Capstone Infrastructure Corporation Provides 2015 Outlook

TORONTO, ONTARIO--(Marketwired - Dec. 18, 2014) - Capstone Infrastructure Corporation (TSX:CSE)(TSX:CSE.DB.A)(TSX:CSE.PR.A)(TSX:CPW.DB) (the "Corporation") today provided its financial outlook for fiscal 2015 and an update on Bristol Water's recent regulatory outcome.

"The evolution of Capstone's business and portfolio is generally proceeding according to our expectations," said Michael Bernstein, President and Chief Executive Officer. "Our wind development projects are steadily coming on line, with the Skyway 8 Wind Farm having reached commercial operations this year, Saint-Philémon in Quebec in the final stages of commissioning and our Goulais wind farm in Ontario expected to reach commercial operations in the second quarter of 2015. The medium-term wind development projects are progressing through their respective approvals. Our operating power facilities are performing well, including the Cardinal plant, which will begin operating as a cycling plant on January 1, 2015. On the utilities side, the Värmevärden district heating system continues to deliver good performance. At Bristol Water, the December 12 release of the UK regulator's final determination for the upcoming five-year regulatory period (AMP6) was disappointing and significantly different from what Bristol's management had proposed. Discussions are now underway to determine whether to refer the matter to the Competition and Markets Authority (CMA) for a binding review."

Outlook for 2015¹

The Corporation expects a higher contribution from its growing portfolio of wind power generation businesses, a lower contribution from Cardinal and a return to normal dividends from its district heating utility. Bristol Water will operate under the final determination issued by Ofwat, the economic regulator for water utilities in the UK, after the first quarter of 2015. Adjusted Earnings before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA")² in 2015 is anticipated to be approximately $115 million to $125 million. This compares with the 2014 outlook of $150 million to $160 million and reflects the lower contribution from Cardinal under its non-utility generator contract, and the impact of the final determination at Bristol Water.