Yahoo Finance Capital Power announces a 4.5-year contract renewal for Island Generation
EDMONTON, Alberta, May 16, 2022 (GLOBE NEWSWIRE) -- Capital Power Corporation (“Capital Power”) (TSX: CPX) announced today the execution of a 4.5-year Electricity Purchase Agreement (EPA) through October 2026 for its Island Generation facility with BC Hydro. The EPA is subject to regulatory approval by the British Columbia Utilities Commission (BCUC).
“Island Generation has been providing reliable backup power to Vancouver Island and Metro Vancouver for two decades,” said Brian Vaasjo, President and CEO of Capital Power. “It is the largest power generation facility on Vancouver Island, representing about one-third of total power capacity generation for the Island and has been a dependable system resource to BC Hydro by providing critical backup power and grid reliability. This 4.5-year EPA will provide BC Hydro customers with important contingency backup supply.”
“We believe Island Generation will continue to be required for reliability purposes on Vancouver Island beyond the 4.5-year term. We continue to advocate for longer-term recontracting of Island Generation as part of our active participation in BCUC’s public regulatory review process to finalize BC Hydro’s Integrated Resource Plan,” stated Mr. Vaasjo.
Island Generation is a 275-megawatt natural gas-fired combined cycle facility located in Campbell River on Vancouver Island, BC. Capital Power acquired Island Generation in October 2010 when it was fully contracted under a 12-year tolling arrangement with BC Hydro that expired in April 2022.
The terms of the 4.5-year EPA are consistent with the Company’s expectations when it recorded a $52 million impairment in 2021.
About Capital Power
Capital Power (TSX: CPX) 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 approximately 6,600 MW of power generation capacity at 27 facilities across North America. Projects in advanced development include approximately 385 MW of owned renewable generation capacity in North Carolina and Alberta and 512 MW of incremental natural gas combined cycle capacity, from the repowering of Genesee 1 and 2 in Alberta.
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