EPCOR Power L.P. announces a three-year extension and amendments to the energy services agreement for its Kenilworth plant

    EDMONTON, July 21 /CNW/ - EPCOR Power L.P. (TSX: EP.UN) (the
Partnership), announced today that it has amended and extended the power
purchase arrangement and steam purchase agreement (energy services agreement)
with Schering Corporation (Schering), a subsidiary of Schering-Plough
Corporation, through to July 2012 for its Kenilworth plant. The Kenilworth
facility currently sells electrical energy and steam to Schering under the
energy services agreement that was due to expire in June 2009. The amendments
which include revised pricing are effective July 2008.
    "We are pleased to have reached an agreement with Schering to extend the
term of the energy services agreement for an additional three years on our
Kenilworth facility," said Brian Vaasjo, President of EPCOR Power Services
Limited, the General Partner of the Partnership. "Execution of the contract
extension is part of the Partnership's plan for providing unitholders with
long-term stability and sustainable cash distributions. Under the terms of the
revised agreement, future operating margins are expected to be similar to
current levels and include amendments that eliminate early termination
provisions and include the sharing of potential cost saving benefits for both
    The Kenilworth facility, acquired by the Partnership in 2006, is a
natural gas-fired combined heat and power plant located in the state of New

    About EPCOR Power L.P.

    Established in 1997, EPCOR Power L.P. is a limited partnership organized
under the laws of the Province of Ontario. The Partnership's portfolio
consists of 19 wholly-owned power generation assets located in Canada and the
United States, a 50 per cent interest in a power generation asset in
Washington State, and a 15.4 per cent interest in Primary Energy Recycling
Holdings LLC (PERH). The Partnership's assets have a total net generating
capacity of 1,287 megawatts and more than three million pounds per hour of
thermal energy. PERH wholly owns four recycled energy assets in the United
States with an aggregate generation capacity of 283 megawatts and nearly
two million pounds per hour of thermal energy, and has a 50 per cent interest
in a pulverized coal facility. EPCOR USA Ventures LLC, formerly Primary Energy
Ventures LLC, a wholly-owned subsidiary of the Partnership, manages and
operates these facilities for PERH. For more information on the Partnership,
please visit: www.epcorpowerlp.ca.

    Forward-looking Information

    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, assumptions and
uncertainties, which could cause the Partnership's actual results and
experience to be materially different than the anticipated results. Such
risks, assumptions and uncertainties include, but are not limited to, the
ability of the Partnership to successfully integrate and realize the financial
benefits of acquisitions, the ability of the Partnership to implement its
strategic initiatives and whether such strategic initiatives will yield the
expected benefits, the availability and price of energy commodities, plant
availability, waste heat availability and water flows, regulatory and
government decisions, the renewal and terms of power purchase contracts,
competitive factors in the power industry, the current and future economic
conditions in North America and the performance of 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, the Partnership 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: Media inquiries: Tim LeRiche, (780) 969-8238;
Unitholder and analyst inquiries: Randy Mah, (780) 412-4297; (866) 896-4636

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