34

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Plutonic Growth Pipeline

Cormark (Sprott) analysis values unbuilt capacity at $400 - $600 thousand / MW once PPA in place Knight Inlet 150 MW Knight Bute Inlet 1000 MW Bute Toba Valley 120 MW Upper Toba Projects Toba Valley Location 1,700 MW 240 MW 196 MW MW TOTAL Other Toba/Montrose 34 Projects

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We’ve been noticed

Deloitte Technology Green 15 Awards Sept 2007

Presented to 15 ranked companies with PCC placing 7th. In recognition of innovative, important and economically viable intellectual property in the burgeoning field of green technology and are judged on technology solutions that deliver a significant environmental impact and a compelling return for their clients.

Cormark Securities 2007 Global Alternative Energy Index

Plutonic was #1 pick of 35 equities in a Global Alternative Energy Index and 1st among the 15 Canadian Companies.

Criterion Global Clean Energy Fund

A new 2007 Global Diversified Equity Fund and Canada’s first in the space. Plutonic was one of only two BC based companies to qualify.

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Analyst Coverage

Orion Securities Inc. Toll Cross Securities Inc.

We continue to recommend Plutonic Power with a BUY recommendation

Cormark Securities Inc.

One year target increase from $13.50 to $16.00 while our two-year target rises from $20.50 to $24.00.

* From an Orion Securities report on PCC prepared by analysts Steve Harris and Shaifali Joshi. August 07 * From a Toll Cross Securities report on PCC prepared by research analyst Alex Harbin August 2007

Having received its first power purchase agreement last July, Plutonic is rapidly transitioning to a significant power developer. The strong stock performance reflects this progress, but we believe there is more to come.

* From a Cormark Securities report on PCC prepared by research analyst MacMurray Whale June 2007

38 1 Year Peer Comp.

2 4 6 8 10 12 14 16

1 0 /2 /0 6 1 0 /1 6 /0 6 1 0 /3 0 /0 6 1 1 /1 3 /0 6 1 1 /2 7 /0 6 1 2 /1 1 /0 6 1 2 /2 5 /0 6 1 /8 /0 7 1 /2 2 /0 7 2 /5 /0 7 2 /1 9 /0 7 3 /5 /0 7 3 /1 9 /0 7 4 /2 /0 7 4 /1 6 /0 7 4 /3 0 /0 7 5 /1 4 /0 7 5 /2 8 /0 7 6 /1 1 /0 7 6 /2 5 /0 7 7 /9 /0 7 7 /2 3 /0 7 8 /6 /0 7 8 /2 0 /0 7 9 /3 /0 7 9 /1 7 /0 7 1 0 /1 /0 7

PCC A PF KHD XTX IEF GTH MXG

IEF: - 8% XTX: 32% APF: -13% MXG: 56% KHD: 17% PCC: 281% GTH: 162%

Data as of Oct 1, 2007

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Continued Drivers for growth

• Construct and Commission (196 MW)
• Tender and Contract Phase II-III (1000 MW+)

– BC Hydro CFT 2007 – BC Hydro CFT 2009

• Environmental permitting Phase II-III (1000 MW+)
• Agreements with First Nations Phase II-III
• Permit, Finance, Construct, Commission Phase II-III

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Contact: Donald McInnes or Elisha Moreno 1-877-669-4999 donald.mcinnes@plutonic.ca elisha.moreno@plutonic.ca www.plutonic.ca