Powerhouse Energy Corp. Announces US $31 Million Hydroelectric Project.Business Editors VANCOUVER, B.C--(BUSINESS WIRE)--May 30, 2000 -Company to Joint Venture with Selmeca LTDA- Powerhouse Energy Corp. (CDNX CDNX See Canadian Venture Exchange (CDNX). :PHE.) today announced that the Company signed an agreement to joint venture with Selmeca LTDA LTDA Limitada (Portuguese; similar to Limited Liability Company) LTDA Limitada (Spanish) LTDA London Taxi Drivers Association LTDA Lower Tier Defended Area LTDA Low Temperature Die Attach Servicios Electromecanicos of Guatemala on a US $31-million hydroelectric power hydroelectric power: see power, electric; water power. hydroelectric power Electricity produced from generators driven by water turbines that convert the energy in falling or fast-flowing water to mechanical energy. project, "The Turingia Project." The location is approximately 50 miles west of Guatemala City Guatemala City City (pop., 1994: city, 823,301; 1999 est.: metro area, 3,119,000), capital of Guatemala. The largest city in Central America, it lies in the central highlands at an elevation of about 4,900 ft (1,490 m). and 5 miles from the main transmission line. Under the terms of joint venture, Powerhouse will retain 75% ownership and Selmeca 25%. Guatemala was chosen for this significant investment for the following reasons: * All necessary permits are in place in order to expedite construction. * A power purchase agreement with the Guatemalan government has been finalized. * Government deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. in the hydroelectric power industry is well-advanced in Guatemala. * The price of electricity in Guatemala is significantly higher than in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. - about 2.5 times higher than in the Pacific Northwest. * Green Power (environmentally friendly) and Greenhouse Gas Credits are available giving an even higher price for electricity than the current market price * Export of electricity from Guatemala to other Central American countries has been temporarily cut off due to shortage.. Prices have recently increased due to these shortages. * Electric transmission lines to serve all of Central America and Mexico are under construction. The proposed installed capacity of the Turingia project will be 21 MW, which would cost approximately US$31-million to build. The project is expected to generate 89.7 gigawatt gig·a·watt n. Abbr. GW One billion (109) watts. hours per year with estimated annual revenues of US$7-million. Powerhouse is currently conducting due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. which will be completed July 1, 2000. The joint venture agreement will give 75 per cent ownership to Powerhouse Energy Corp. and 25 per cent ownership to Selmeca the present land owner. With the addition of the Turingia project to its roster, and with the commitment to strategic pursuit of an internal rate of return and investment target of 25 percent, Powerhouse believes it has strengthened its prospects for both the short and long-term horizons. The above is subject to regulatory approval. For further details on this exciting project contact: The information contained in this press release, includes "forward-looking statements", such "forward-looking statements" set forth many risks and uncertainties related to the Company's business and such statements, including risks and uncertainties related to that are unpredictable and outside the influence and/or control of the Company. The Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) has not reviewed and does not accept responsibility for the accuracy of this release. On behalf of the Board of Directors "William L. Ling" William L. Ling, President |
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