Business
Capital Power Announces Agreement to Sell New England Assets and Refocusing of Merchant Power Business on Alberta
- Capital Power to sell New England merchant generation facilities to Emera Inc. for US$5...
About this update from Capital Power Corporation
[{"type":"text","content":"\n\n\n- Capital Power to sell New England merchant generation facilities to\n Emera Inc. for US$541 million- Re-focusing boosts immediate and long-term value for shareholders,\n reduces merchant risk and lowers costs\n\n\nEDMONTON, Aug. 28, 2013 /CNW/ - Capital Power Corporation (TSX: CPX) and\n Capital Power L.P., the legal entity that indirectly holds\n substantially all of Capital Power Corporation's assets (together,\n Capital Power or the Company), today announced that Emera Inc. (Emera)\n (TSX: EMA) has entered into an agreement to acquire Capital Power's\n three New England combined cycle, natural gas-fired power generation\n facilities for US$541 million.\n\n\nThe facilities are Bridgeport Energy, a 520-megawatt power station in\n Bridgeport, CT, that has been operational since 1999; Tiverton Power, a\n 265-megawatt power station in Tiverton, RI, that has been operational\n since 2000; and Rumford Power, a 265-megawatt power station in Rumford,\n ME, that has been operational since 2000. The transaction includes\n certain emissions credits.\n\n\n\"The transaction is consistent with our focus on enhancing Capital\n Power's returns for shareholders while rebalancing risk in our\n portfolio,\" said Capital Power President & CEO Brian Vaasjo. \"The sale\n proceeds for the New England assets will be redeployed to reduce our\n merchant risk profile and provide more predictable earnings and cash\n flow.\"\n\n\nCapital Power's merchant power activities will now be focused on\n Alberta. The company will continue to pursue growth in contracted power\n generation across North America.\n\n\n\"Focusing Capital Power's business is the best way to create immediate\n and long-term value for shareholders and balance the Company's merchant\n and contracted portfolio,\" said Capital Power President & CEO Brian\n Vaasjo. \"While we will continue to pursue contracted power generation\n opportunities throughout North America, growth in our merchant power\n business and our trading activities will now be focused on North\n America's strongest power market, Alberta.\"\n\n\n\"Our re-focusing reflects the fact that North American power markets\n have evolved over the past several years.\" Mr. Vaasjo continued.\n \"Capital Power can now pursue higher value investment opportunities in\n the fast-growing Alberta market. For example, we expec...