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Turbine components for Eastern Kings wind farm expansion will start arriving this spring

Turbine components for Eastern Kings wind farm expansion will start arriving this spring

CBC04-04-2025

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The next few months will see some massive parts moving through eastern P.E.I. as the province works to put the finishing touches on a wind farm expansion.
Starting in early May, components for seven new turbines destined for the Rural Municipality of Eastern Kings will begin to arrive by ship.
The first vessel will arrive at port in Georgetown carrying tower sections that weigh 60-80 tonnes each.
Then in early June, a second ship is due that will be carrying the 200-foot turbine blades.
"We've done this before in P.E.I. in terms of managing inland transportation of large turbines, but this will be the biggest [we've] managed to date," said Spencer Long, the wind farm project manager with the P.E.I. Energy Corporation.
"The logistics of moving 200-foot blades around with the specialized trailers… everything is slow moving and carefully organized and handled, but a challenge nonetheless."
Long said the deeper water at Georgetown's wharf means it's more accommodating for the massive ships, rather than using the much closer port in Souris.
Access roads, crane pads and the foundations for the turbines were all finished last year, so the province expects the turbines to be completed by this fall.
Ballooning budget, and some controversies
The expansion has been in the works since 2018 and was originally estimated to cost between $50 million and $60 million.
That budget has since ballooned to $86 million, with Long citing the COVID-19 pandemic, supply chain disruptions and the war in Ukraine.
The construction project also hasn't been without controversy. Officials halted work last July after about a hectare of wetland was discovered during the construction of an access road to the wind farm's development site.
Provincial officials determined that rerouting the road would have damaged other wetlands and meant the loss of more forest. Instead, the province moved ahead with the original route but provided about $151,000 to a wetland compensation fund, something that's allowed under P.E.I.'s wetland policy if the government determines a loss can't be prevented.
Before that, the government was locked in a four-year battle with the Rural Municipality of Eastern Kings over the wind farm's expansion, after the local council initially voted it down.
The protracted negotiations eventually led to the province making regulatory changes under the Renewable Energy Act to give itself "clear authority" to issue permits for solar and wind farms, including within municipal boundaries.
For its project manager, though, the wind farm expansion is a worthwhile step in making P.E.I. a larger player in renewable energy.
Long, who's worked on the project since its beginning, said seeing the components begin to move across Kings County in the coming months will be a proud moment.
"I will probably get emotional to some degree, just from a personal standpoint," he said. "It's important to be resilient and generate our own electricity in a world with so many unknowns that change so quickly."

