News Release

Capstone Infrastructure Corporation Provides 2013 Outlook and Adds New Power Development Capabilities

TORONTO, ONTARIO (December 12, 2012) – Capstone Infrastructure Corporation (TSX: CSE; CSE.DB.A; CSE.PR.A – the “Corporation”) today provided its financial outlook for fiscal 2013 and announced the establishment of a new group focused on sourcing, developing and pursuing power projects in Canada and the United States.

“Capstone has a strong, diversified portfolio that is performing in line with expectations and represents a solid platform from which to grow.  This platform is complemented by a strengthened balance sheet and a lower payout ratio, which provides us with flexibility to pursue growth opportunities,” said Michael Bernstein, President and Chief Executive Officer.  “In the year ahead, we expect solid performance from our current portfolio and increased business development activity as we focus on building the scale and value of our company through the acquisition of operating infrastructure businesses as well as development-stage power projects.”

Outlook for 20131


The Corporation expects continuing stable performance from its portfolio of power generation and utilities businesses and a return to a lower effective gas transportation toll in 2013 to transport gas to the Cardinal gas cogeneration facility (“Cardinal”).  Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) in 2013 is anticipated to be approximately $110 million to $120 million, which, while consistent with the outlook provided for 2012, represents an approximately $6 million increase in Adjusted EBITDA over 2012 on a pro forma basis had the Corporation held its 50% interest in Bristol Water for the full 2012 year.  The Corporation’s 2013 outlook reflects the following assumptions:


  • Holding a 50% interest in Bristol Water for the full year following a partial sale of the Corporation’s previously 70% interest in May 2012;
  • Increased business development activity compared with 2012, which is expected to result in higher corporate costs consistent with historical levels; and
  • Modest overhead costs related to the Corporation’s new power development activities.

The Corporation continues to negotiate with the Ontario Power Authority (“OPA”) to achieve a fair contract outcome for Cardinal that balances value for Ontario ratepayers, value Cardinal’s industrial partner and value for the Corporation’s shareholders.  While negotiations are ongoing, the Corporation no longer expects the process to conclude in 2012.  Cardinal’s current power purchase agreement expires at the end of 2014.

Capstone Power Development

The Corporation today also announced the formation of a new power development subsidiary, Capstone Power Development, based in Vancouver, British Columbia under the leadership of Michael Chapin. 

Mr. Chapin is an accomplished energy professional with more than 30 years of experience in the North American power industry and most recently co-founded GreenWing Energy Management Ltd.  Over his career, Mr. Chapin has led the development and acquisition of more than 3 gigawatts of clean energy projects (wind, solar, hydro and natural gas) in North America, including the 100 megawatt (“MW”) St. Leon Wind Energy Project in Manitoba, the 187.5 MW High Plains Wind Energy Project in Wyoming, and the sale of a 1,400 MW portfolio of wind projects located in California, Nevada, Colorado, New Mexico and North Dakota. Mr. Chapin has also advised a number of industry-leading energy developers, including Tenaska, El Paso Corporation, AES Corp. and Cogentrix, and has held senior positions at a number of major utilities, including Vice President of B.C. Gas Inc.’s non-regulated subsidiary and as a member of the team that started CU Power International (now Atco Power).  Mr. Chapin holds a Bachelor of Applied Science degree in Electrical Engineering from the University of British Columbia. 

“We are delighted to launch a new development initiative with Michael, who is a seasoned professional with a proven record of successfully developing power projects, building partnerships and creating value for shareholders,” said Mr. Bernstein. “Michael’s efforts will focus on developing and acquiring renewable and clean electricity generation projects in western Canada and the United States where there are significant greenfield and brownfield project opportunities.”

1 See Notice to Readers

About Capstone Infrastructure Corporation

Capstone Infrastructure Corporation’s mission is to build and responsibly manage a high quality portfolio of infrastructure businesses in Canada and internationally in order to deliver a superior total return to shareholders by providing reliable income and capital appreciation.  The Corporation’s portfolio currently includes investments in gas cogeneration, wind, hydro, biomass and solar power generating facilities, representing approximately 370 MW of installed capacity, a 33.3% interest in a district heating business in Sweden, and a 50% interest in a regulated water utility in the United Kingdom.  Please visit for more information.

