Capital Power Corp T.CPX

Alternate Symbol(s): T.CPX.P.A | T.CPX.P.C | T.CPX.P.E | T.CPX.P.K | CPRHF | CPXWF | CPWPF

Utilities Utilities - Independent Power Producers

Capital Power Corporation is a growth-oriented power producer company. The Company develops, acquires, owns, and operates renewable and thermal power generation facilities and manages its related electricity and natural gas portfolios. It is involved in the operation of electrical generation facilities within Canada and in the United States. The Company has approximately 9,300 megawatts (MW) of power generation capacity at 32 facilities across North America. Its projects under construction include over 140 MW of renewable generation capacity and 512 MW of incremental natural gas combined cycle capacity from the repowering of Genesee 1 and 2 in Alberta, and over 350 MW of natural gas and battery energy storage systems in Ontario and approximately 70 MW of solar capacity in North Carolina in advanced development. Its La Paloma facility is located in Kern County, California. The Company also has a Harquahala natural gas generation facility in Arizona.

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Post by retiredcfon Jan 15, 2024 9:20am

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Post# 35826628

RBC

January 15, 2024

Capital Power Corp

Quick Take: Enters into an agreement with OPG to assess the deployment of SMRs in Alberta

TSX: CPX | CAD 36.17 | Sector Perform | Price Target CAD 45.00

Sentiment: Neutral

Our view

• Given the early-stage of this assessment and with the likelihood that there will be limited near-term capital investments during this assessment stage, we do not expect this announcement to have a material impact on Capital Power's share price.

• Directionally, the themes associated with this announcement broadly align with those discussed in our RBC ImagineTM report, titled "Climate of change for nuclear energy". In this report, we highlighted that nuclear energy generation capacity is well- positioned to grow in North America and Europe over the long term, supporting nations' energy transition objectives by being a source of reliable and non-emitting baseload power for decades as well as being an industry that nations can develop to deliver stronger economic growth and relationships. We also noted that SMRs (small modular reactors) can offer real solutions (particularly given the downside risks associated with large-scale nuclear new builds) and that continued political and institutional support are necessary to maintain the technology's momentum. Please click here for more of our thoughts of the way forward for nuclear energy.

Details

• Capital Power has entered into an agreement with Ontario Power Generation (OPG) to jointly assess the development and deployment of grid-scale SMRs in Alberta.

Through the agreement, the two companies will examine the feasibility of developing SMRs in Alberta, including possible ownership and operating structures.
Capital Power and OPG will complete the feasibility assessment within two years, while continuing to work on the next stages of SMR development.