Capital Power responds to Alberta’s climate leadership plan
EDMONTON, Alberta – Capital Power Corporation (“Capital Power”) (TSX: CPX) President and CEO Brian Vaasjo made the following statement, following the release of the Government of Alberta’s Climate Leadership Plan.
“Over the past several months, Capital Power was fully engaged with the climate change policy review being conducted by the Government of Alberta.
Capital Power is committed to helping Alberta and Canada implement meaningful action on climate change by accelerating the phase-out of coal and through growth in renewables.
Capital Power’s proposals to government during the consultation process included an accelerated closure of Alberta’s coal-fired power plants, with reasonable compensation to investors, and a transitional renewable approach tied to coal plant retirements that would otherwise maintain Alberta’s competitive electricity market. While the government’s retirement schedule for coal generation is substantially more aggressive than that proposed by Capital Power, we’re encouraged that the Climate Leadership Plan incorporates policy approaches that are consistent with our recommendations.
We’re also encouraged that the government has committed to treat workers, communities and affected companies fairly, avoid unnecessarily stranding capital, and implement its plan in a way that retains Alberta’s competitive electricity market.
The government has signalled that an independent facilitator and the system operator will work with owners of coal-fired power generation to develop a transition plan. Capital Power will work with them to successfully implement the government’s policies for the electricity sector and our investors.
Over the past decade, Capital Power has been the largest investor in Alberta power generation. We support government policies that treat investors fairly, and maintain an attractive climate for investment in new power generation. We are cautiously optimistic that with the effective implementation of the new policy framework, Alberta can continue to be an attractive market for investors in power generation.
Capital Power is well positioned to compete to supply both new merchant natural gas generation, and new renewables.
Near term opportunities include the Genesee 4 project, a fully-permitted combined cycle natural gas-fired generation facility proposed to be developed through a joint venture with ENMAX. Capital Power has also applied to connect a proposed 150-megawatt wind farm to the grid, near our existing Halkirk Wind facility.
We will continue to assess today’s policy announcements in detail, including changes to Alberta’s carbon pricing regime which would take effect in 2018, and incorporate our analysis into Capital Power’s Investor Day presentation on December 3, 2015.”
Capital Power’s Alberta Business
- Capital Power owns more than 3,200 megawatts of power generation capacity at 17 facilities across North America.
- In its core market of Alberta, Capital Power owns 2,366 MW of power generation capacity through ownership interests in nine facilities.
- On a capacity basis, 58% of the company’s Alberta power generation is from coal-fired units, 36% from natural gas-fired units, and 6% from wind power.
- Capital Power owns an additional 371 MW of Alberta coal-fired power capacity through a power purchase arrangement that entitles the company to a portion of the output from Units 5 and 6 of the Sundance power plant until 2020.
- By market capitalization, Capital Power is one of the largest companies headquartered in Edmonton. The company’s Genesee operations directly engage more than 500 employees and contractors in the Edmonton region.
Supercritical coal-fired power generation
- All but two of Alberta’s coal-fired facilities use subcritical generation technology.
- Capital Power owns 50% of Genesee 3 and Keephills 3, which use supercritical combustion technology that delivers greater fuel efficiency and lower emissions. Opened in 2005 and 2011, they are among the cleanest coal-fired units in North America. Under federal regulations, the units would have operated until 2055 and 2061.
- Greenhouse gas (GHG) emissions at Genesee 3 and Keephills 3 are up to 20% lower than at other Alberta coal units, and the remaining GHG emissions are offset to the level of natural gas combined cycle unit.
- In addition, Genesee 3 and Keephills 3 are equipped with pollution control technologies that reduce air emissions such as NOx and SO2 by 50 – 70% compared to older facilities, and capture more than 99.8% of particulate emissions.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, operates and optimizes power generation from a variety of energy sources. Capital Power owns more than 3,200 megawatts of power generation capacity at 17 facilities across North America and owns 371 megawatts of capacity through a power purchase agreement. An additional 545 megawatts of owned generation capacity is under construction or in advanced development in Alberta and North Carolina.