Capital Power Corporation (TSX: CPX) (Capital Power or the Company) announced today (6/23) that it is moving forward with the third phase of the Whitla Wind facility ("Whitla Wind 3") that will add 54 megawatts (MW) in late 2021. The Whitla Wind facility is located in the County of Forty Mile in south eastern Alberta.
Capital Power has initiated the permitting process for Whitla Wind 3 with the Alberta Electric System Operator (AESO) and anticipates filing its Alberta Utilities Commission (AUC) application this summer. Subject to regulatory approvals, construction of Whitla Wind 3, with an estimated capital cost of $92 million, is expected to begin in the second quarter of 2021 and will be constructed concurrently with the Whitla Wind 2 (97 MW) project to capture synergies. Construction of both projects is expected to be completed by the end of 2021. Whitla Wind 3 will consist of 15 Vestas V-136 3.6 MW wind turbines, the same technology in operation at Whitla Wind 1 and to be installed for Whitla Wind 2.
"Once all three phases of the Whitla Wind facility are completed by the end of 2021, it will be Alberta's largest wind facility with 353 megawatts of generation capacity," said Brian Vaasjo, President and CEO of Capital Power.
Whitla Wind 3 will generate carbon credits that can be used to hedge against Capital Power's carbon compliance costs from its Alberta thermal generation facilities. Capital Power is in active discussions with commercial and industrial customers for renewable offtake contracts for Whitla Wind 2 and will now include Whitla Wind 3.
Phase one of Whitla Wind (202 MW) began commercial operations in December 2019 and was one of four successful wind projects that was awarded a 20-year contract by AESO in the first round of the Renewable Electricity Program.
Forward-looking information
Certain information in this news release is forward-looking information within the meaning of Canadian securities laws as it relates to anticipated financial or operating performance, events or strategies. When used in this context, words such as "anticipate", "believe", "continue", "estimate", "plan", "intend", "expect", "target" and "will" or similar words suggest future outcomes. By their nature, such statements are subject to significant risks, assumptions and uncertainties, which could cause the Company's actual results and experience to be materially different than the anticipated results. Forward-looking information or statements included in this news release are provided to inform the Company's shareholders and potential investors about management's assessment of the Company's future plans and operations. This information may not be appropriate for other purposes.
Material forward-looking information in this press release includes expectations regarding: (i) the estimated capital costs of Whitla Wind 3, and (ii) the expected project timelines, including the completion date for construction of Whitla Wind 2 and 3. These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements relate to: (i) construction performance and availability of required labour and resources; and (ii) timing of the permitting process.
Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company's expectations. Such material risks and uncertainties are: (i) changes in general economic and competitive conditions; and (ii) timing and costs of regulatory approvals and construction. See Risk Factors in the Company's 2019 Management's Discussion and Analysis for further discussion of these and other risks.
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the specified approval date. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
About Capital Power
Capital Power (TSX: CPX) is a growth-oriented North American power producer headquartered in Edmonton, Alberta. The company develops, acquires, owns, and operates power generation facilities using a variety of energy sources. Capital Power owns over 6,400 megawatts (MW) of power generation capacity at 28 facilities across North America. Approximately 150 MW of owned generation capacity is in advanced development in Alberta.
