TORONTO, ONTARIO--(Marketwired - April 20, 2016) - Capstone Infrastructure Corporation (TSX:CSE) (TSX:CSE.DB.A) (TSX:CSE.PR.A) (TSX:CPW.DB) acknowledges that at the close of business yesterday, April 19, 2016, the Court of Appeal for Ontario released its judgment dismissing an appeal by the Ontario Electricity Financial Corporation (OEFC) of a March 12, 2015 decision of the Ontario Superior Court of Justice.
This earlier decision determined, among other findings, that OEFC did not properly calculate the price paid for electricity generated under its power purchase agreements (PPAs) with Capstone and a number of other power producers in Ontario.
The Superior Court's decision, which has now been upheld by the Court of Appeal, further requires OEFC to revert to its pre-2011 methodology for calculating payments under the PPAs and to pay producers, including Capstone, the difference between the payments calculated by OEFC since 2011 and the amount of the payments they would have received using the pre-2011 methodology, plus interest and costs. Capstone estimates that this will result in receipt of approximately $25 million representing retroactive adjustments for revenue claimed from OEFC. Going forward, OEFC will also be required to calculate and pay for electricity generated at Capstone's Wawatay and Dryden hydro facilities in accordance with the original pre-2011 methodology in their respective PPAs.
OEFC has 60 days to seek leave to appeal the decision to the Supreme Court of Canada.
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 473 megawatts. Please visit www.capstoneinfrastructure.com for more information.