Edmonton Construction 9 (2008-08)

[CMD UW]

^ the west and north elevations on Icon T2 worry me. It could go from an overall 6 to a 5...

[mick]

It seems some here seem to be of the opinion that the architecture is nothing but an adventure in subjective styling preferences. This idea of "to each his own" and architectural snobbery suggests there are no objective criteria by which to judge architecture and design. To me that is like saying there is no way to objectively distinguish between good and bad hockey teams. There are many styles of hockey that may lead to a winning team (e.g. 70's flyers vs. 80 oilers). Likewise, there are many styles a losing team can use. One can certainly say that in choosing which winning or losing style you prefer you are exercising a subjective judgement. However, no one could not really argue that the current iteration of the oilers are objectively better than the 80s oilers. Similarly, I'm sure writers will tell you that good writing comes in many styles but they will also tell you that there is an objective difference between good and bad writing.

I view architecture and design in a similar way: there are certainly many ways to do good architecture and it is up to each individual to choose the style they prefer. However, just like the current oilers are not what the 80s oilers were, and just like this post is not exactly hemingway, neither are the cheap and thoughtless 70s style concrete bunker office buildings or the 60s slab apartment buildings or the perigine points of the world in the same league as some of Gaudy's whimsical buildings or some of Mies' elegant modernism or some of Foster's contemporary gems or the new cecil place or the edmonton research park building. Lets not kid ourselves, there are objective elements that differentiate good and bad architecture. I'm not educated enough to list what they are (I'm sure others are) and I'm sure they can be mixed and matched in any number of combinations. Nonetheless, to deny their existence is to succumb to apathy and it is not elitist or snobby to say so. Rant off.

[Shodan]

Epcor splits into two
Would create biggest publicly traded company in Edmonton

Dave Cooper, with files from Gordon Kent
The Edmonton Journal

Saturday, May 09, 2009

City-owned Epcor Utilities is spinning off all its electrical power generation assets into a new public company named Capital Power, a firm that aims to become a major player in the North American energy business.

Headquartered in Edmonton and forbidden from relocating -- no matter who eventually owns it -- Capital Power could begin to issue shares this summer, earning Epcor an initial $500 million for about 20 to 25 per cent of its holdings.

"Power generation has become a big boys' game, and we need access to capital just like our competitors," said Epcor president and CEO Don Lowry, who will remain in his current post. "Capital Power will be able to raise cash from equity sales and issue debt, and will be a completely independent company.

"Capital Power will step right into Epcor's shoes," he said, adding the move is simply "a matter of refinancing our business through the sale of assets."

It would be the largest publicly traded company based in Edmonton.

Epcor will retain ownership of all water, waste-water and power distribution -- all rate-regulated services. Capital Power will deal only with the supply of electricity into the provincial grid, which is unregulated. Customers will not see any change in rates or service.

The decision was approved by city council in a closed meeting on April 17 after councillors heard from their own experts, and after a passionate debate, said Lowry.

"There was a very strong majority in favour of this," he said. "Epcor has traded units under a trust, and if we had gone to a public forum to decide this, it would command us to expose all of our information of value, to cost to strategy, it would so imperil our ability to compete at some point (that) could drive down the value of the corporation."

Capital Power will have an independent board of directors when it begins, with Epcor supplying a minority of members, even though it will own 75 to 80 per cent of the shares.

About 1,000 of Epcor's current 3,000 employees will join Capital Power and be housed in the Epcor Tower now under construction. Epcor will help set up the new firm, but will have no link to Capital Power by the end of 2009.

Andre Plourde, chairman of the University of Alberta's department of economics, said he was not surprised by the move.

"If they want to get into that, they have to adopt a corporate structure which looks like the private sector, like the TransAltas and Atcos," he said.

The money coming from the sale of Capital Power shares will allow Epcor to expand its water and waste-water business across North America, and do more in Edmonton.

