Calgary/Edmonton –EPCOR Utilities Inc. (collectively with its subsidiaries, “EPCOR”) and ENMAX Corporation (“ENMAX”) today announced that they have each authorized the sale and purchase, respectively, of EPCOR’s interest in the Battle River Power Purchase Arrangement (PPA) and EPCOR’s Battle River Power Syndicate Agreement (PSA).
The sale, for a total consideration of $567 million, is expected to be completed in five installments ending January 1, 2010.
Completion of the purchase and sale transaction remains subject to the completion of certain steps, including execution of definitive agreements, Competition Bureau approval, transfer of PPA syndicate interests between EPCOR and its partners, and consent from the PPA facility owner, Alberta Power (2000) Ltd. The initial installment of the transaction is expected to close on or before May 29, 2006.
“This transaction will allow us to continue to provide a long-term, competitively priced, stable, secure supply of electricity for our customers,” said Gary Holden, President and CEO, ENMAX Corporation, “and is a key step in our overall strategy to continue to be a leading energy supplier in Alberta.”
“The sale will crystallize the value EPCOR holds in the Battle River PPA, broaden market participation, and create opportunities for EPCOR to consider additional strategic investments in Alberta’s power market,” said EPCOR President and CEO Don Lowry.
EPCOR acquired the Battle River PPA in August 2000 through an auction conducted by the Government of Alberta as part of provincial electricity deregulation. The PPA includes Alberta Power (2000) Ltd’s Battle River 3, 4 and 5 Units, with a total committed capacity of 662.8 megawatts. The PPA holder is entitled to sell the output from the units up to their committed capacity, and is obligated to pay the unit owner in accordance with the costs set out in the arrangement. The arrangement for Unit 5 runs until December 31, 2020, and the arrangement for Units 3 and 4 runs until December 31, 2013.
Forward Looking Information
Certain information in this press release is forward-looking and related to anticipated financial performance, events and strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "target" or similar words suggest future outcomes. By their nature, such statements are subject to significant risks and uncertainties, which could cause EPCOR’s actual results and experience to be materially different than the anticipated results. Such risks and uncertainties include, but are not limited to, operating performance, commodity prices and volumes, load settlement, regulatory and government decisions, weather and economic conditions, competitive pressures, construction risks, obtaining financing and the performance of partners, contractors and suppliers.
Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Except as required by law, EPCOR disclaims any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
EPCOR Utilities Inc. builds, owns and operates power plants, electrical transmission and distribution networks, water and wastewater treatment facilities, and infrastructure in Alberta, Ontario and the U.S. Northeast, and British Columbia and the U.S. Pacific Northwest. EPCOR has been named one of Canada’s Top 100 employers for six consecutive years, and is headquartered in Edmonton, Alberta. EPCOR’s web-site is www.epcor.ca
ENMAX Corporation and its predecessors have provided Albertans with safe and reliable electricity for over 100 years. ENMAX provides electricity, natural gas, renewable energy and value-added services to more than 457,500 residential, commercial and industrial customers in Alberta through its subsidiary companies. In addition to owning 50 per cent of the McBride Lake Wind Farm – one of Canada’s largest wind power facilities – the company has the first and largest green power marketing program of its kind in Canada. In 2006, ENMAX Energy Corporation received the Consumer Champion Award for its ground-breaking EasyMax program. For more information, visit www.enmax.com .