Position
For the quarter ended June 30, 2002, its first full quarter of operations, Boralex Power Income Fund (the ”Fund”) generated revenue of $15.0 million and net income of $4.3 million or $0.106 per unit. The results for the quarter include a contribution of $0.5 million from Boralex Inc., a 34% unitholder and its manager, to cover lost revenue and additional operating costs during the start up period at the Senneterre power station in April and May. From the beginning of June, this power station was operating at its design capacity. All of the other power stations operated according to expectations and their financial results are in line with the forecast provided in the Fund’s prospectus of February 20, 2002. During the quarter, the Fund used $3.4 million of its reserve to cover distributions to its unitholders and major capital maintenance expenditures at its Kingsey Falls cogeneration plant which underwent a major overhaul of its turbine generator in June.

For the period from February 20, 2002, to June 30, 2002, total revenue of the Fund was $24.5 million and its net income totaled $8.8 million or $0.218 per unit.

Operating Results
Revenue
Hydroelectric Facilities | Revenue for the quarter and the year to date period ended June 30, 2002, totalled $3.7 million and $5.2 million respectively and were essentially in line with expectations for this sector of operations.

Wood Residue Facilities | The revenue for this sector during the quarter and the year to date period ended June 30, 2002, include a contribution of $0.5 million and $1.6 million respectively from Boralex, its 34% unitholder and manager to cover the cost of operating inefficiencies during these periods at the Senneterre power station. As at June, 2002, this power station was operating at its design capacity. The Dolbeau facility operated normally during the quarter.

Gas Cogeneration Facility | The revenue from the gas cogeneration power station at Kingsey Falls for the quarter and the year to date period ended June 30, 2002, was $4.1 million and $7.1 million respectively, which in both cases is slightly in excess of expectations due to a higher selling price for the steam which is related to the market price for crude oil.

Earnings Before Interests, Taxes,
Depreciation and Amortization (EBITDA)
Hydroelectric Facilities | EBITDA for the quarter and the year to date period ended June 30, 2002, totalled $3.2 million and $4.4 million respectively, which was somewhat higher than expectations due to improved hydrology.

Wood Residue Facilities | EBITDA for the quarter and the year to date period ended June 30, 2002, of $3.8 million and $7.4 million include a contribution from Boralex Inc. of $0.5 million for the quarter and $1.6 million for the year to date to cover the cost of operating inefficiencies at the Senneterre power station during these periods.

Gas Cogeneration Facility | EBITDA for this facility for the quarter and the year to date period ended June 30, 2002, totalled $1.5 million and $3.1 million respectively, which was higher than expectations due to the higher selling price for steam.

Financing Costs and Amortization
The financial expenses for the quarter and the year to date period ended June 30, 2002, were $0.3 million and $0.4 million respectively, include interest income from the investment of the reserve. This expense is lower than expectations because of lower interest rates. The amortization of assets totalled $2.7 million for the quarter and $3.8 million for the year to date period ended June 30, 2002, and is in line with expectations.

Cash Flow
For the quarter ended Juyne 30, 2002, the Fund generated cash from operations of $6.0 million, incurred $1.6 million of capital maintenance expenditures and made $8.9 million in distributions to its unitholders. It used $3.4 million of its reserve and $0.2 million of its bank line of credit to finance these operations.

Financial Position
Other than the use of its reserve to fund partially its distributions to its unitholders, there have been no other major changes in the Fund’s financial position since March 31, 2002.

Outlook
The Fund remains confident that it will continue to generate stable earnings and cash flows. All of the power stations’ revenues are covered by long term contracts and their fuel requirements are also contracted for on a long term basis. This should generate stable distributions to unitholders for the rest of the year.

Boralex Power Income Fund is an unincorporated open-ended trust that indirectly owns and operates eight power generating stations located in the province of QuÈbec producing energy from different sources including wood-residue or natural gas-fired thermal and cogenerating facilities as well as hydroelectric power stations. In total, these power stations have an installed capacity of 131 MW. The Fundís units are listed for trading on The Toronto Stock Exchange under the symbol BPT.UN.