Power utility reports profit

Capital Power Corp. (TSX:CPX), which was spun off from Epcor Utilities last year, said Tuesday it earned $7 million in its latest quarter.

EDMONTON — Capital Power Corp. (TSX:CPX), which was spun off from Epcor Utilities last year, said Tuesday it earned $7 million in its latest quarter.

The power utility said its profit amounted to 33 cents per share for the quarter ended Dec. 31 on $497 million in revenue.

“We continue to experience weak power prices in Alberta that are expected to remain low in 2010, mainly due to low natural gas prices,” president and chief executive Brian Vaasjo said in a statement.

“However, substantially all of the company’s merchant production in 2010 has been hedged at an average price above the current forward curve, thereby minimizing the company’s exposure to depressed power prices.”

Capital Power has interests in 31 power facilities in Canada and the U.S. totalling approximately 3,500 megawatts of generation capacity.

Shares in the company, which reported its earnings after the close of markets, were up 35 cents at $22.85 on the Toronto Stock Exchange on Tuesday.