EDMONTON, Alberta - October 5, 2010 - Capital Power Income L.P. (TSX: CPA.UN) ("CPILP" or the "Partnership"), and Capital Power Corporation (TSX: CPX) ("CPC," "Capital Power," or the "Company"), today jointly announced that CPILP will initiate a process to review its strategic alternatives.
This decision is the result of strategic review processes, undertaken by each of a Special Committee of CPILP Independent Directors and CPC, to explore alternatives for maximizing value for CPILP unitholders and CPC shareholders, respectively.
CPILP has retained independent legal and financial advisors to assist with the process. CPC has advised the Special Committee that it will support the review of strategic alternatives, and that if the process results in a determination to proceed with a sale of the Partnership, CPC does not intend to participate as a prospective buyer.
The initiation of the strategic review is not in response to any proposed transaction for CPILP, nor can there be any assurances that it will lead to a transaction.
The process to review strategic alternatives is anticipated to take place over the next several months. During this period it will be business as usual for CPILP and CPC and it is anticipated that CPILP will continue to provide the same amount of monthly distributions to its unitholders, and maintain the same investor proposition that it offers today supported by its high quality portfolio of contracted power assets. CPC, through wholly owned subsidiaries, will continue to manage CPILP assets, identify acquisition opportunities that fit CPILP's strategy, and deliver on business plan priorities.
The Company and the Partnership will host a joint conference call with analysts on Tuesday, October 5, 2010 at 1:00 pm (Eastern Time) to discuss this announcement. The conference call dial-in numbers are:
A replay of the conference call will be available following the call at: (877) 353-9587 (toll-free) and entering pass code 388348#. The replay will be available until midnight on October 12, 2010.
Interested parties may also access the webcast available following the conference call.
Certain information in this news release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated financial performance, events or strategies. When used in this context, words such as will, anticipate, believe, plan, intend, target, and expect or similar words suggest future outcomes. Forward-looking information in this news release includes, among other things, information in respect of CPILP's initiating a process to review its strategic alternatives, including, without limitation, information relating to (i) the timing of the process, (ii) that it will be business as usual for CPILP and CPC during the process, and (iii) the monthly distributions of the Partnership while the process is underway.
The statements contained in this news release are based on certain assumptions and analyses made by each of the Company and the Partnership, as the case may be, in respect of itself and in light of each of their respective experiences and perceptions of historical trends, current conditions and expected future developments and other factors each believes are appropriate. The material factors and assumptions used to develop these forward-looking statements include, but are not limited to: (i) the Company's and the Partnership's financial position, credit facilities and sources of funding; (ii) the Company's and the Partnership's assessments of commodity and power markets; (iii) the Company's and the Partnership's assessments of the markets and regulatory environments in which it operates; (iv) the Company's and the Partnership's assessments of economic conditions; (v) weather; (vi) availability and cost of labour and management resources; (vii) performance of contractors and suppliers; (viii) availability and cost of financing; (ix) foreign exchange rates; (x) managements' analysis of applicable tax legislation; (xi) the currently applicable and proposed tax laws will not change and will be implemented; (xii) currently applicable and proposed environmental regulations will be implemented; (xiii) counterparties will perform their obligations; (xiv) ability to successfully execute, integrate and realize benefits of any investments and acquisitions; (xv) ability to implement strategic initiatives which will yield the expected benefits and results; (xvi) the Company's and the Partnership's assessments of capital markets; (xix) the Company's and the Partnership's assessments of the alternatives that may be available to CPILP.
Whether actual results, performance or achievements will conform to the Company's and the Partnership's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company's and the Partnership's expectations. Such risks and uncertainties include, but are not limited to risks relating to: (i) the process may take more or less time than anticipated; (ii) operation of the Company's and the Partnership's facilities; (iii) power plant availability and performance; (iv) unanticipated maintenance and other expenditures; (v) availability and price of energy commodities; (vi) electricity load settlement; (vii) regulatory and government decisions including changes to environmental, financial reporting and tax legislation; (viii) weather and economic conditions; (ix) competitive pressures; (x) construction; (xi) availability and cost of financing; (xii) foreign exchange; (xiii) availability and cost of labour, equipment and management resources; (xiv) performance of counterparties, partners, contractors and suppliers in fulfilling their obligations to the Company; (xv) developments in the North American capital markets; (xvi) compliance with financial covenants; (xvii) ability to successfully realize the benefits of acquisitions and investments; and (xviii) the tax attributes of and implications of any acquisitions. If any such risks actually occur, they could materially adversely affect the Company's and the Partnership's business, financial condition or results of operations. In that case the trading price of the Company's common shares and the Partnership's units could decline, perhaps materially.
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management's current expectations, and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. The Company and the Partnership do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company's or the Partnership's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
Capital Power is a growth-oriented North American independent power producer, building on more than a century of innovation and reliable performance. The company's vision is to be recognized as one of North America's most respected, reliable and competitive power generators. Headquartered in Edmonton, Alberta, Capital Power has interests in 31 facilities in Canada and the U.S. totaling approximately 3,500 megawatts of generation capacity. Capital Power and its subsidiaries develop, acquire and optimize power generation from a wide range of energy sources. The company's web site can be accessed at http://www.capitalpower.com/.
Established in 1997, Capital Power Income L.P. is a limited partnership organized under the laws of the Province of Ontario. The Partnership's portfolio includes 19 wholly-owned power generation assets located in Canada and the United States and a 50 per cent interest in a power generation asset in Washington State. The Partnership's assets have a total net generating capacity of 1,400 megawatts and more than four million pounds per hour of thermal energy. For more information on the Partnership, please visit: http://www.capitalpowerincome.ca/.