EPCOR to assume role of manager and operator of the Partnership's assets
------------------------------------------------------------------------
EPCOR Utilities Inc. will host a live video webcast on Tuesday, May 17,
2005 at 9:00 a.m. (EDT). Immediately following, there will be an analyst
conference call, followed by a news conference. To access the webcast,
please visit www.epcor.ca. Please refer to the conference call
information at the end of this news release.
------------------------------------------------------------------------
EDMONTON and CALGARY, May 17 /CNW/ - EPCOR Utilities Inc. (EPCOR) and
TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) have entered into an
agreement whereby EPCOR will acquire TransCanada's interest in TransCanada
Power, L.P. (TSX: TPL.UN) for $529 million.
TransCanada Power, L.P. (the Partnership) is a limited partnership that
owns a portfolio of 11 power generation assets in Canada and the
United States, with a total generating capacity of 744 megawatts. The
generation plants include natural gas, small-scale hydro and bio-mass
facilities.
EPCOR's acquisition includes:
- Approximately 14.5 million units of the Partnership, representing
approximately 30.6 per cent of the outstanding units;
- 100 per cent ownership of the General Partner of the Partnership; and
- Management and operations agreements governing the ongoing operation
of the Partnership's power generation assets.
The transaction has been approved by the Boards of each of TransCanada,
EPCOR and the Partnership, and is expected to close in the third quarter of
2005, subject to regulatory approvals. When the transaction closes,
TransCanada expects to realize an after tax gain of approximately
$200 million. TransCanada will continue to operate and maintain the
Partnership's power plants until closing. TransCanada has agreed to provide
operations and support services to EPCOR and the Partnership during a
transition period following closing to facilitate an orderly transfer of
management functions for the Partnership. EPCOR will change the Partnership's
name and ticker symbol, to take effect at the close of the transaction.
"EPCOR is pleased to announce the acquisition of a significant ownership
interest in one of Canada's premier power partnerships," said EPCOR President
and CEO Don Lowry, who EPCOR will nominate to become Chairman of the
Partnership. "Our investment in the Partnership represents the cornerstone of
EPCOR's long-term power growth strategy, and this commitment will be
demonstrated over time through project development, acquisitions and the
transfer of quality power assets to the Partnership on a basis that will be
accretive to unitholder value. We look forward to assuming sponsorship of the
Partnership. We have committed to maintain our investment in the Partnership
as a long-term core asset for EPCOR."
"EPCOR brings to the Partnership over 100 years of experience operating
power assets," Lowry continued. "We currently operate over 2,400 megawatts of
generation capacity in Alberta, British Columbia, Washington State and
Ontario. EPCOR has consistently had Canadian generating assets ranked among
the top ten nationally in the Canadian Electricity Association's annual
rankings of operating reliability and availability. Our extensive expertise in
the power sector across a broad range of fuel sources will serve the
Partnership well in efficiently operating the Partnership's existing assets
and in identifying, evaluating and successfully pursuing future opportunities
for growth."
"The Partnership's assets operate under long-term contracts, and have a
proven record of strong, stable operating performance," said EPCOR Executive
Vice President Brian Vaasjo, who EPCOR will nominate to become President of
the Partnership. "As the manager and operator, our goal will be to maintain
this performance at the existing plants, and to develop or acquire additional
high quality assets for the Partnership on an accretive basis."
Vaasjo continued: "The change in sponsorship should have no impact on the
high reliability of the assets and no material impact on the costs of the
Partnership. In our new role as sponsor to the Partnership, we are confident
that we will be able to maintain the stability that unitholders have become
accustomed to. EPCOR and the Partnership will enjoy excellent alignment,
partly as a result of the Partnership having a 'right of first look' on
potential power generation acquisitions available to EPCOR. Furthermore, EPCOR
currently owns an inventory of power generation assets that possess
characteristics that would make them attractive acquisitions for the
Partnership."
"TransCanada Power, L.P. has performed exceptionally well for both
TransCanada and the Partnership's public unitholders," said Hal Kvisle,
TransCanada's President and CEO. "Under our sponsorship, TransCanada Power,
L.P. has grown significantly while generating strong returns for Partnership
unitholders, including TransCanada. However, the completion of this
transaction will enable TransCanada to focus on our much larger,
directly-owned power businesses in Canada and the United States. We are
pleased to have reached agreement to divest our interests in TransCanada
Power, L.P. to EPCOR, a strong and capable sponsor with a proven record in the
power business."
RBC Capital Markets and BMO Nesbitt Burns acted as exclusive financial
advisors to EPCOR and TransCanada, respectively, in association with the
transaction.
About TransCanada Power, L.P.
Established by TransCanada in 1997, TransCanada Power, L.P. (TSX: TPL.UN)
is a limited partnership organized under the laws of the Province of Ontario
which owns and operates a portfolio of power generation assets in Canada and
the United States. The Partnership has the highest stability ratings of any
power income fund, rated STA-1 (low) by Dominion Bond Ratings Service and SR-1
by Standard & Poor's.
