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EDMONTON, Alberta, June 21, 2021 (GLOBE NEWSWIRE) – Capital Power Corporation (TSX: CPX) (Capital Power) provides initial response to BC Hydro’s draft Integrated Resource Plan (IRP) submitted to British Columbia today Utilities Commission (BCUC).
The IRP project refers to two independent natural gas-fired power plants, including Capital Power’s Island Generation plant in Campbell River on Vancouver Island, for which BC Hydro does not currently intend to renew. the long-term power purchase agreement (EPA) expiring in April 2022. as indicated in the excerpt below:
The 275 MW Island Generation facility (located in the South Coast region) operates as a distributable facility based on system requirements and market conditions. Typically, we operate the facility infrequently in favor of other lower-cost resources, which means its greenhouse gas emissions are generally lower than a project like McMahon, around 10,000. tonnes of CO2e per year. The power purchase agreement with Island Generation expires in fiscal year 2023.
Although we have had discussions with Island Generation’s counterparty to understand the potential terms of a renewal, at this time, there is no reason to assume that the power purchase agreement with this plant will be renewed. . Therefore, Island Generation is not presumed to be in operation in the load resource balance sheets applicable after fiscal year 2023, and its renewal is not contemplated in the base resource plan.
“We continue to believe that the Island Generation facility is necessary to ensure a safe and reliable supply of electricity to homes and businesses on Vancouver Island and in Metro Vancouver and we will actively participate in the consultation process.” said Chris Kopecky, senior vice president and chief legal officer, Capital Power’s business and development officer. “The facility has been extremely reliable for BC Hydro with an average availability of 99% over the past five years, providing critical back-up power and grid reliability for Vancouver Island and Metro Vancouver over the past five years. decade under Capital Power after its acquisition in 2010. “
Contract renewal status does not impact 2021 results and based on Capital Power’s current contract renewal assumptions, contract non-renewal is not material to cash flow expectations future of management.
Forward-looking information The forward-looking information or statements included in this press release are provided to inform the shareholders of the Company and potential investors of management’s assessment of Capital Power’s future plans and activities. This information may not be appropriate for other purposes. Forward-looking information contained in this press release is generally identified by words such as will, anticipate, believe, plan, intend, target and expect or similar words which suggest future results.
Important forward-looking information contained in this press release includes information regarding expectations of future cash flows.
These statements are based on certain assumptions and analyzes made by the Company in light of its experience and its perception of historical trends, current conditions and other factors that it deems appropriate. Significant factors and assumptions used in developing this forward-looking statement relate in large part to the prices of electricity, other energy and carbon, the performance of the facility and the future demand for production from the Island facility. Generation. The compliance of actual results with the Company’s expectations and forecasts is subject to changes in electricity, natural gas and carbon prices, regulatory and political environments, availability of facilities and changes in general economic and competitive conditions. . See Risks and Risk Management in the Activity Report section of the Company’s Integrated Annual Report for the year ended December 31, 2020, prepared on February 18, 2021, for a more in-depth discussion of these and other risks.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the approval date specified. The Company does not undertake or accept any obligation or commitment to publicly post any updates or revisions to forward-looking statements to reflect any change in the expectations of the Company or any change in the events, conditions or circumstances on which a such statement is based, except as required by law.
About Capital PowerCapital Power is a growth-oriented, sustainable energy strategy-driven North American wholesale power producer headquartered in Edmonton, Alberta. We build, own and operate high quality large scale production facilities that include renewable and thermal energy. We have also made significant investments in carbon capture and use to reduce carbon impacts and commit to no longer using coal by 2023. Capital Power has more than 6,400 megawatts (MW) of power generation capacity at 26 facilities in North America. The advanced development projects include 425 MW of renewable power generation capacity held in North Carolina and Alberta and 560 MW of additional combined cycle natural gas capacity, from the re-powering of Genesee 1 and 2 in Alberta.
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Source: Capital Power Corporation