Business
Capital Power Income L.P. provides 2010 outlook and business updates at Investor Day event
Capital Power Income L.P. provides 2010 outlook and business updates at Investor Day event
About this update from Capital Power Corporation
[{"type":"text","content":"\n\n\n\nDec. 3, 2009 (Canada NewsWire Group) -- EDMONTON, Dec. 3 /CNW/ -- Capital Power Income L.P. (TSX: CPA.UN) (the Partnership) will be hosting its second annual Investor Day event in Toronto at the TMX Broadcast Centre starting at 2:00 pm Eastern Time today, where its executive leadership team will provide investors with a comprehensive review of its operations, strategy, and outlook. The event can be accessed through a webcast that will be available on the Partnership's website.\"The focus in 2010 will be on improving cash flows from existing operations and commercial arrangements,\" said Stuart Lee, President and CEO of the General Partner of the Partnership. \"We have been successful in managing supply shortages at our two biomass facilities in a challenging forestry industry environment through various commercial arrangements. We are also close to finalizing amendments to the power purchase arrangement for the Tunis facility in Ontario, which is expected to mitigate the fuel supply risk at the plant.\"The Partnership also announced that discussions with the Ontario Electricity Financial Corporation (OEFC) have resulted in a term sheet for amendments to the Tunis power purchase arrangement (PPA). The Partnership expects to sign an amended PPA for Tunis by the end of December 2009. The new PPA is expected to allow the Partnership to fix gas prices at existing rates through to 2014, while OEFC will have the right to curtail production for 65 per cent of the summer off-peak hours. The Partnership expects enhanced annual upside from the arrangement versus current forward gas pricesOutlook for 2010Cash flow from operations in 2010 is expected to be lower than 2009 primarily due to the following items:lower waste heat operating margins from Ontario natural gas facilities, resulting from lower waste heat availabilityincreased fuel costs due to increased transportation tolls on TransCanada's mainline system for Ontario natural gas facilitieslower California Oregon Border power pricing on excess energy at Williams Lake facilityhigher financing costs from the issuance of preferred shares in November 2009, where net proceeds were used to fund growth initiatives and to strengthen the balance sheetThe Partnership expects to reduce utilization on its credit facilities by approximately $25 to $50 million by the end of 2010.The Partners...