CALGARY, ALBERTA–(Marketwire – Nov. 23, 2012) – Maxim Power Corp. (MXG.TO) (“MAXIM” or the “Corporation”) announced on November 20, 2012 that it entered into a 25 MW, one-year firm financial swap agreement with an undisclosed third party.
The financial swap agreement provides an additional 25 MW of power to MAXIM at a fixed price of $58.80 per MWh during 2013. MAXIM views the current forward prices for the 2013 Alberta power market as a favorable entry point considering the province’s current supply/demand fundamentals and anticipated volatility of power prices.
MAXIM will factor this firm financial power position into the optimization of its overall Alberta generation portfolio. The 25 MW firm financial Alberta power agreement adds to MAXIM’s existing generating capacity of 156 MW, providing MAXIM with power generation totaling 181 MW for 2013 through two physical power plants and this financial swap. During 2013 MAXIM anticipates that it will realize value from this portfolio through a combination of offsetting firm financial power agreements, unit-contingent power sales agreements, and selling electricity at spot Alberta electricity prices.