Capital Power Income L.P. provides 2010 outlook and business updates at
Investor Day event
"The focus in 2010 will be on improving cash flows from existing operations and commercial arrangements," said
The Partnership also announced that discussions with the Ontario Electricity Financial Corporation (OEFC) have resulted in a term sheet for amendments to the
Outlook for 2010
Cash flow from operations in 2010 is expected to be lower than 2009 primarily due to the following items:
lower waste heat operating margins from Ontario natural gas facilities, resulting from lower waste heat availability
increased fuel costs due to increased transportation tolls on TransCanada's mainline system for Ontario natural gas facilities
lower California Oregon Border power pricing on excess energy at
higher financing costs from the issuance of preferred shares in
The Partnership expects to reduce utilization on its credit facilities by approximately
The Partnership has revised its expectation with respect to its future cash tax status after the specified investment flow-through (SIFT) tax becomes effective in 2011. Due to tax attributes consisting primarily of tax losses and undepreciated capital cost pools available to the Partnership to deduct against future taxable income, the Partnership does not expect to make any material cash income tax payments until 2015 or 2016 in both
In part due to the Partnership's favourable tax position in conjunction with distribution and capital structuring actions taken in 2009, the Partnership believes it is well positioned to provide unitholders with distribution stability at the current
Webcast
The general public are invited to listen to the live audio webcast of the investor day event. The webcast and presentation slides for the investor day event will be accessible on the company's website at www.capitalpowerincome.ca
About Capital Power Income L.P.
Established in 1997, Capital Power Income L.P. is a limited partnership organized under the laws of the Province of Ontario. The Partnership's portfolio includes 19 wholly-owned power generation assets located in
Forward-looking Information
Certain information in this press release is forward-looking and related to anticipated financial performance, events and strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target" and "expect" or similar words suggest future outcomes. By their nature, such statements are subject to significant risks, assumptions and uncertainties, which could cause the Partnership's actual results and experience to be materially different than the anticipated results.
In particular, forward-looking information and statements include: (i) the sustainability of distributions, including relative to a long-term payout ratio target of 75% of cash provided by operating activities less maintenance capital, (ii) expectations that amendments to the
These statements are based on certain assumptions and analysis made by the Partnership in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements include: (i) the Partnership's operations, financial position and available credit facilities, (ii) the Partnership's assessment of commodity, currency and power markets, (iii) the markets and regulatory environment in which the Partnership's facilities operate, (iv) the state of capital markets, (v) management's analysis of applicable tax legislation, (vi) the assumption that the currently applicable and proposed tax laws and emissions regulations will not change and will be implemented, (vii) the assumption that counterparties to fuel supply and power purchase agreements will continue to perform their obligations under the agreements, (viii) the level of plant availability and dispatch, (ix) the performance of contractors and suppliers, * the renewal or replacement of PPAs and terms of PPAs, (xi) the ability of the Partnership to successfully integrate and realize the benefits of its acquisitions, (xii) the ability of the Partnership to implement its strategic initiatives and whether such initiatives will yield the expected benefits, (xiii) expected water flows, (xiv) that current third party expectations regarding throughput on the TransCanada Canadian Mainline will continue, (xv) management's analysis and due diligence of the Equistar Morris facility including the related purchase and supply agreements and Equistar reorganization under Chapter 11 of the U.S. Bankruptcy Code, and (xvi) the ability of the Partnership to adequately source alternative sources of supply of wood waste.
Whether actual results, performance or achievements will conform to the Partnership's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results to differ materially from the Partnership's expectations. Such risks and uncertainties include, but are not limited to risks relating to (i) the operation of the Partnership's facilities, (ii) plant availability and performance, (iii) the availability and price of energy commodities including natural gas and wood waste, (iv) the performance of counterparties in meeting their obligations under PPAs, (v) competitive factors in the power industry, (vi) economic conditions, including in the markets served by the Partnership's facilities, (vii) developments within the North American capital markets, (viii) the availability and cost of permanent long term financing in respect of acquisitions and investments, (ix) unanticipated maintenance and other expenditures, * the Partnership's ability to successfully realize the benefits of acquisitions and investments, (xi) changes in regulatory and government decisions including changes to emission regulations, (xii) waste heat availability and water flows, (xiii) changes in existing and proposed tax and other legislation in
Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. Except as required by law, the Partnership disclaims any intention and assumes no obligation to update any forward-looking statement.
For further information: For further information: Media Inquiries: Mike Long, (780) 392-5207; Investor Inquiries: Randy Mah, (780) 392-5305; Toll Free (866) 896-4636
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