Notice to Readers

Certain of the statements contained within this document are forward-looking and reflect management’s expectations regarding the future growth, results of operations, performance and business of the Corporation based on information currently available to the Corporation. Forward-looking statements and financial outlook are provided for the purpose of presenting information about management’s current expectations and plans relating to the future and readers are cautioned that such statements and financial outlook may not be appropriate for other purposes. These statements and financial outlook use forward-looking words, such as “anticipate”, “continue”, “could”, “expect”, “may”, “will”, “estimate”, “plan”, “believe” or other similar words, and include, among other things, forward-looking statements concerning the Corporations new dividend policy, the outlook for the Corporation's power infrastructure facilities; Swedish district heating business ("Värmevärden") and the UK water utility ("Bristol Water").  These statements and financial outlook are subject to known and unknown risks and uncertainties that may cause actual results or events to differ materially from those expressed or implied by such statements and financial outlook and, accordingly, should not be read as guarantees of future performance or results. The forward-looking statements and financial outlook within this document are based on information currently available and what the Corporation currently believes are reasonable assumptions, including the material assumptions set out in the management’s discussion and analysis of the results of operations and the financial condition of the Corporation (“MD&A”) for the year ended December 31, 2011 under the heading “Results of Operations”, as updated in subsequently filed interim MD&A of the Corporation (such documents are available under the Corporation’s profile on

Other material factors or assumptions that were applied in formulating the forward-looking statements and financial outlook contained herein include or relate to the following: that the business and economic conditions affecting the Corporation’s operations will continue substantially in their current state, including, with respect to industry conditions, general levels of economic activity, regulations, weather, taxes and interest rates; that the Corporation’s power businesses experience normal wind, hydrology, solar irradiation and ambient temperatures and humidity levels; the contribution from Bristol Water reflecting the Corporation’s reduced ownership interest as at May 10, 2012; an effective TransCanada Pipelines (“TCPL”) gas transportation toll of approximately $1.76 per gigajoule in 2013; no material change in the level of gas mitigation revenue earned by the Cardinal facility; that there will be no unplanned material changes to the Corporation’s facilities, equipment or contractual arrangements, no unforeseen changes in the legislative, regulatory and operating framework for the Corporation’s businesses, no delays in obtaining required approvals, no unforeseen changes in rate orders or rate structures for the Corporation’s power infrastructure facilities, Värmevärden or Bristol Water, no unfavourable changes in environmental regulation and no significant event occurring outside the ordinary course of business; that there will be no further amendments by the Ontario government to the regulations governing the mechanism for calculating the Global Adjustment (which affects the calculation of the price escalators under each power purchase agreement (a “PPA”) for the Cardinal facility and the hydro power facilities located in Ontario); the accounting treatment for Bristol Water’s business under International Financial Reporting Standards, particularly with respect to accounting for maintenance capital expenditures; the amount and timing of capital expenditures by Bristol Water; no material change to the Swedish Krona to Canadian dollar exchange rate; no material change to the UK pound sterling to Canadian dollar exchange rate; and that Bristol Water will operate and perform in a manner consistent with the regulatory assumptions underlying its current asset management plan, including, among others: real and inflationary increases in Bristol Water’s revenue, Bristol Water’s expenses increasing in line with inflation, and capital investment, leakage, customer service standards and asset serviceability targets being achieved.

Although the Corporation believes that it has a reasonable basis for the expectations reflected in these forward-looking statements and financial outlook, actual results may differ from those suggested by the forward-looking statements and financial outlook for various reasons, including risks related to: variability and payments of dividends on the Corporation’s common shares, which are not guaranteed; volatile market price for the Corporation’s securities; availability of debt and equity financing; default under credit agreements; credit risk, prior ranking indebtedness and absence of covenant protection for holders of the Corporation’s convertible debentures; dependence on subsidiaries and investees; acquisitions; geographic concentration and non-diversification; foreign exchange risk; reliance on key personnel; insurance; shareholder dilution; derivatives risks; changes in legislation and administrative policy; competition; private companies and illiquid securities; operational performance; PPAs; fuel costs and supply; contract performance; Amherstburg Solar Park technology risk; land tenure and related rights; environmental, health and safety regime; regulatory regime and permits; force majeure; influence of the UK water regulator (“Ofwat”) price determinations; failure of Bristol Water to deliver capital investment programs; failure of Bristol Water to deliver water leakage target; Ofwat’s introduction of the Service Incentive Mechanism and the serviceability assessment; economic environment, inflation and capital market conditions; pension plan obligations; operational risks; competition; default under Bristol Water’s artesian loans, bonds, debentures and credit facility; seasonality and climate change; labour relations; special administration; general risks inherent in the district heating sector; industrial and residential contracts; default under Värmevärden’s bonds; and minority interest.  Further information regarding these risk factors is contained in the Corporation’s Annual Information Form (which is available under the Corporation’s profile on

The assumptions, risks and uncertainties described above are not exhaustive and other events and risk factors could cause actual results to differ materially from the results and events discussed in the forward-looking statements and financial outlook. The forward-looking statements and financial outlook within this document reflect current expectations of the Corporation as at the date of this document and speak only as at the date of this document. Except as may be required by applicable law, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements or financial outlook.



For further information, please contact:

Aaron Boles
Vice President, Communications and Investor Relations
Tel: (416) 649-1325