Canadian Manufacturing

OPA, TransCanada finalize deal to move gas-fired plant east

900-megawatt plant originally slated for Oakville, Ont., to be built at Lennox site in Napanee



TORONTO—The Ontario Power Authority (OPA) says it has finalized a deal with TransCanada Energy to relocate a gas-fired power plant to eastern Ontario.

According to the OPA, the much-maligned 900-megawatt plant originally slated for Oakville, Ont., located southwest of Toronto, will be built about 260 kilometres northeast along the shores of Lake Ontario in Napanee.

Energy Minister Chris Bentley told the legislature in September the total unrecoverable cost for moving the Oakville energy project to the Lennox generating facility in Napanee will be $40-million.

As part of the deal, TransCanada acquired land at OPG’s Lennox generating station, Canada’s largest oil/gas-fuelled electricity generation site, where it will build the new plant.

The details of the contract are based on terms of the memoranda of understanding signed in late September, which stated the OPA will pay TransCanada $210-million for the cost of the gas turbines and other turbine related costs.

In addition, TransCanada will receive $40-million to cover costs incurred for goods and services scheduled for the Oakville site that cannot be used at the replacement site.

These funds are over-and-above the Net Revenue Requirement TransCanada will be paid for Lennox, which is is $15,200/MW-Month, or $1.37-million per month at full capacity.

“We will take the necessary steps to ensure this is an environmentally responsible project and will also focus on the safety of the community, our employees and being a good neighbour,” said Russ Girling, TransCanada’s president and chief executive officer.

Construction of this 900-MW facility will mean approximately 600 construction jobs and an expected 25 long-term jobs resulting in approximately $4 million in annual salaries and benefits.

TransCanada claims this new natural gas-fired plant would use leading edge environmental technologies to control emissions.

With files from The Canadian Press

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