"I think we have been starved for cash in the water distribution area," Lowry said. "Broken water mains should not occur at the rates they do in Edmonton."

Epcor will use cash from Capital Power to fund its water and waste-water projects, and will only raise cash when it needs to. He expects Epcor will continue spending about $300 million a year on capital projects.

Within five years, Lowry expects Capital Power to have more projects all over North America, employ more than 1,200 people in Edmonton, and increase its electrical output from the current 3,300 megawatts to as much as 6,000 megawatts.

He thinks Epcor will still hold more than half of Capital Power's shares, and will provide the city with an annual dividend of $150 million, up from the current $130 million.

Lowry said the decision to spin off the electricity business was obvious.

"Power is profitable, all the growth in earnings is coming from this area. It is a jewel, but it is like having a car with a big engine -- it needs a lot of capital to keep it running, and we couldn't issue shares like our competitors.

"We simply couldn't fund it. We can't borrow any more for it. If I kept borrowing to fund power generation, you would start to see the financial ratios move us out of BBBplus (the top rating) down to BBB, and I don't want to go there."

The move has been under consideration since May 2008, board chairman Hugh Bolton told a news conference.

"Epcor and the city realized we were indeed at a crossroads. Our ability to finance further growth internally was in question," he said.

"We couldn't fund our power business and our water business together ... to take on the projects that really matter, you require vast amounts of money that's patient."

The company retained consultants Booz Allen Hamilton, which confirmed Epcor couldn't continue to fund everything, so officials asked the city last September for permission to assess options, board member Michael Percy said.

The board unanimously recommended creating Capital Power.

A so-called "golden share" gives the city and Epcor vetoes over any attempt to move the head office, and requires the chief executive officer, chief financial officer and senior vice-presidents to be based in Edmonton, Coun. Kim Krushell said.

The company must also keep at least 350 employees in Edmonton for the next 25 years, she said.

[email protected]
© The Edmonton Journal 2009

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CanWest Interactive, a division of CanWest MediaWorks Publications, Inc.. All rights reserved.

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[Shodan]

There's a healthy appetite for shares in Capital Power
New firm will be able to tap into equity markets

Gary Lamphier
The Edmonton Journal

Saturday, May 09, 2009

North America's electric power-generating industry is dominated by big players, with pockets as deep as the Grand Canyon, and an ability to access billions of dollars in debt or equity capital to fund their operations.

Provincially owned Crown corporations like B.C. Hydro, Ontario

Hydro and Quebec Hydro run huge budgets with massive capital spending programs. Ditto for major U.S. power producers like Duke Power and Florida Power & Light, which trade on the New York Stock Exchange.

In an industry filled with big fish, Epcor Utilities is a small fry. So on Friday it did what it had to do.

While some taxpayers will cry foul at the secretive way the deal was hatched -- Edmonton city council gave it a thumbs-up in mid-April,

behind closed doors -- Epcor has taken a key step toward joining the power industry's big leagues.

The city-owned utility unveiled plans to create a new publicly traded subsidiary -- Capital Power Corp. -- that will assume ownership of all of Epcor's sprawling $5-billion portfolio of electric power generating assets.

More importantly, Capital Power will be able to do something its bureaucratic, parochial, politically handcuffed parent has long been unable to do.

By listing Capital Power's shares on the Toronto Stock Exchange, the new firm will be able to tap the equity markets to fund future growth, while financing the huge capital investments that lie ahead (particularly for coal-fired power producers) in an increasingly carbon-constrained world.

Capital Power's proposed $500-million initial public offering of common shares, expected to be completed in July, will immediately make it one of the largest electric power utility players on the TSX. It will also be the largest IPO in Canada since 2007.

With no other assets besides its network of power-generating plants, Capital Power will be the second-largest pure play power producer on the Toronto exchange, behind only Calgary-based giant TransAlta Corp.

Overnight, Capital Power will zoom to the top of Edmonton's corporate ranks. Stantec Inc., the Edmonton-based engineering and infrastructure design consulting giant, is currently the largest publicly traded firm in the city, with a market cap of about $1.2 billion.