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As part of the Transaction, the parties agree that the Deemed Cash Settlement Option under the Warrants shall be limited to a maximum of 3,563,228 Warrants and subject to the prior exercise of 9,436,772 Warrants for an equivalent number of Class B voting shares. The other terms of the Warrants remain unchanged. Between the Warrants and Preferred Shares, CEEFC will hold securities exercisable or convertible for an aggregate of 19,371,389 Class B voting shares, representing approximately 32.6% of the outstanding Common Shares after giving effect to such exercise or conversion, provided that at no time will the exercise of warrants or conversion of Preferred Shares result in CEEFC beneficially owning or controlling in excess of 19.9% of the Common Shares. CEEFC intends to hold the Preferred Shares for investment purposes. 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This table should be read in conjunction with the interim financial statements and related management's discussion and analysis for the quarter ended on January 31, 2025. (1) Long-term debt, deferred government grant and lease liabilities Additional Details about the Transaction The Transaction is subject to the finalization of definitive agreements. The Transaction is also subject to the approval of the Toronto Stock Exchange with respect to the issuance of the Preferred Shares. Assuming that the parties are able to finalize definitive agreements and secure the necessary approvals within the contemplated timeline, closing of the Transaction is expected to take place in the third quarter of calendar year 2025. Given that CEEFC holds warrants entitling it to acquire up to 19.9% of the Company's Common Shares, it may constitute a related party for the purposes of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions ("Regulation 61-101"). The Corporation relied on the formal valuation and minority approval exemptions contained in sections 5.5(g) and 5.7(1)(e) of Regulation 61-101 given that the transaction improves the financial position of the Corporation, which was becoming extremely precarious due to the size of its debt. The announced Transaction is the result of discussions initiated by the Corporation over 18 months ago with CEEFC and the review of a range of alternatives with the assistance of a special advisory committee of the Board of Directors made up entirely of independent directors with a view to establishing an optimal capital structure over the long term. The transaction received the unanimous approval of the Board of Directors on the unanimous recommendation of the Special Committee which completed its work with the assistance of external financial and legal advisors. Caution Regarding Forward-Looking Information This news release contains certain forward-looking statements with respect to the Corporation, including those regarding its results, its financial position and its outlook for the future. These forward-looking statements are identified by the use of terms and phrases such as "anticipate" "believe" "could" "estimate" "expect" "intend" "may" "plan" "potential" "predict" "project" "will" "would", the negative of these terms and similar terminology, including references to assumptions. All such statements are made pursuant to applicable Canadian securities legislation. Such statements may involve but are not limited to comments with respect to strategies, expectations, planned operations or future actions. Forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. The forward-looking statements may differ materially from actual results for a number of reasons, including without limitation, economic conditions, changes in demand due to the seasonal nature of the business, extreme weather conditions, climatic or geological disasters, war, political instability, measures taken, planned or contemplated by governments regarding the imposition of tariffs on exports and imports, real or perceived terrorism, outbreaks of epidemics or disease, consumer preferences and consumer habits, consumers' perceptions of the safety of destination services and aviation safety, demographic trends, disruptions to the air traffic control system, the cost of protective, safety and environmental measures, competition, maintain and grow its reputation and brand, the availability of funding in the future, the Corporation's ability to repay its debt from internally generated funds or otherwise, the Corporation's ability to adequately mitigate the Pratt & Whitney GTF engine issues, fluctuations in fuel prices and exchange rates and interest rates, the Corporation's dependence on key suppliers, the availability and fluctuation of costs related to our aircraft, information technology and telecommunications, cybersecurity risks, changes in legislation, regulatory developments or procedures, pending litigation and third-party lawsuits, the ability to reduce operating costs through the Elevation program initiatives, among other things, the Corporation's ability to attract and retain skilled resources, labour relations, collective bargaining and labour disputes, pension issues, maintaining insurance coverage at favourable levels and conditions and at an acceptable cost, and other risks detailed in the Risks and Uncertainties section of the MD&A included in our 2024 Annual Report. The reader is cautioned that the foregoing list of factors is not exhaustive of the factors that may affect any of the Corporation's forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. The forward-looking statements in this news release are based on a number of assumptions relating to economic and market conditions as well as the Corporation's operations, financial position and transactions. Examples of such forward-looking statements include, but are not limited to, statements concerning: The outlook whereby the Corporation will be able to meet its obligations with cash on hand, cash flows from operations drawdowns under existing credit facilities or otherwise. The outlook whereby for fiscal year 2025, the Corporation expects to increase available capacity by 2%, measured in available seat-miles, compared to 2024, with potential adjustments depending on the evolving situation with Pratt & Whitney GTF2 engine issues. The outlook whereby the initiatives implemented to date are expected to generate an annualized adjusted EBITDA run-rate of $37 million. The program remains on track to reach $100 million by mid-2026. In making these statements, the Corporation assumes, among other things, that the standards and measures for the health and safety of personnel and travellers imposed by government and airport authorities will be consistent with those currently in effect, that workers will continue to be available to the Corporation, its suppliers and the companies providing passenger services at the airports, that credit facilities and other terms of credit extended by its business partners will continue to be made available as in the past, that management will continue to manage changes in cash flows to fund working capital requirements for the full fiscal year and that fuel prices, exchange rates, selling prices and hotel and other costs remain stable, the Corporation will be able to adequately mitigate the Pratt & Whitney GTF engine issues and that the initiatives identified to improve adjusted operating income (adjusted EBITDA) can be implemented as planned, and will result in cost reductions and revenue increases of the order anticipated by mid-2026. If these assumptions prove incorrect, actual results and developments may differ materially from those contemplated by the forward-looking statements contained in this press release. The Corporation considers that the assumptions on which these forward-looking statements are based are reasonable. These statements reflect current expectations regarding future events and operating performance, speak only as of the date this news release is issued, and represent the Corporation's expectations as of that date. For additional information with respect to these and other factors, see the MD&A for the quarter ended January 31, 2025 filed with the Canadian securities commissions and available on SEDAR at The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable securities legislation. About Transat AT Inc. Founded in Montreal 37 years ago, Transat has achieved worldwide recognition as a provider of leisure travel particularly as an airline under the Air Transat brand. Voted World's Best Leisure Airline by passengers at the 2024 Skytrax World Airline Awards, it flies to international destinations. It renews its fleet with the most energy-efficient aircraft in its category, which is essential to ensure the energy efficiency of its operations. Based in Montreal, Transat has 5,000 employees with a common purpose to bring people closer together. (TSX: TRZ) About CEEFC CEEFC is a federal Crown corporation, incorporated in May 2020 under the Canada Business Corporations Act and is wholly owned subsidiary of Canada Development Investment Corporation. CEEFC currently manages the Large Employer Emergency Financing Facility (LEEFF) program and the Large Enterprise Tariff Loan (LETL) facility. An early warning report will be filed by CEEFC in accordance with applicable securities laws and will be available on SEDAR+ at or may be obtained directly from CEEFC upon request from Mr. Bruno Lemay at 416-966-0185. Media: Andréan Gagné Senior Director, Communications, Public Affairs and Corporate Responsibility [email protected] 514 987-1616, ext. 104071 Financial analysts: Juliette Gauthier Senior Director, Investor Relations and Corporate Finance [email protected] 514 987-1616, ext. 104019 SOURCE Transat A.T. Inc.

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