TORONTO and GODERICH, ON, Oct. 15 /CNW/ - EPCOR Utilities Inc. (EPCOR)
announced today that the company and the Ontario Power Authority (OPA) have
mutually agreed to terminate the renewable energy supply agreement for EPCOR's
160 megawatt Kingsbridge II wind project in the Township of
The Kingsbridge II project was selected through a Request for Proposals
(RFP) process in November 2005, and a Power Purchase Agreement (PPA) for
output from the project was signed on November 21, 2005. The PPA required the
project to be in service by October 31, 2008.
EPCOR experienced delays obtaining provincial and municipal approvals for
the project, and uncertainty respecting regulations concerning the project's
layout, design, and testing. As a result, EPCOR would be unable to meet the
contracts conditions as a result of circumstances beyond its control. EPCOR
has decided in cooperation with the OPA that it will not proceed with this
project as originally planned. EPCOR will not incur any asset write-downs
associated with this decision.
"This was a difficult decision," said Paul McMillan, Senior Vice
President, EPCOR Ontario. "We've worked closely with the local community and
landowners in Ashfield-Colborne-Wawanosh, and we want to thank those
individuals for their support."
EPCOR is considering the future of the Kingsbridge II project, and will
continue with its Kingsbridge I operations.
EPCOR Utilities Inc. builds, owns and operates power plants, electrical
transmission and distribution networks, water and wastewater treatment
facilities and infrastructure in Canada and the United States. EPCOR,
headquartered in Edmonton, Alberta, has been named one of Canada's Top 100
Employers for nine consecutive years and was selected as one of Canada's 10
Most Earth-Friendly Employers. EPCOR's web-site is www.epcor.ca.
Certain information in this news 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 and uncertainties,
which could cause EPCOR's actual results and experience to be materially
different than the anticipated results. Such risks and uncertainties include,
but are not limited to, operating performance, commodity prices and volumes,
load settlement, regulatory and government decisions including changes to
environmental and tax legislation, weather and economic conditions,
competitive pressures, construction risks, availability and cost of financing,
foreign exchange risks, availability of labour and management resources and
the performance of partners, contractors and suppliers.
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. Except as required by law, EPCOR disclaims any intention and
assumes no obligation to update any forward-looking statement even if new
information becomes available, as a result of future events or for any other
For further information:
For further information: Neil Levine, EPCOR Ontario, (416) 773-7410