Capital Power will top that, once it goes public. Based on the size of its IPO, Capital Power's implied initial stock market value is expected to be in the $2-billion range, or about half the size of TransAlta.

The new firm, which by corporate edict must remain headquartered in Edmonton, will have interests in 31 power plants across North America, including a wide range of coal, natural gas, hydro and wind-power generating facilities.

Capital Power will also assume ownership of Epcor Utilities' current 30.6-per-cent stake in Epcor Power LP, a struggling, capital-constrained TSX-listed company that has stakes in 20 smaller Canadian and U.S. power plants.

In total, Capital Power's portfolio will boast 3,300 megawatts of generating power. Brian Vaasjo, who currently heads Epcor Power LP, will assume the top job at Capital Power, while Don Lowry remains CEO of Epcor Utilities.

Epcor, for its part, will pocket roughly $500 million in proceeds from the IPO, and will generate additional funds in coming years as it gradually reduces its stake in Capital Power over the coming decade.

Epcor will appoint as many as four board members to the Capital Power board, but it won't exercise outright control. Lowry says it's important that Capital Power function as an independent, market-driven entity, so it can maximize value for shareholders -- especially Epcor.

As it grows, the newly created subsidiary is expected to generate a regular stream of dividend income for Epcor, which forked over $130 million in dividends to the city last year. Since 1996, Epcor has generated roughly $1.8 billion of dividends, taxes and other fee income, thus helping to keep a lid on city tax hikes.

Epcor has been on a growth track for years. It has built six power stations in the last seven years, and its current projects include the massive 495-megawatt Keephills 3 coal-fired power plant, west of Edmonton.

Although it is hiving off its power business, Epcor will continue to own and operate its power transmission and distribution networks, along with its water and waste-water treatment facilities.

Since Epcor has ambitious growth plans in the water-treatment market, where it is already one of the biggest players in North America, the monetization of its power generating assets will help fund that growth.

It's a complicated tale, but it essentially comes down to this:

Under the current city ownership structure, Epcor doesn't have access to the billions of dollars in capital it needs to operate and grow its power generating business, while addressing the looming costs of carbon mitigation in a world that seems intent on penalizing coal-fired power producers.

This deal changes that. By spinning off its power assets in a newly created public company, Epcor has created a way to address this looming capital crunch, while ensuring that it -- and the city of Edmonton -- continue to share in the growth of the power business.

"You consider what the capital requirements are of two fairly prosperous and aggressive businesses, and you quickly recognize that it takes a lot of capital," Vaasjo told Reuters news service. "What this does is, it allows both organizations to continue to grow."

Epcor has retained TD Securities Inc. and Goldman Sachs Canada to market the IPO, and a prospectus is expected to be filed with securities regulators next week.

The shares will be listed in Toronto, but not the U.S.

The timing of the offering couldn't be better.

After sagging to a six-year low earlier this year, the TSX's lead index has been on a tear in recent weeks. The S&P/TSX Composite Index soared almost 271 points on Friday, closing at 10,237.99.

The index has jumped 35 per cent since early March. Major indexes in the U.S. have also skyrocketed, as investors bet that the worst of the global recession is already behind, and job losses begin to slow.

The Dow Jones industrial average gained almost 165 points on Friday, to close at 8,574.65, and the S&P 500 Index rose 22 points, to 929.23.

The TSX's utilities sector is still down about 28 per cent versus a year ago, but like other industry groups, it has rebounded lately. It's up about six per cent over the past month.

That should mean there's a ready appetite for Capital Power's shares -- if they're not too richly priced. We'll soon find out.

[email protected]
© The Edmonton Journal 2009

Copyright © 2009 CanWest Interactive, a division of CanWest MediaWorks Publications, Inc.. All rights reserved.
CanWest Interactive, a division of CanWest MediaWorks Publications, Inc.. All rights reserved.

