Enmax Corporation has found a partner for its new $1.4 billion dollar Shepard power plant.
After looking for more than a year, the city-owned utility reached a deal with Edmonton-based Capital Power to sell it 50 per cent of the entire project.
The natural gas-fired power plant on Calgary's eastern outskirts is now under construction and will generate 800 megawatts of electricity.
The Edmonton utility is putting up $860 million to become a 50-50 owner of the Shepard plant.
"In our industry, it's a common practice sometime when you have large investments like we have with Shepard to partner with someone on the cost of the operation so that's what we've done and it always made sense for us to do this with Shepard," said ENMAX CEO, Gianna Manes.
The injection of cash from Capital Power will help to build the plant. The company will then get half of its 800 megawatts — which it will turnaround, selling half right back to Enmax.
Capital Power president and CEO Brian Vaasjo says the fact it isn't a coal-fired plant, made it attractive.
"It is going to be the most efficient natural gas power generator in the province which has certainly some flexibility associated with that and certainly some competitive advantages," Vaasjo said.
"It’s an excellent fit with our business strategy and will strengthen our position in Alberta."
The Shepard plant is expected to start producing electricity in 2015.