EDMONTON, Alberta – Capital Power Corporation (TSX: CPX) (“Capital Power” or the “Company”) announced today the closing of its inaugural $1 billion Sustainability-Linked Credit facilities (“SLCs”). The Company extended and amended its existing committed credit facilities transitioning them into SLCs. This announcement demonstrates the continued integration of sustainability priorities into the Company’s strategic direction and its commitment to environmental, social and governance (“ESG”) leadership in the power generation sector.
“As we work to power a brighter, sustainable future for generations to come, we’re excited to take this next step in embedding ESG into our financing foundation – the transformation of our credit facilities clearly demonstrates our priorities. Sustainability is our strategy and we’re taking action today,” said Sandra Haskins, Senior Vice President, Finance and Chief Financial Officer. “As a power generator, we’re committed to advancing the clean energy required for our collective prosperous future. This announcement reinforces our commitment to be net carbon neutral by 2050 by linking reductions in GHG emissions intensity to our credit facilities, while ensuring we maintain access to sufficient liquidity to continue to fund our low-carbon growth.”
Sustainability-Linked Credit Facilities
The 5-year, $1 billion SLCs reinforce Capital Power’s ESG ambitions and commitments by introducing financial incentives to reach its ESG goals. The SLCs are structured with one key performance indicator with annual Sustainability Performance Targets aligned to one of Capital Power’s publicly stated Sustainability Targets: To reduce Scope 1 CO2 emission intensity by 65% by 2030 from 2005 levels. The SLCs include terms that reduce or increase borrowing costs as the annual targets are met or missed. Achievement of the Company’s GHG emission intensity reductions will be driven by operational enhancements, strategic investments in renewables and decarbonization technologies, and the elimination of coal through the Genesee repowering project.
Additional Sustainability Highlights
Capital Power is committed to being net carbon neutral by 2050 and continues to show ESG-leadership through business decisions that support a sustainable future for its communities, employees, operations, shareholders and the environment. To be carbon neutral by 2050, in addition to the SLCs announcement, the Company:
- Announced its decision to transform its Genesee Generating Station to natural gas power generation, ending coal-fired generation in 2023, six years ahead of the legislated off-coal date (2020).
- Publicly stated 10 Sustainability Targets, addressing a spectrum of ESG-related priorities (2019).
- Enhanced its annual disclosures about its ESG performance and priorities through Integrated Annual Reports (2019) and Climate Change Disclosure Reports (2018).
- Added sustainability to its Board’s mandate (2018).
- Appointed a Chief Sustainability Officer (2018).
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 includes: (i) our priorities and long-term strategies, including our corporate, sustainability and renewables strategies; (ii) expectations regarding access to sufficient liquidity, (iii) our company-wide targets specific to sustainability and climate-related performance, including reduction of emissions intensity and being net carbon neutral by 2050; and (iv) transformation of the Genesee Generating Station to natural gas power generation and ending coal-fired generation in 2023.
These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements relate to: (i) electricity and other energy and carbon prices; (ii) Company performance; (iii) business prospects (including potential re-contracting of facilities) and opportunities including expected growth and capital projects; (iv) the status of and impact of policy, legislation and regulations; (v) effective tax rates; (vi) the development and performance of technology; and (vii) foreign exchange 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) generation facility availability, wind capacity factor and performance including maintenance expenditures; (ii) changes in electricity, natural gas and carbon prices in markets in which Capital Power operates and the use of derivatives; (iii) regulatory and political environments including changes to environmental, climate, financial reporting, market structure and tax legislation; (iv) acquisitions and developments including timing and costs of regulatory approvals and construction; (v) ability to fund current and future capital and working capital needs; (vi) changes in energy commodity market prices and use of derivatives; (vii) changes in the availability of fuel; (viii) ability to realize the anticipated benefits of acquisitions; (ix) limitations inherent in the Company’s review of acquired assets; (x) changes in general economic and competitive conditions; (xi) changes in the performance and cost of technologies and the development of new technologies, new energy efficient products, services and programs.
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 is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta. We build, own and operate high-quality, utility-scale generation facilities that include renewables and thermal. We have also made significant investments in carbon capture and utilization to reduce carbon impacts and are committed to be off coal in 2023. Capital Power owns over 6,400 megawatts (MW) of power generation capacity at 26 facilities across North America. Projects in advanced development include 425 MW of owned renewable generation capacity in North Carolina and Alberta and 560 MW of incremental natural gas combined cycle capacity, from the repowering of Genesee 1 and 2 in Alberta.