EPCOR Power L.P. announces a three-year extension and amendments to the energy services agreement for its Kenilworth plant
EDMONTON, Alberta - July 21, 2008 - EPCOR Power L.P. (TSX: EP.UN) (the Partnership), announced today that it has amended and extended the power purchase arrangement and steam purchase agreement (energy services agreement) with Schering Corporation (Schering), a subsidiary of Schering-Plough Corporation, through to July 2012 for its Kenilworth plant. The Kenilworth facility currently sells electrical energy and steam to Schering under the energy services agreement that was due to expire in June 2009. The amendments which include revised pricing are effective July 2008.
"We are pleased to have reached an agreement with Schering to extend the term of the energy services agreement for an additional three years on our Kenilworth facility," said Brian Vaasjo, President of EPCOR Power Services Limited, the General Partner of the Partnership. "Execution of the contract extension is part of the Partnership's plan for providing unitholders with long-term stability and sustainable cash distributions. Under the terms of the revised agreement, future operating margins are expected to be similar to current levels and include amendments that eliminate early termination provisions and include the sharing of potential cost saving benefits for both parties."
The Kenilworth facility, acquired by the Partnership in 2006, is a natural gas-fired combined heat and power plant located in the state of New Jersey.
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 per cent interest in a power generation asset in Washington State, and a 15.4 per cent interest in Primary Energy Recycling Holdings LLC (PERH). The Partnership's assets have a total net generating capacity of 1,287 megawatts and more than three 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: http://www.epcorpowerlp.ca/.
Forward-looking Information
Certain information in this news release is forward-looking and related to anticipated financial performance, events and strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target", and "expect" or similar words suggest future outcomes. By their nature, such statements are subject to significant risks, assumptions and uncertainties, which could cause the Partnership's actual results and experience to be materially different than the anticipated results. Such risks, assumptions and uncertainties include, but are not limited to, the ability of the Partnership to successfully integrate and realize the financial benefits of acquisitions, the ability of the Partnership to implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, plant availability, waste heat availability and water flows, regulatory and government decisions, the renewal and terms of power purchase contracts, competitive factors in the power industry, the current and future economic conditions in North America and the performance of contractors and suppliers.
Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Except as required by law, the Partnership disclaims any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
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