Capstone Infrastructure Corporation
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Capstone Infrastructure Corporation

April 10, 2015 17:19 ET

Capstone Infrastructure Corporation Prepares for Appeal in Litigation with Ontario Electricity Financial Corporation

TORONTO, ONTARIO--(Marketwired - April 10, 2015) - Capstone Infrastructure Corporation (TSX:CSE)(TSX:CSE.DB.A)(TSX:CSE.PR.A)(TSX:CPW.DB) acknowledged today that the Ontario Electricity Financial Corporation (OEFC) has served a Notice of Appeal in respect of the March 12, 2015 decision from the Ontario Superior Court of Justice. That decision determined, among other findings, that the OEFC did not properly calculate the price paid and payable for electricity produced under its power purchase agreements (PPAs) with Capstone and a number of other power producers in Ontario.

In a statement issued on March 13, 2015, Capstone estimated that the Court's decision, if not appealed or if upheld following any appeal, would result in a net receipt of approximately $25 million representing retroactive adjustments for revenue claimed from the OEFC. The statement further said that the future price paid for electricity at Capstone's Wawatay and Dryden hydro facilities was expected to be calculated in accordance with the original pre-2011 methodology in their respective PPAs.

Capstone intends to defend the appeal.

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.

Contact Information

  • Capstone Infrastructure Corporation
    Aaron Boles
    Senior Vice President, Communications and Investor Relations
    (416) 649-1325
    aboles@capstoneinfra.com