TORONTO, ONTARIO–(Marketwired – March 13, 2015) – Capstone Infrastructure Corporation (TSX:CSE)(TSX:CSE.DB.A)(TSX:CSE.PR.A)(TSX:CPW.DB) announced today that the Ontario Superior Court of Justice has determined that the Ontario Electricity Financial Corporation (OEFC) has not properly calculated the price paid for electricity produced under its power purchase agreements (PPAs) with Capstone and a number of other power producers in Ontario.
In a decision dated March 12, 2015, the Court ruled that the methodology that the OEFC used from January 1, 2011 onward to calculate payments under Capstone’s PPAs, and those of other producers, did not comply with the terms of those PPAs. The decision further requires the OEFC to revert to its pre-2011 methodology for calculating payments and to pay producers the difference between the payments calculated by the OEFC since 2011 and the amount of the payments they would have received using the pre-2011 methodology, plus interest and costs.
The OEFC has until April 13, 2015 to appeal this decision. If the decision is not appealed, or if it is upheld following any appeal, Capstone estimates that this will result in a receipt of approximately $25 million representing retroactive adjustments for revenue claimed from the OEFC. It is also expected that the future price paid for electricity at Capstone’s Wawatay and Dryden hydro facilities will be calculated in accordance with the original pre-2011 methodology in their respective PPAs.
About Capstone Infrastructure Corporation
Capstone’s mission is to provide investors with an attractive total return from responsibly managed long-term investments in core infrastructure in Canada and internationally. The company’s strategy is to develop, acquire and manage a portfolio of high quality utilities, power and transportation businesses, and public-private partnerships that operate in a regulated or contractually-defined environment and generate stable cash flow. Capstone currently has investments in utilities businesses in Europe and owns, operates and develops thermal and renewable power generation facilities in Canada with a total installed capacity of net 461 megawatts. Please visit www.capstoneinfrastructure.com for more information.