Overview
Capital Power Income L.P. (the Partnership) is a limited partnership organized under the laws of the province of Ontario. The Partnership has an ownership interest in a portfolio of 20 power generation assets in Canada and the United States. These facilities efficiently generate electricity which is sold under long-term contracts.
The general partner, Capital Power Corporation, is responsible for transacting business on behalf of the Partnership. The general partner has engaged subsidiaries (the Managers) of Capital Power Corporation to perform management and administrative services on behalf of the Partnership and to operate and maintain the power plants pursuant to the Management and Operations Agreements.
The Partnership is distinguished from other limited partnerships in four areas:
- The quality of each of its generating facilities;
- The strong diversification of risk and stability of its cash flows, attributable to the long-term sales, fuel and operating contracts with solid counterparties combined with multiple plants and fuel sources;
- The experience and proven capabilities of the Partnership's management, which has a 100 year history of operating power generation assets, and has aligned its interest with the unitholders by holding a significant portion of the outstanding units and committing to growing its own power business along with the Partnership; and
- The growth in per unit distributions achieved through expansion of existing facilities or acquisition of new plants since its inception and/or commitment to further growth going forward.
Partnership Structure
The limited partnership investment structure allows the cash flows from the Partnership operations to flow to the unitholders while effectively deferring a portion of the taxes to a later date. The Partnership was originally formed to acquire the Nipigon, Kapuskasing and North Bay power plants. The Partnership now has an ownership interest in a portfolio of 20 power generation assets in Canada and the United States with a total net generating capacity of 1,287 megawatts and more than three million pounds per hour of thermal energy. The Partnership provides cash flow to its investors, including Capital Power.
Please note that the Partnership units can only be held by residents of Canada for purposes of the Income Tax Act (Canada). Further, the units are considered foreign property for purposes of inclusion in registered retirement savings plans, registered retirement income funds or deferred profit sharing plans.
Environment and Safety
The Partnership is committed to ensuring operations are conducted in a manner that is safe and responsible for both employees, neighbours and the environment.
The Partnership features generation assets that use a mix of environmentally responsible fuels.
The Partnership has implemented practices that currently meet or exceed all of the regulatory and environmental policies governing plant operations. Safety is of key importance to the operations of the plants.
The Partnership also owns generation assets that utilize natural gas, waste heat, wood waste and hydro-power.
For more information see: Tax | Cash Distribution