Business
Capital Power completes final payment for its 50% interest in the Shepard Energy Centre
EDMONTON , Sept. 30, 2013 /CNW/ - Capital Power Corporation (TSX: CPX) ("Capital Power" ...
About this update from Capital Power Corporation
[{"type":"text","content":"\n\n\nEDMONTON, Sept. 30, 2013 /CNW/ - Capital Power Corporation (TSX: CPX)\n (\"Capital Power\" or \"the Company\") announced today that it has\n completed the second tranche payment of approximately $325 million to\n ENMAX Corporation (\"ENMAX\") for the remaining 25% ownership interest in\n the Shepard Energy Centre (\"Shepard\") and now holds a 50% ownership\n interest in Shepard. Capital Power initially paid $237 million for the\n first tranche payment in February 2013 when it acquired a 25% interest\n in the Shepard facility. \n\n\n\"By using our existing credit facilities to finance the second tranche\n payment ahead of its due date in the first quarter of 2014, we will\n realize interest cost savings on the Shepard project,\" said Stuart Lee,\n Senior Vice-President and Chief Financial Officer for Capital Power.\n \"The interest rate on our credit facilities is lower than the interest\n rate stipulated in the contract during the construction phase.\"\n\n\n\"Last month, we announced an agreement with Emera Inc. on the sale of\n our New England assets for US$541 million. We plan on repaying the\n amount drawn on the credit facility from the proceeds of the asset sale\n transaction, which is expected to close in the fourth quarter of 2013,\"\n said Mr. Lee.\n\n\nCapital Power and ENMAX have a joint venture agreement to build, own and\n operate the 800 megawatt Shepard facility, which is currently under\n construction and expected to begin commercial operations in early\n 2015.  Shepard will be a natural gas combined cycle facility located on\n the southeast edge of Calgary, Alberta.\n\n\nForward-looking Information\nForward-looking information or statements included in this press release\n are provided to inform the Company's shareholders and potential\n investors about management's assessment of Capital Power's future plans\n and operations. This information may not be appropriate for other\n purposes. The forward-looking information in this press release is\n generally identified by words such as will, anticipate, believe, plan,\n intend, target, and expect or similar words that suggest future\n outcomes. Material forward-looking information in this press release\n includes information with respect to: (i) expectations regarding\n realizing interest cost savings on the Shepard project; (ii)\n expectations regard...