EDMONTON, Dec. 5, 2013 /CNW/ - At its annual Investor Day conference in Toronto today, Capital Power Corporation (TSX: CPX) ("Capital Power" or "the Company") announced a number of positive corporate developments. The Company also provided financial and other targets for 2014.
Development agreement with ENMAX Corporation (ENMAX) for Genesee 4 & 5 Capital Power and ENMAX have executed a Letter of Intent to pursue joint venture agreements to develop, construct, own and operate the Genesee 4 & 5 facility. Agreements are expected to be completed in the first quarter of 2014.
The proposed Genesee 4 & 5 will be a natural gas-fired combined cycle generation facility that will be built on a site near Capital Power's Genesee facility west of Edmonton, Alberta. Genesee 4 & 5 will be utilizing the latest state-of-the-art high efficiency gas turbine technology and will have a generation capacity of up to 1,050 megawatts.
Capital Power will lead the construction of the project and will be the operator of the facility. Construction of the project is expected to be completed between 2018 and 2020 when additional generation is required to meet growing demand and to replace generation from the retirement of coal-fired units in the province.
"I'm excited about the prospect to have ENMAX as our partner in the Genesee 4 & 5 facility in Alberta," said Brian Vaasjo, President and CEO of Capital Power.
"This agreement builds on a similar partnership that we have on the Shepard Energy Centre and reinforces our leadership position in the attractive Alberta market."
Port Dover & Nanticoke wind facility begins commercial operations
On November 7, 2013, the Port Dover & Nanticoke wind project in Ontario began commercial operations. The 105-megawatt wind facility was completed on time and under its $340 million budget, with final construction costs expected to be approximately $315 million. The Port Dover & Nanticoke wind project was awarded a 20-year power purchase agreement in April 2010 with the Ontario Power Authority (OPA), as part of the OPA's Feed-in-Tariff (FIT) program. The contracted price for power at commercial operations is $144 per megawatt hour and thereafter, 20 per cent of the contract price will escalate annually at
inflation throughout the 20-year term.
"We are excited to add another successful wind construction project to our track record," said Mr. Vaasjo. "Completing the project under budget is a testament to our strong development and construction teams, whose expertise represents a real competitive advantage for Capital Power."
Shepard Energy Centre project on schedule and below budget Capital Power, along with its joint venture partner ENMAX, also announced that
construction of the 800 megawatt Shepard Energy Centre is on schedule and below budget. Shepard is a natural gas combined cycle facility located on the southeast edge of Calgary, Alberta, with commercial operations targeted for early 2015. The construction project is expected to be completed below budget with Capital Power's portion reduced to approximately $821 million from its original $860 million budget.
"The Shepard Energy Centre represents a significant part of Capital Power's expansion plans in Alberta including a unique opportunity for a contracted investment in the province," added Mr. Vaasjo. "And, with the reduction in capital costs, our long-term returns are expected to exceed our original expectations."
SOURCE Capital Power Corporation