Outstanding units can only be held by residents of Canada and are
considered foreign property for purposes of inclusion in registered retirement
savings plans, registered retirement income funds or deferred profit sharing
plans.
About EPCOR Utilities Inc.
EPCOR Utilities Inc. is one of Canada's top providers of energy and
energy-related services and products, providing power and water solutions to
customers in Alberta, Ontario, British Columbia and the U.S. Pacific
Northwest. Drawing on over 100 years of experience, EPCOR builds, owns and
operates power plants, electrical transmission and distribution networks,
water and wastewater treatment facilities, and infrastructure.
EPCOR has been named one of Canada's Top 100 employers for five
consecutive years, and was the 2004 Overall Winner of the Conference Board of
Canada/Spencer Stuart National Award in Governance. With over $4 billion in
assets, EPCOR is headquartered in Edmonton, Alberta. EPCOR's web-site is
www.epcor.ca.
About TransCanada Corporation
TransCanada is a leading North American energy company. TransCanada is
focused on natural gas transmission and power services with employees who are
expert in these businesses. TransCanada's network of approximately
41,000 kilometres (25,600 miles) of pipeline transports the majority of
Western Canada's natural gas production to the fastest growing markets in
Canada and the United States. Excluding its interests in TransCanada Power,
L.P.'s 744 megawatt portfolio, TransCanada owns, controls or is constructing
approximately 5000 megawatts of power generation - an amount of power that can
meet the needs of about 5 million average households. TransCanada's common
shares trade under the symbol TRP on the Toronto and New York stock exchanges.
Visit www.transcanada.com for more information.
FORWARD-LOOKING INFORMATION
Certain information in this news release is forward-looking and is
subject to important risks and uncertainties. The results or events predicted
in this information may differ from actual results or events. Factors which
could cause actual results or events to differ materially from current
expectations include, among other things, the ability of each of TransCanada
and EPCOR to successfully implement their respective strategic initiatives and
whether such strategic initiatives will yield the expected benefits, the
availability and price of energy commodities, regulatory decisions,
competitive factors in the pipeline and power industry sectors, and the
current economic conditions in North America. For additional information on
these and other factors, see the reports filed by TransCanada and EPCOR with
Canadian securities regulators and with the United States Securities and
Exchange Commission. TransCanada and EPCOR disclaim any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
------------------------------------------------------------------------
EPCOR Utilities Inc. will host a live video webcast at 9:00 a.m. (EDT)
and two separate conference calls on Tuesday, May 17, 2005. To access the
webcast, please visit www.epcor.ca. The webcast will also be available in
audio only by conference call. Dial 416-405-8532 or 1-877-295-2825 at
9:00 a.m. EDT
------------------------------------------------------------------------
9:20AM Analyst Call
-------------------
Local: 416-405-8532
North American Toll Free: 1-877-295-2825
Instant Replay (end date Tuesday May 24, 2005):
Local: 416-695-5800
North American Toll Free: 1-800-408-3053
Passcode: 3152986 followed by the number sign
10:30AM Media Conference
------------------------
Place: Metro Toronto Convention Centre,
Room 201B/D, 255 Front Street West, Toronto.
Call Nos:
---------
Local: 416-470-1030
North American Toll Free: 1-877-767-7642
Instant Replay (end date Tuesday May 24, 2005):
Local: 416-695-5800
North American Toll Free: 1-800-408-3053
Passcode: 3152990 followed by the number sign
------------------------------------------------------------------------
Backgrounder: Generating assets owned by TransCanada Power, L.P.
<<
-------------------------------------------------------------------------
Unit Capacity Location Commissioning Power Purchase
(MW) Date Contract Expiry
-------------------------------------------------------------------------
Calstock 35 Ontario October 2000 2020
-------------------------------------------------------------------------
Castleton 64 New York March 1992 2008
-------------------------------------------------------------------------
Curtis Palmer 60 New York January 1985 2027
-------------------------------------------------------------------------
Kapuskasing 40 Ontario March 1997 2017
-------------------------------------------------------------------------
Mamquam 50 British Columbia November 1996 2027
-------------------------------------------------------------------------
ManChief 300 Colorado July 2000 2012
-------------------------------------------------------------------------
Nipigon 40 Ontario May 1992 2012
-------------------------------------------------------------------------
North Bay 40 Ontario March 1997 2017
-------------------------------------------------------------------------
Queen Charlotte 6 British Columbia September 1990 2022
-------------------------------------------------------------------------
Tunis 43 Ontario January 1995 2015
-------------------------------------------------------------------------
Williams Lake 66 British Columbia April 1993 2018
-------------------------------------------------------------------------
>>
Mogelijk gemaakt door 
Translate
Translate