Committed to transparent and balanced reporting
Global Reporting Initiative
Our 2013 Corporate Responsibility Report follows guidelines defined in the Global Reporting Initiative (GRI), an international standard for corporate responsibility reporting. The GRI guidelines set out the principles and indicators organizations can use to measure and report their environmental, economic, and social performance. More information about the GRI is available at www.globalreporting.org.
A rating
We believe we have achieved an A Level of reporting level under the GRI guidelines (G3.1). There are three grades, with eligibility based on the comprehensiveness of the report (A, B, C) and a "+" designation, indicating that the report has received third-party assurance. We make this self-declaration based on the GRI requirements to meet the "A" level.
About this report
This report provides a detailed overview of Capital Power in 2013, including our successes and challenges. Accurate and balanced information is provided about our people, facilities, and performance. All dollar figures are in Canadian funds.
In 2013, we completed the sale of our three natural-gas assets in New England, U.S. and for the most part they are not included in the 2013 data. Data is footnoted where New England is included.
See Report Scope for further details.
Report scope
The scope of our operations changed significantly in 2013 due to the sale of our three natural-gas assets in New England, U.S. and our $1 billion investment in wind energy - a 1000% increase over a 13-month period from November 2012 to December 2013.
This report includes energy production and environmental performance data from power plants for which Capital Power held the operating permit in 2013, 2012, and 2011 respectively.
Data from each plant represents the entire plant - not our financial share of the operation. This includes Genesee 3, co-owned with TransAlta, and Genesee 1 and 2, whose capacity and output is sold under Alberta Power Purchase Agreement to the Alberta Balancing Pool. Capital Power holds the operating permit for these facilities. Data from Keephills 3, Joffre, and power purchase agreement facilities are not included because we do not hold the operating permits.
One of the challenges in preparing this report was the need to synthesize data from numerous jurisdictions, some of which have different reporting requirements, methods and standards. Where possible, information has been consolidated – for example, greenhouse gas emission data for our facilities in Canada and the United States. In other areas, information is presented separately or from a single jurisdiction.
Carbon dioxide emissions from our landfill gas and biomass facilities are not included in aggregate greenhouse gas emission totals or emission intensity calculations. This approach aligns with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (World Resources Institute and World Business Council for Sustainable Development) (2004).
Reporting intervals
We report annually on our corporate responsibility.
Reporting periods
The report provides data for our previous three full years of operation - 2011, 2012 and 2013. Data for each year is for the 12-month period starting January 1 and ending December 31, respectively.
Process for defining content
This report builds on an extensive process for defining content, including stakeholder consultation, which resulted in guidelines for determining priority topic areas and materiality. We also incorporated feedback from our 2011 and 2012 reports.
Other reporting
Other public disclosures, in particular the 2013 Annual Report, 2013 Annual Information Form, and 2014 Management Proxy Circular, include detailed content that responds to certain GRI indicators. The content is incorporated by cross-reference throughout the report, and the documents are available at www.sedar.com and www.capitalpower.com.
Our Canadian power plants operating above a certain emission-level threshold publicly file annual reports with Canada’s National Pollutant Release Inventory. These reports are available at www.ec.gc.ca/inrp-npri.
Residents living near the Genesee Generating Station receive the bimonthly Genesee Station Connection newsletter, which provides information about the facility’s emission performance and other issues related to plant and mine operations. Back issues are available at www.capitalpower.com
We also distributed newsletters for residents living near Halkirk Wind (Alberta) and K2 Wind Power Project (Ontario).
Forward-Looking Information
Forward-looking information or statements included in this Corporate Responsibility Report, including the print and on-line version, are provided to inform readers about management’s assessment of Capital Power’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this Corporate Responsibility Report includes is generally identified by words such as “will”. “anticipate”, “believe”, “plan”, “intend”, “target”, and “expect” or similar words that suggest future outcomes.
Forward-looking information in this Corporate Responsibility Report includes, among other things, information relating to: (i) expectations regarding the timing of funding of, generation capacity of, costs for, technology selected for or commercial arrangements regarding existing, planned and potential development projects and acquisitions; (ii) expectations regarding plant availability; (iii) expectations related to future revenues, expenses, earnings, funds from operations and cash flow per share; (iv) expectation regarding capital expenditures for plan maintenance and other; (v) the expected impact of GHG and other environmental regulations on Capital Power’s plants, including compliance targets and compliance costs and the future closure of coal-fired generation plants; and (vi) expectations regarding proposed new environmental regulations, including the timing of such regulations coming into force, and the impact of current and new environmental regulations on Capital Power’s business, including, but not limited to, Capital Power’s compliance costs.
These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments, and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements relate to: (i) electricity and other energy prices; (ii) performance; (iii) business prospects and opportunities including expected growth and capital projects; (iv) status of, and impact of policy, legislation, and regulations; and (v) effective tax rates.
Whether actual results, performance or achievements will conform to the Company’s expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company’s expectations. Such material risks and uncertainties are: (i) power plant availability and performance including maintenance expenditures, (ii) changes in electricity prices in markets in which the Company operates, (iii) regulatory and political environments including changes to environmental, financial reporting and tax legislation, (iv) acquisitions and developments including timing and costs of regulatory approvals and construction, (v) ability to fund current and future capital and working capital needs, (vi) changes in energy commodity market prices and use of derivatives, (vii) changes in market prices and availability of fuel, and (viii) changes in general economic and competitive conditions. See "Risks and Risk Management" in the Company’s MD&A dated February 28, 2014 for the year ended December 31, 2013.
Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.