January 25, 2007 - Toronto - EPCOR has notified stakeholders that the company will be re-examining plans for the proposed Kingsbridge II wind power development project in the Township of Ashfield-Colborne-Wawanosh, near the south shore of Lake Huron.
Based on the current status of required local and provincial approvals, and uncertainties about the timeline for certain future approval processes, EPCOR has decided to re-examine the project design and schedule, and is terminating arrangements with certain suppliers. The company expects to recognize charges resulting from these decisions in its financial statements, which could be as much as $20 million before tax.
"In the absence of a reasonable level of certainty about a construction commencement date, it is prudent for us to re-examine the project design and schedule," said Paul McMillan, Senior Vice President, EPCOR Ontario. "The termination of arrangements with certain suppliers will facilitate our review."
"We've worked closely with the local community and landowners in Ashfield-Colborne-Wawanosh, and we want to thank them for their support," McMillan continued. "In the meantime, we look forward to remaining an active member of the community through the continued operation of our existing Kingsbridge I Wind Power Project, which was commissioned last year."
The 160-megawatt Kingsbridge II project was selected by the Ontario Ministry of Energy through a request for proposal process in November 2005, and assigned to the Ontario Power Authority (OPA) for management. EPCOR’s contract for Kingsbridge II remains in effect.
EPCOR Utilities Inc. builds, owns and/or operates power plants, electrical transmission and distribution networks, water and wastewater treatment facilities and infrastructure in Canada and the United States. EPCOR has been named one of Canada's Top 100 employers for seven consecutive years, and is headquartered in Edmonton, Alberta.
Forward-Looking Information
Certain information in this news 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", "intend", "target" and "expect" 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.
For more information
Media:
Neil Levine
(647) 999-6472
Investors:
Randy Mah
1-866-896-4636