Capital Power reports $132 million Q2 loss after closing major acquisition
The Edmonton-based electricity producer says its net loss attributable to shareholders was $132 million during the quarter ended June 30, or 92 cents per diluted share.
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Winnipeg Free Press
21 hours ago
- Winnipeg Free Press
Nuclear option
Opinion The quest for more power to meet rising demand from electric vehicles and data centres running artificial intelligence technology has led to an apparent 'renaissance' of nuclear energy. The White House recently posted an op-ed piece exalting U.S. President Donald Trump's executive orders for reinvigorating America's nuclear power generation using that just that term, while effusively lauding his agenda to increase the nation's output by 300 gigawatts by 2050. That's enough to power about 300 million homes or, more likely, thousands of data centres for AI, as well as millions of EVs. Climate change commitments may not be high on the U.S. president's mind, but it is on China's list, as it seeks to add as much as 400 GW more from atomic energy by 2050 while aiming to decarbonize its economy. It's arguably off a faster start with 119 GW of nuclear power generation in construction or development. India is next in activity with 32 GW potentially under development. The United States is much further behind at eight GW, even trailing nations like France and Poland. Actual activity and planned growth suggests trillions of dollars being invested in nuclear energy over the coming decades — and investors are intrigued. 'The ducks are coming in a row, finally,' says Scott Clayton, Toronto-based senior analyst for the Canadian Wealth Advisor with the TSI Network in Toronto. The last time nuclear energy was on an upswing with investors was in the 2000s as oil prices surged. Then, the Fukushima plant disaster in Japan in 2011 put the brakes on nuclear power. Companies like Cameco Corp. — based in Saskatoon and the world's largest uranium producer — saw growth put on ice. That is until recently. Today, Cameco's share price, fuelled largely by all the talk of plans for new reactors, is at all-time highs. Although Canada may be an oil and gas powerhouse, its potential as a supplier of the fuel for nuclear energy has arguably more upside. It has the third largest discovered reserves in the world. It is also the second-largest producer behind Kazakhstan and potentially much more production is coming, as exploration companies like NexGen Energy and Paladin Energy look to develop mines in the Athabasca Basin (home to the highest-grade deposits of uranium in the world). Yet before jumping into a surging industry, driven by the future promise of much more nuclear power (not to mention the unnerving revival of the nuclear arms race), let's splash a bit of cold water on the overheating rods of speculation. 'It still faces challenges,' Clayton says. Among them are regulatory concerns. Mining projects in Canada take a notoriously long time to be approved and uranium is particularly tricky, given its environmental impact. Power plants are equally complicated. The public might appreciate the cheap, abundant power, just don't generate it close to where they live. 'The other problem is that the costs (of construction) are just astronomical,' Clayton says. The newest nuclear power generating station in the U.S, for example — two reactors at Plant Vogtle in Georgia — cost US$35 billion and were behind schedule and over budget. 'We definitely think it's (nuclear energy) going to be needed,' says Andrew Bischof, senior equity analyst at Morningstar in Chicago. Yet many projects are far from construction, let alone completion, and a history exists of projects being cancelled, especially in the U.S. Bischof says many major utility companies are talking about amping up nuclear power, but those are far-away ambitions, part of five- and 10-year plans to build capacity, which could take several more years before that power is added to the grid. There does seem to be more buzz around small modular reactors, he adds. These are scaled-down power plants that take less time to build, but it's an emerging technology. To that end, Canada is a leader with a project underway in Darlington, Ont. 'Duke Energy has also mildly stated that it's exploring SMRs, but again, that is 2030 to 2035 for a time frame,' Bischof says about the U.S. power provider, which presently has six nuclear power plants in the U.S.. Notably, big tech — Microsoft, Meta and Alphabet (Google) — are considering or currently entering into contracts with power providers, providing cash up front to restart or build new nuclear capacity, often involving small reactors, to meet climate change goals and growing energy-hungry AI capabilities. The need is substantial. AI is forecast to eat up 20 per cent of new energy growth through 2030. EV expansion is expected to increase demand by 15 per cent. Whether all this growth translates into future profits remains to be seen. In the meantime, investors might consider risk-adjusted exposure. 'If you're looking to invest in more speculative areas, it's best to get exposure through stocks that already have a solid business,' Clayton says. He points to U.S.-based Constellation Energy Corp. as one viable choice. Nearly 70 per cent of its output is nuclear and it pays a small dividend (0.47 per cent yield). Another way to invest in this theme is exchange-traded funds (ETFs). Investors have close to a handful of choices. One of the longest running is VanEck Uranium and Nuclear ETF, launched in 2007. It has seen renewed popularity, after peaking in price around 2011. '(Its) recent asset growth mirrors a broader nuclear renaissance fueled by surging electricity demand, the global pursuit of dependable low carbon power and fresh policy support extending plant life and financing next generation reactors,' says Brandon Rakszawski, director of product management, VanEck in New York. Monday Mornings The latest local business news and a lookahead to the coming week. Its portfolio also holds the aforementioned stocks with Constellation and Cameco among the largest positions. While the stars might be aligning for nuclear, conditions quickly change — i.e. battery power for renewables — that could make a long-term investment in nuclear suddenly less ideal. Still, for investors with an appetite for risk and a long time horizon, the nuclear option could power long-term profitability. Joel Schlesinger is a Winnipeg-based freelance journalist joelschles@
