TransCanada Power, L.P. renamed EPCOR Power L.P. following close of acquisition agreement
EPCOR Assumes Role of Manager and Operator of Partnership's Assets
CALGARY and EDMONTON, Alberta - September 1, 2005 - EPCOR Utilities Inc. (EPCOR) completed its acquisition of TransCanada Corporation's (TransCanada) interest in the TransCanada Power, L.P. (the Partnership). This transaction was originally announced on May 17, 2005. In connection with the close of the transaction, the Partnership was renamed EPCOR Power L.P. Units of the Partnership (TSX: TPL.UN) will continue to trade on the Toronto Stock Exchange, with the new name and symbol (TSX: EP.UN) expected to take effect on September 6, 2005.
EPCOR's acquisition includes:
- Approximately 14.5 million units of the Partnership, representing approximately 30.6 per cent of the outstanding units;
- 100 per cent ownership of the General Partner of the Partnership; and
- Management and operations agreements governing the ongoing operation of the Partnership's power generation assets.
Four officers from EPCOR, Donald J. Lowry, Brian T. Vaasjo, Mark D. Wiltzen, and Douglas R. Topping, will replace TransCanada officers as directors of EPCOR Power L.P.'s General Partner. They join Brian A. Felesky, Allen R. Hagerman, and Eric Hobson, who are continuing as independent directors on the board. Mr. Lowry will serve as Chairman of the General Partner, Mr. Vaasjo will serve as its President, and Stuart Lee will serve as its Chief Financial Officer.
Approximately 100 TransCanada employees who provide operations and maintenance services to the Partnership, have become EPCOR employees, effective September 1st, and will continue to provide operations and maintenance services in respect of the assets owned by the Partnership. A transition services agreement is also in place between EPCOR and TransCanada during the integration of the operations to EPCOR.
Previously announced in May of this year, the transaction received all required approvals and was unanimously approved by the Partnership's directors. In connection with the transaction, the Partnership Agreement governing the Partnership has been amended to reflect the change of sponsor from TransCanada to EPCOR.
"The partnership's independent directors welcome EPCOR as the new sponsor and Manager, and its commitment to maintaining the strategic business approach that made TransCanada Power, L.P. one of the premier power partnerships in North America," said Lead Director Eric Hobson. "A proven and experienced operator, EPCOR has indicated that it can bring to the Partnership new growth opportunities that will be consistent with the risk profiles of the Partnership's other assets. EPCOR has provided a 'right of first look' for the Partnership on third party operating acquisitions and is clearly willing to commit substantial resources directed at growth and stability."
"The Partnership continues its operations on a business as usual basis, focusing on providing unitholders with stable and predictable cash flows," said Brian Vaasjo, President of EPCOR Power L.P. "Power generation is a core business of EPCOR's and one in which the company has over 100 years of experience in safe, reliable and profitable operations. The Partnership and EPCOR enjoy excellent alignment. EPCOR currently owns an inventory of power generation assets that possess characteristics that would make them attractive acquisitions for the Partnership."
Canaccord Capital Corporation acted as exclusive financial advisor to the Partnership's Independent Directors Committee in association with the transaction.
The new corporate offices of EPCOR Power L.P. are located at:
EPCOR Power L.P.
EPCOR Centre
10065 Jasper Avenue
Edmonton, Alberta T5J 3B1
The new web address for EPCOR Power L.P. is epcorpowerlp.ca
FORWARD-LOOKING INFORMATION
Certain information in this document is forward-looking and is subject to important risks and uncertainties. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or event to differ materially from current expectations include, among other things, the ability of EPCOR Power L.P. to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory environment, competitive factors in the power industry sector, and the prevailing economic conditions in North America. For additional information on these and other factors, see the reports filed by EPCOR Power L.P. with Canadian securities regulators. EPCOR Power L.P. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
EPCOR Media Inquiries: Doug Downs (780) 412-3780
EPCOR Power L.P. Investor Information: Randy Mah (866) 896-4636
TransCanada Media Inquiries: Kurt Kadatz/Hejdi Feick (403) 920-7859/(800) 608-7859
TransCanada Investor & Analyst Inquiries: David Moneta (403) 920-7911
Prior to September 1, 2005, financial reports, news releases, investor presentations were issued by TransCanada Power, L.P.. Following acquisition of TransCanada's interest by EPCOR Utilities Inc., the Partnership was renamed EPCOR Power L.P.