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[Shodan]

EPCOR spinoff company a boon for city: Mandel
Capital Power head office guaranteed to stay in Edmonton

May 9, 2009

By TAMAS VIRAG, SUN MEDIA

EPCOR Utilities Inc., Edmonton's local energy distributor, says it plans to spin off its Canadian and U.S. power generation assets into a new city-based company named Capital Power Corporation that will sell 25% of its business to investors in an initial public offering.

Mayor Stephen Mandel was enthusiastic about the news yesterday morning, saying the move is a positive one that was necessary.

"This is a great day for EPCOR, but I really believe a better day for the city of Edmonton," he said.

"The launch of this company will mean another head office in our city with jobs and related business that will come with it."

EPCOR said Capital Power will hold all the power generation assets and related operations of EPCOR, including its 30.6% interest in EPCOR Power LP. After the deal closes, Capital Power will be responsible for about 3,300 megawatts of power capacity at 31 power plants in Canada and the U.S.

Neither Mandel nor EPCOR board members would go into detail as to how many jobs would be created at the new company's head office, which is guaranteed to stay in Edmonton.

Additionally, Mandel said it would reflect well on the city, whose business image has taken a beating in the recent economic downturn.

"I think it shows the great resilience of the business community in Edmonton," he said. "I think it states an awful lot about our buoyancy (in) the future."

Mandel assured Edmontonians that the move to spin off EPCOR's energy generating arm will have no effect on residents' monthly bills.

He added that the creation of Capital Power was necessitated by EPCOR's growth.

"EPCOR has grown from five power and water plants to more than 50 and both lines of business are continuing to grow and require significant capital," the mayor said.

The move comes as EPCOR Utilities reported its first-quarter net profit rose to $104 million from $68 million last year. Revenues increased to $890 million from $799 million.

[email protected]

http://www.edmontonsun.com/News/Edmonton/2009/05/09/pf-9404141.html

[EdmTrekker]

The Journal is reporting the golden share can at best try to ensure Capital Power remains in Edmonton for 25 years. They are reporting 25 years. That same provision existed in selling ET to AGT...which was then privatized and became Telus and the "provision" obviously became moot - as the HO moved to Burnaby. There is no way to stop a majority shareholder (possible to have...) from gobbling up Capital Power or a "Board" of appointed from minority shareholders from transferring "key" staff anywhere. I am betting key jobs will be out of here before 2012.

We have lost a revenue stream for the City as the stream will now flow to the new shareholders, and 100% of the shares will be made public (70% now with the balance to follow). Without this revenue stream, taxes are going to go WAY up tax time next year as the City needs to offset the loss of the $120M dividend it received this year. That is unless one of you can figure where the City will find cash.

Having said all of this, I am neither against or for the privatization. I just want to see ALL of the facts, impacts and understand where the City will get the cash to replace the lost dividend. As for the likely loss of "head office" jobs, control and decision making will be immediate and reside with the large major or minor shareholders where ever they reside. I suspect these key shareholders will be meeting for cocktails on Bay Street.

[IKAN104]

What makes you say the golden share has an expiry date? The article said they had to keep X number of employees in Edmonton for at least 25 years. It didn't say anything about a time limit on the golden share/location of head office.

[CMD UW]

From what I've read, I think this is a good thing. Meh to the naysayers.

[dansk]

It's a really really good thing for EPCOR and they city. It aways surprises me how some of the people on here the brag about Edmonton so much, think that as soon as a company like this splits from EPCOR they are going to leave town. I thought things had changed in Edmonton? I am slowly realizing after a long time on this forum that people here in Edmonton have not faith in there city. Again, this is a great thing.

[bulliver]

Originally Posted by dansk

I am slowly realizing after a long time on this forum that people here in Edmonton have not faith in there city.

I try, I really do, but it is hard when farmland gets developed at a staggering rate in the burbs for big box stores and single family homes, yet downtown/infill development is at a glacial pace.

