EPCOR Utilities Forms Capital Power

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EPCOR Utilities Inc. plans to create Capital Power Corp., a power generation company that will be permanently headquartered in Edmonton, Alberta.

Capital Power will acquire all the power generation assets and related operations of EPCOR, including its 30.6% interest in EPCOR Power LP, and be responsible for a portfolio of approximately 3,300 MW of owned and/or operated power generation capacity at 31 facilities in Canada and the U.S. It will fund its development by directly accessing capital markets as required.

EPCOR will continue to provide regulated power transmission and distribution, water, and wastewater services to more than 1 million customers in Western Canada, including Edmonton. The utility's portfolio also includes wind power projects.


Capital Power plans to develop and build power plants across North America and continue the commercialization of near-zero emission power generation technologies, including integrated gasification combined cycle and amine scrubbing.

EPCOR may eventually sell all or a substantial portion of its ownership interest, subject to market conditions, its requirements for capital and other circumstances that may arise in the future, with proceeds from share sales to be reinvested in EPCOR's growing utility infrastructure businesses, including water, wastewater, power transmission and power distribution.

As a first step, EPCOR is planning an initial public offering of common shares of Capital Power representing approximately 25% of the power generation business. A preliminary prospectus for the offering is expected to be filed with securities regulators in Canada.

EPCOR anticipates that the closing of the initial public offering of Capital Power shares will be completed mid-year, and it has engaged TD Securities Inc. and Goldman Sachs Canada Inc. to act as joint-bookrunners.

SOURCE: EPCOR Utilities Inc.

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