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CALGARY, May 9, 2012 /CNW/ - Veresen Inc. ("Veresen") (TSX: VSN) announced today that the York Energy Centre ("YEC") has commenced operations - on schedule and within budget. The YEC is a 400 MW gas-fired, electrical, peaking generation facility, located in the Township of King, with a 20-year contract with the Ontario Power Authority ("OPA").
Construction of the YEC started in September 2010 with an aggregate budgeted capital cost of $338 million. The YEC is jointly-owned by Veresen and an affiliate of Harbert Power, LLC, an independent power firm based in the United States. Veresen is the operator of the facility.
The YEC will help address the need for "quick response" power generation as identified by the OPA for northern York Region. The facility is able to respond to the need for electricity during times of peak demand and will provide critical grid support.
"This is a major accomplishment for Veresen," said Stephen White, President and Chief Executive Officer. "We met or exceeded all of our delivery milestones, and I am extremely proud of the tremendous effort and hard work of everyone involved in this project to see it through to completion."
"With the start of operations, we're participating in the Ontario power market. We will see growth in cash flow from our power business in 2012, and a full year of contributions from the York Energy Centre in 2013."
About Veresen Inc.
Veresen is a publicly-traded dividend paying corporation based in Calgary, Alberta, that owns and operates energy infrastructure assets across North America. Veresen is engaged in three principal businesses: a pipeline transportation business comprised of interests in two pipeline systems, the Alliance Pipeline and the Alberta Ethane Gathering System; a midstream business which includes ownership interests in a world-class natural gas liquids extraction facility near Chicago, the Hythe/Steeprock complex, and other natural gas and NGL processing energy infrastructure; and a power business with renewable and gas-fired facilities and development projects in Canada and the United States, and district energy systems in Ontario and Prince Edward Island. Veresen and each of its pipeline, midstream and power businesses are also actively developing a number of greenfield projects. In the normal course of its business, Veresen and each of its businesses regularly evaluate and pursue acquisition and development opportunities.
Veresen's common shares, Series A Preferred Shares and 5.75% convertible unsecured subordinated debentures, Series C due July 31, 2017 are listed on the Toronto Stock Exchange under the symbols "VSN", "VSN.PR.A" and VSN.DB.C", respectively. For further information, please visit www.vereseninc.com.
Dorreen Miller, Director, Investor Relations
Phone: (403) 213-3633