Re: Valuation of Canadian Generation Assets
Looks like the value has just gone up quite a bit.
Electricity Industry Welcomes Prospect of Improved Predictability
OTTAWA, June 24 /CNW Telbec/ - On June 23, 2010, the Honourable Jim Prentice, Minister of the Environment, announced that the Government of Canada will move forward with regulations to address greenhouse gas emissions from coal-fired electricity generation.
The proposed regulations are scheduled to come into effect on July 1, 2015 and are expected to reduce greenhouse gas emissions by about 15 MT.
The electricity sector appreciates the federal government's recognition that Canada's coal-fired generating facilities are assets that have long lives and serve as an important part of the country's electricity generation mix. The industry welcomes the prospect of improved predictability in government decision-making now that the policy framework is established, and looks forward to working with the government in developing these regulations.
"This is good news for all Canadians. These regulations wil mean real reductions in greenhouse gases, nitrogen oxide, sulphur dioxide, and particulate matter," said Pierre Guimond, President and CEO of the Canadian Electricity Association. "While the economic downturn is behind us, the electricity industry must plan ahead to meet the challenges of tomorrow. Climate change mitigation and adaptation will be one of these key challenges, especially while meeting anticipated long-term growth in Canada's electricity demand. Working in cooperation with government at all levels will ensure we meet this important mandate for the economic and social well being of all Canadians."
About the CEA
Canadian Electricity Association (CEA) members generate, transmit and distribute electrical energy to industrial, commercial, residential and institutional customers across Canada every day. From vertically integrated electric utilities, to power marketers, to the manufacturers and suppliers of materials, technology and services that keep the industry running smoothly - all are represented by this national industry association. Participation in Sustainable Electricity is a condition of CEA membership.
For further information: Francis Bradley, Vice President, tel: 613-230-5027, cel: 613-218-6548, email: bradley@electricity.ca; Louisa Hood, Director, Communications, tel: 613-688-2954, cel: 613-513-6990, email: hood@electricity.ca
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Also found this blurb on Cap & Trade which will affect their entire portfolio of assets (for valuation purposes).
Carbon emission regulations are imminent in Canada. Regulatory legislation to constrain carbon emissions are emerging on provincial, regional and national levels across Canada. In addition, world leaders are being pressured to make real and measurable commitments to combat climate change during the United Nations Climate Change Conference in Copenhagen.
Recent greenhouse gas emission reporting regulations have passed legislation in both Ontario and British Columbia, announcing annual reporting requirements to begin January 2010. It can be said that these regulations are supporting the development and implementation of a cap and trade program nationally.
United States and Canadian cross-border alignment is essential for success. As carbon markets develop businesses need to evaluate the opportunities and challenges facing carbon market participation.
AI