[CMD UW]

Originally Posted by bulliver

I try, I really do, but it is hard when farmland gets developed at a staggering rate in the burbs for big box stores and single family homes, yet downtown/infill development is at a glacial pace.

You could say the same thing about farmland, suburbs and big box stores for any other major city in North America. So that's moot. In regards to downtown / infill, yes, it could be better, but at the same time we've made some good progress, particularly over the past 5-years.

5 years ago we had an empty Bay building, the Cecil Hotel was boarded up, no downtown office towers under major reno or new construction, Omega was one of the only new downtown highrise residential buildings under construction, there was no Silk Hat, Bank, 100, Suede, Vintage, one street-level Starbucks in the downtown...and so on...

When you put the list together, it adds up. Yes, the list needs to be longer. But I think when we look back another 5 years from today, we'll be surprised.

[Coldrsx]

Originally Posted by naidoo

Stunning.

Any green roofs in existence/planned in Edmonton?

-stantec's office
-manulife podium


and a few more in design/planning.

[Coldrsx]

Originally Posted by bulliver

I try, I really do, but it is hard when farmland gets developed at a staggering rate in the burbs for big box stores and single family homes, yet downtown/infill development is at a glacial pace.

While i often complain downtown development is slower than it should be, when i moved downtown in 2005 it was a very sad state.... let alone say 2003 when i bought.

We still have a long way to go and i firmly believe we need around 25,000 or about double the current downtown population before we can say we are 'there' but we do keep moving forward.

My biggest issue is with people in our city not assisting in making the heart of their city stronger by choosing to shop, work, or live downtown. Now before you jump all over me on this, I relate it to how many friends or colleagues that tell me how it would be great to live downtown or centrally because there are so many great places to walk to, shop, eat, etc.... but still dont walk the walk. If you like somewhere, go there.

[Coldrsx]

Quest must be on 10 now and Icon II has surpassed the 'Century' and is working on 25.

10 more to go of a disappointing final product.

[naidoo]

I'm sure this has been said many times before, but quick yes/no, was The Icon pre-EDC? Thanks.

[ue]

I don't think so.

Then again I think the initial renderings were released a long time ago, and took a few years to get in the ground - hence it looking outdated now. It's still pretty sad. The residential and commercial additions will be nice, but the design sucks overall.

[bulliver]

Originally Posted by Coldrsx

My biggest issue is with people in our city not assisting in making the heart of their city stronger by choosing to shop, work, or live downtown. Now before you jump all over me on this, I relate it to how many friends or colleagues that tell me how it would be great to live downtown or centrally because there are so many great places to walk to, shop, eat, etc.... but still dont walk the walk. If you like somewhere, go there.

I was downtown this afternoon to take photos, and I was actually surprised how many folks were out and about there on a Sunday afternoon. I lived here from 85-96 when downtown was perhaps at its sadest, and I agree with you and CMD UW that things are certainly changing for the better, but I just wish we could do better than 1 office tower every 20 years.

[ue]

^It's nice to see even the difference between last year and this. Though I was just downtown today (later on) and there was less pedestrian activity. Need more pedestrian activity on a Sunday night IMO.

[deedub35]

Originally Posted by edmontonenthusiast

Though I was just downtown today (later on) and there was less pedestrian activity. Need more pedestrian activity on a Sunday night IMO.

More pedestrian activity EVERY night. But there needs a reason for them to be there though. Perhaps more lounges, diners, coffee places, or shops that aren't closed by 6:00 pm on weeknights and closed all weekend.

[Coldrsx]

Originally Posted by deedub35

More pedestrian activity EVERY night. But there needs a reason for them to be there though. Perhaps more lounges, diners, coffee places, or shops that aren't closed by 6:00 pm on weeknights and closed all weekend.

which is my biggest gripe with some places...

ex. A - free press bistro - closed on weekends now (um hello sat 104st market lunchtime potential)