EDMONTON, Alberta – July 9, 2009 – EPCOR Power L.P. (TSX: EP.UN) (the Partnership) today announced changes in the senior management of EPCOR Power Services Ltd., the General Partner of the Partnership. These changes follow the completion of Capital Power Corporation’s (TSX: CPX) (Capital Power) initial public offering of common shares.
Effective July 1, 2009, Donald Lowry has resigned as Chairman of the Board and a director of EPCOR Power Services Ltd. and the Board has approved the following changes:
- Brian Vaasjo, previously the President of the General Partner, and currently the President and Chief Executive Officer of Capital Power, has been appointed Chairman of the Board of the General Partner;
- Stuart Lee, previously the Chief Financial Officer of the General Partner, and currently the Senior Vice President, Finance and CFO of Capital Power, has been appointed President of the General Partner; and
- Tony Scozzafava, Vice President, Taxation of Capital Power, has been appointed Chief Financial Officer of the General Partner. Mr. Scozzafava joined EPCOR in 2001 and has led taxation compliance and strategy development. He now assumes a similar role at Capital Power. Mr. Scozzafava holds a Bachelor of Commerce degree from the University of Alberta and is a Chartered Accountant.
In addition, James Oosterbaan, Senior Vice President, Commercial Services of Capital Power has been appointed as a director of the General Partner to replace Mr. Lowry. Mr. Oosterbaan joined EPCOR in 2001 and has been responsible for the competitive power and water business in Alberta. Mr. Oosterbaan is a graduate of Stanford University’s Executive Management Program. He holds a Master of Business Administration degree from the Ivey School of Business and a Bachelor of Business Administration (Honours) degree from Wilfred Laurier University.
In connection with its initial public offering Capital Power today announced that, EPLP Investments Inc. (EPLP Investments) acquired 16,513,504 limited partnership units (Units) in the capital of EPCOR Power L.P. (EPLP), and all of the common shares of the general partner of EPLP from subsidiaries of EPCOR, representing 30.6 per cent of the total outstanding limited partnership units (the Acquisition). Through the Acquisition, EPLP Investments also indirectly acquired an interest in the common shares of EPCOR Power Equity Ltd., all of the common shares of which are owned by EPLP. EPCOR Power Equity Ltd.’s preferred shares are listed on the Toronto Stock Exchange under the symbol EPP.PR.A. EPCOR Utilities Inc. (EPCOR) owns 51 voting, non-participating shares of EPLP Investments and Capital Power, through Capital Power LP, owns 49 voting, participating shares of EPLP Investments.
As consideration for the Units, EPLP Investments issued 49 Class B voting, participating shares valued at $1.00 and a promissory note in the principal amount of $200 million. Following completion of the Acquisition, EPLP Investments holds a total of 16,513,504 Units, representing a 30.6 per cent interest in EPLP, and EPLP continues to own all of the common shares of EPCOR Power Equity Ltd.
The Acquisition occurred as part of the transfer of EPCOR’s power generation business to Capital Power and its related entities in connection with the initial public offering. Through this transfer, Capital Power also acquired the companies that provide management and operations services to EPLP and its subsidiaries. EPLP Investments intends to hold the Units for investment purposes and, in accordance with applicable securities laws, it may increase or decrease its investment in EPLP in the future depending on market conditions and then relevant factors; provided, however that EPLP and each of EPCOR and Capital Power have agreed to a standstill whereby Capital Power and EPCOR are not able to increase their ownership in EPLP without the consent of the independent directors of EPLP’s general partner until July 1, 2010, subject to certain exceptions relating to maintaining the minimum 30 per cent interest in EPLP. EPLP Investments relied upon the private agreement exemption from the formal take-over bid requirements of Canadian securities laws.
The registered office of EPLP Investments is 10065 Jasper Avenue, Edmonton, AB, T5J 3B1.
About Capital Power
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 3,300 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 website can be accessed at: www.capitalpower.com.
About EPCOR Power L.P.
Established in 1997, EPCOR Power L.P. is a limited partnership organized under the laws of the Province of Ontario. The Partnership’s portfolio consists of 19 wholly-owned power generation assets located in Canada and the United States, a 50.15 per cent interest in a power generation asset in Washington State, and an overall 15.4 per cent equity interest in Primary Energy Recycling Holdings LLC (PERH). 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. PERH wholly owns four recycled energy assets in the United States with an aggregate generation capacity of 283 megawatts and nearly two million pounds per hour of thermal energy, and has a 50 per cent interest in a pulverized coal facility. EPCOR USA Ventures LLC, formerly Primary Energy Ventures LLC, a wholly-owned subsidiary of the Partnership, manages and operates these facilities for PERH. For more information on the Partnership, please visit: www.epcorpowerlp.ca.