99 megawatt New Frontier Wind project begins commercial operations
EDMONTON, Alberta – Capital Power Corporation (Capital Power or the Company) (TSX: CPX) announced its New Frontier Wind project, located in North Dakota, began commercial operation on December 21, 2018. The construction of the 99 megawatt facility was completed on-schedule and below its original project cost estimate of approximately $182 million (US$145 million).
On December 31, 2018 Capital Power received approximately $125 million (US$92 million) in net tax equity financing from J.P. Morgan in exchange for Class A interests of a subsidiary of the Company.
Capital Power will operate New Frontier Wind under a 12-year fixed price contract with an investment grade U.S. financial institution covering 87% of the facility’s output. Under the contract, Capital Power will swap the market revenue from a fixed volume of New Frontier Wind’s generation for a fixed price payment over a 12-year term.
“Utilizing our in-house construction capabilities, the construction of New Frontier Wind was completed in eight months and is another successful renewable development project in the United States,” said Brian Vaasjo, President and CEO of Capital Power. “With everything in place and completion below budget, New Frontier Wind is set to exceed our original return expectations.”
Forward-looking information or statements included in this press release are provided to inform the Company’s shareholders and potential investors about management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this press release is generally identified by words such as will, anticipate, believe, plan, intend, target, and expect or similar words that suggest future outcomes.
Material forward-looking information in this press release consists of the disclosure regarding the expected returns of the New Frontier Wind project.
This statement is based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop this forward-looking statement relate to: (i) electricity prices, (ii) anticipated facility performance, (iii) business prospects (including potential opportunities following the end of the 12-year fixed price contract), (iv) status of and impact of policy, legislation and regulations, and (v) effective tax rates.
Whether actual results, performance or achievements will conform to the Company’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 expectations. Such material risks and uncertainties are: (i) changes in electricity prices, (ii) regulatory and political environments including changes to environmental, market structure and tax legislation, (iii) facility availability and performance including maintenance of equipment, and (iv) changes in general economic and competitive conditions. See Risks and Risk Management in the Company’s Management’s Discussion and Analysis for the year ended December 31, 2017, prepared as of February 15, 2018, for further discussion of these and other risks.
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the specified approval date. The Company does 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 expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, owns, and operates power generation facilities using a variety of energy sources. Capital Power owns approximately 5,100 megawatts (MW) of power generation capacity at 25 facilities across North America. Approximately 900 MW of owned generation capacity is in advanced development in Alberta and Illinois.