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Publish Date : 30-Aug-2013

Capital Power Corporation and Capital Power L.P., the legal entity that indirectly holds substantially all of Capital Power Corporation's assets (together, Capital Power or the Company), today announced that Emera Inc. (Emera) has entered into an agreement to acquire Capital Power's three New England combined cycle, natural gas-fired power generation facilities for US$541 million.

The facilities are Bridgeport Energy, a 520-megawatt power station in Bridgeport, CT, that has been operational since 1999; Tiverton Power, a 265-megawatt power station in Tiverton, RI, that has been operational since 2000; and Rumford Power, a 265-megawatt power station in Rumford, ME, that has been operational since 2000. The transaction includes certain emissions credits.

"The transaction is consistent with our focus on enhancing Capital Power's returns for shareholders while rebalancing risk in our portfolio," said Capital Power President & CEO Brian Vaasjo. "The sale proceeds for the New England assets will be redeployed to reduce our merchant risk profile and provide more predictable earnings and cash flow."

Capital Power's merchant power activities will now be focused on Alberta. The company will continue to pursue growth in contracted power generation across North America.

"Focusing Capital Power's business is the best way to create immediate and long-term value for shareholders and balance the Company's merchant and contracted portfolio," said Capital Power President & CEO Brian Vaasjo. "While we will continue to pursue contracted power generation opportunities throughout North America, growth in our merchant power business and our trading activities will now be focused on North America's strongest power market, Alberta."

"Our re-focusing reflects the fact that North American power markets have evolved over the past several years." Mr. Vaasjo continued. "Capital Power can now pursue higher value investment opportunities in the fast-growing Alberta market. For example, we expect the Shepard Energy Centre to deliver improved returns for shareholders, and provide a combination of contracted and merchant cash flow that reduces Capital Power's portfolio risk and earnings volatility."

The Company will wind down its commodity and energy trading business outside Alberta before year end, closing its Toronto office immediately and its Chicago office in 2014. Energy trading and portfolio management activities will continue within Alberta. Focused teams in Alberta, Boston and San Diego will continue to pursue growth, seeking contracted development and acquisition opportunities across North America, and both merchant and contracted opportunities within Alberta.

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