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Capital Power's Port Dover & Nanticoke Wind Project awarded contract from the Ontario Power Authority
Capital Power's Port Dover & Nanticoke Wind Project awarded contract from the Ontario Power Autho...
About this update from Capital Power Corporation
[{"type":"text","content":"\n\n\n\nEDMONTON, Apr. 8, 2010 (Canada NewsWire Group) -- /CNW/ -- The Ontario Power Authority (OPA) announced today that Capital Power Corporation (\"Capital Power\" or \"the Company\") (TSX: CPX) has been offered a contract through the Ontario Power Authority's (\"OPA\") Feed-in-Tariff (FIT) program for the proposed Port Dover & Nanticoke Wind Project (\"PDNW\" or \"the project\").The 105-megawatt (MW) project has an expected cost of up to $340 million, and it is anticipated that it would be developed by an indirect wholly-owned subsidiary of Capital Power. The project is expected to enter commercial operation in the fourth quarter of 2012.\"The Port Dover & Nanticoke Wind Project continues our successful execution of Capital Power's growth strategy,\" said Capital Power President and CEO, Brian Vaasjo. \"Combined with the recently announced contract for the Quality Wind Project in British Columbia, Capital Power will be investing nearly $800 million into wind projects with contracted cash flows of at least 20 years in duration. We expect our investment in PDNW will be accretive to earnings per share upon operation and over the life of the project.\"Under the terms of the FIT program, the contracted price for power at commercial operation will be $135 per megawatt hour (MWh) escalated by inflation (CPI) between the contract signing date and commercial operation date. Thereafter, 20 per cent of the contract price will escalate annually at inflation (CPI) throughout the 20-year term.Management of Capital Power expects that PDNW will be funded in conjunction with the Company's overall financing plan, and be consistent with its commitment to maintaining its investment-grade credit ratings. Capital Power currently has $1.2 billion in credit facilities with approximately $1 billion available for use.Construction of the project will be subject to regulatory approvals, including completion of Ontario's Renewable Energy Approval (REA) process. Capital Power began the REA approval process, following the acquisition of the project from Tribute Resources Inc. in November 2009.\"This area has a strong, stable wind resource supported by 3 years of recorded site wind data as well as access to existing transmission capacity,\" said Anthony Zlahtic, Capital Power's Director of Business Development for Ontario. \"Our discussions with stakeholde...