CTV News
a day ago
- CTV News
Epcor offers up to $10K in rebates through rainwater pilot program
Epcor is offering up to $10,000 in rebates to eligible projects that help slow the direct flow of rainwater into storm drains. (Dave Mitchell/CTV News Edmonton) Edmontonians could receive up to $10,000 in rebates from Epcor through a pilot program that encourages property owners to slow rainwater from flooding storm drains. The RainWise program was launched in April and it will run for three years. Single-family, multi-family and commercial properties in Edmonton are eligible for a rebate if they build a project that meets certain eligibility requirements and slows the direct drainage of storm water. Epcor RainWise rebate program The Epcor RainWise program provides up to $10,000 in rebates to eligible projects that help prevent a demand on city storm systems. (Dave Mitchell/CTV News Edmonton) Projects listed on the Epcor website include: Downspout disconnections; rain barrels and storage tanks; rain gardens and box planters; soakaway pits; permeable pavement; and absorbent landscaping. 'If we can slow it down, it helps prevent flooding in local areas, then ultimately for the greater city of Edmonton area,' Dale DeBock with Epcor told CTV News Edmonton on Friday. He said up to $2,000 rebate may be approved for a multi-family project, and up to $10,000 rebate for larger commercial projects. 'We've put our money where our mouth is and we want to help the community do these projects, and we are encouraging these projects to happen,' he said, adding that Epcor has invested $300,000 for the length of the pilot. Epcor is offering rebates for eligible property projects that slow rainwater Homeowners can receive rebates for eligible projects through an Epcor pilot program that aims to slow rainwater from entering storm drains. (Dave Mitchell/CTV News Edmonton) DeBock said to avoid flooding, Epcor has had to do 'expensive upgrades to storm systems' and build big pipes to 'handle' all the rainwater. He said the program incentivizes people to take initiative and explore different things they can do in their backyards, and to help avoid these added costs. 'This is an opportunity to invest in the community and people's personal part of the city that would reduce the cost … or even eliminate the need for an upgrade altogether.' Applications can be made online. Projects that meet the eligibility requirements will receive a reply with approval. Receipts are then submitted when work is completed and homeowners will receive the rebate. At the time of the interview, DeBock said more than 220 applications have been made since the start of the program. With files from CTV News Edmonton's Nahreman Issa and Dave Mitchell
CBC
a day ago
- CBC
Some Edmonton builders see up to 20% cost increases as tariff war continues
Social Sharing Construction experts say it's too soon to say how swiftly Edmonton's industry will be hit as U.S. President Donald Trump unveils a new set of tariffs — but some builders say they've had to deal with sharp increases of up to 20 per cent on supplies. "Since the tariffs and the announcements came out, we have been seeing lots of uncertainty," Issam Saleh, owner of Edmonton-based Vivid Homes, told CBC on Friday. "Our customers that we've been working with, they have been extremely cautious in terms of closing a deal." Trump signed an executive order on Thursday boosting tariffs from 25 per cent to 35 per cent on Canadian goods that don't comply with the Canada-U.S.-Mexico Agreement (CUSMA). "Our prices have escalated and increased, I would say, about 20 per cent," Saleh said, adding that sales have been impacted. "And then every time we go back to the customers about these prices, it just sends another negative vibe for them to close the deal. Scott Fash, CEO for Building Industry and Land Development Association (BILD) Alberta, said the situation is multifaceted and that costs may arise as a result of Canada's response to the U.S. imposing tariffs. "It's not the U.S. tariffs that impact the cost of housing. It's the Canadian tariffs that we put on in response to the U.S. tariffs. So us putting tariffs on a whole bunch of the U.S. products that we purchased to then build a home," Fash said. "That's where we're going to potentially see the impacts on housing costs, and in Canada and Alberta." Fash said much of the impact is from things like washers, dryers, stoves, HVAC systems and plumbing. Close to 70 per cent of the gypsum used to make drywall is also imported from the U.S. Fash said the federal government will need to be mindful on how it carves out exemptions for construction input costs. "Knowing we need to respond, but … selective in a way that's not going to hurt the person trying to buy a house." For some like Charles St-Arnaud, chief economist at Alberta Central, the central banking facility and trade association for. Alberta's credit unions, the overarching impact may not be as bad as it seems. "As more and more businesses do the paperwork and the heavy lifting to get their CUSMA compliance certificate .... the share of our exports that are submitted to tariffs will continue to to move lower," St-Arnaud said. However, St-Arnaud said tariffs still don't bode well for the construction industry. "The impact will be mainly on increased construction costs, in an area where already we're dealing with affordability issues, is not helping to provide a cheaper supply on the market." Long-term impacts Edmonton commercial contractor Jen Hancock with the Alberta Construction Association is optimistic about the long-term impacts of the tariffs. "With all the uncertainty, you see people hedging bets, raising prices, just little bits and pieces here and there, but that starts to layer on top of each other, projects become more expensive," Hancock told CBC. "Companies aren't going to lower their price, if they've been hedging their bets around tariffs, if they can get that money. So the uncertainty that's being created in the market right now is actually probably permanently raising construction costs, which isn't great for owners and it's not great for companies."
