CALGARY AND EDMONTON, AB, Dec. 6, 2012 /CNW/ - ENMAX Corporation and
Capital Power are pleased to announce today that Capital Power has
signed an agreement to purchase a fifty percent interest in the 800MW
natural-gas-fueled Shepard Energy Centre, located on the eastern limits
of the City of Calgary. The parties will build, own, and operate the
Shepard Energy Centre under a joint venture agreement.
The Shepard Energy Centre project is a significant advancement in moving
Alberta toward lower-emitting, highly reliable, more efficient natural
gas-fueled electricity generation, made possible because of the
abundance of clean-burning natural gas. The Shepard Energy Centre will
produce less than half the carbon dioxide per MWh than a conventional
coal plant. It will also emit less other emissions such as carbon
monoxide, sulphur dioxide, and nitrogen dioxide.
Construction commenced on the Shepard Energy Centre in July 2011. The
project is on budget and on schedule for completion in the first
quarter of 2015.
The Shepard Energy Centre will provide a reliable, competitively priced
supply of power for Alberta consumers. It will be the largest
natural-gas-fueled power facility in western Canada. The budget for the
project is approximately $1.4 billion. Capital Power is investing
approximately $860 million into the project once interest during
construction is included.
"ENMAX is proud of the excellent progress we've made in constructing the
Shepard Energy Centre on schedule and on budget," said ENMAX President
and CEO, Gianna Manes. "We are pleased to welcome Capital Power to
the project, and look forward to working together on this important
investment in Alberta. By holding a joint venture position in one of
the largest investments in Alberta's electricity future, ENMAX will
remain well positioned for strategic growth and securing a diversified
portfolio of future supply for our customers."
"We are pleased to work with ENMAX on the Shepard facility," said
Capital Power President and CEO, Brian Vaasjo. "This project provides
Capital Power with an exceptional opportunity for a partially
contracted investment in Canada's fastest-growing market. It is an
excellent fit with our business strategy and will strengthen our
position in Alberta, where we have extensive experience and a
well-established portfolio of assets."
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American power
producer headquartered in Edmonton, Alberta. The Company develops,
acquires, operates and optimizes power generation from a variety of
energy sources. Capital Power owns more than 3,600 megawatts of power
generation capacity at 16 facilities across North America. An
additional 595 megawatts of owned generation (including the Shepard
Energy Centre) is under construction or in advanced development.
About ENMAX Corporation
ENMAX Corporation, through subsidiaries and predecessors, has provided
Albertans with safe and reliable electricity for more than 100 years.
ENMAX Corporation provides electricity, natural gas and value-added
services to more than 660,000 residential, commercial and industrial
metered customer locations in Alberta. ENMAX Energy Corporation, a
subsidiary of ENMAX Corporation, is Alberta's leading competitive
electricity retailer. Through subsidiaries, ENMAX Energy is one of
Alberta's largest investors in renewable energy and was the first
Canadian electricity retailer to offer customers the option to support
wind generated energy. As well, ENMAX Corporation, through its
subsidiary ENMAX Envision Inc., provides fibre optic networks for high
speed data and internet communications. Visit our website at enmax.com.
Certain information in this news release is forward-looking within the
meaning of Canadian securities laws as it relates to anticipated
financial and operating performance, events or strategies. The
forward-looking information or statements are provided to inform
shareholders and potential investors about management's assessment of
Capital Power's future plans and operations. This information may not
be appropriate for other purposes. The forward-looking information in
this news release is generally identified by words such as will,
anticipate, believe, plan, intend, target, and expect or similar words
that suggest future outcomes. Material forward-looking information
includes, among other things, information relating to: (i) expectations
regarding future growth and emerging opportunities in the Alberta
market including the focus on certain technologies; and (ii)
expectations regarding the timing of, funding of, and costs for
existing and planned development projects and acquisitions.
All forward-looking information or statements reflect Capital Power's
assumptions and analyses made by the Company in light of its experience
and perception of historical trends, current conditions and expected
future developments, and other factors it believes are appropriate.
Readers are cautioned not to place undue reliance on this
forward-looking information. Capital Power undertakes no obligation to
update or revise any forward-looking information except as required by
law. For additional information on the assumptions made, and the risks
and uncertainties which could cause actual results to differ from the
anticipated results, refer to Capital Power's Management's Discussion
and Analysis dated and filed March 13, 2012 under Capital Power's
profile on SEDAR at http://www.sedar.com/ and other reports filed by Capital Power with Canadian securities
Shepard Energy Centre Backgrounder
What is the Shepard Energy Centre?
800-MW natural gas-fired generation facility located in southeast
Two 240-MW natural gas-fired turbines and one 320-MW steam turbine, all
of which are manufactured by Mitsubishi.
First in Canada to use state-of-the-art high efficiency G-class gas
Will be the lowest-cost, non-cogeneration, natural-gas generator in
Located on an excellent site, close to a major load centre, the 240-kV
transmission line network, and TransCanada Pipeline's high-pressure
natural gas pipeline
What is the arrangement between Capital Power and ENMAX?
Capital Power has agreed to purchase a fifty percent interest in the
Shepard Energy Centre and to enter into a joint-venture agreement with
ENMAX to construct and operate the facility.
The project budget is approximately $1.4 billion. Capital Power's
investment is approximately $860 million once interest during
construction is included.
The parties will be subject to various commercial agreements, including
a 20-year tolling agreement. Under the tolling agreement, ENMAX will
pay Capital Power a fixed capacity charge for 75 per cent of Capital
Power's share of the output from the Shepard facility for the 2015 to
2017 period, and decreasing to 50 per cent of Capital Power's output
for 2018 to 2035. The tolling agreement has operating and maintenance
cost flow-through provisions to ENMAX. Commercial arrangements also
include contracts for differences for 100 MW in 2013, 300 MW in 2014,
and 100 MW in 2015.
Who will operate the facility?
ENMAX is responsible for completion of construction.
ENMAX will operate the facility.
Capital Power will administer the dispatch of the electrical output.
Each party has dispatch rights to their own blocks of capacity.
SOURCE: Capital Power Corporation
For further information:
Capital Power Corporation: