TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) has signed a contract with the Ontario Power Authority (OPA) to develop, own and operate a new 900-megawatt (MW) natural gas-fired power plant. The facility will be located at Ontario Power Generation’s Lennox Generating Station property in the town of Greater Napanee in eastern Ontario.
“The contract signing will allow TransCanada to move forward with our plans to provide a reliable source of electricity to the people of Ontario,” said Russ Girling, TransCanada’s president and chief executive officer. “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.”
Construction of this 900-MW facility will mean an investment of millions of dollars in the local community that supports the creation of approximately 600 construction jobs and an expected 25 long-term jobs resulting in approximately $4 million in annual salaries and benefits. The power plant will contribute to the local tax base each year, providing officials with the ability to invest those dollars locally.
We are committed to building, operating and maintaining our power plants safely. The safety of our employees, our facility neighbours and the public are top priorities for TransCanada. Our corporate safety performance is regularly amongst the highest in our industry. In addition, this new, clean burning, natural gas fired plant would use leading edge environmental technologies to control emissions.
The details of the contract are based on terms of the memoranda of understanding that were signed in late September. The Napanee power plant will act as a replacement facility for one that was planned in the community of Oakville. It will operate under a 20-year power purchase arrangement with the OPA that will generate stable earnings and cash flow over the next two decades.
TransCanada currently operates the 683-MW Halton Hills Generating Station in Ontario, has a 50 per cent ownership in the 550-MW Portlands Energy Centre on the Toronto waterfront and has agreed to purchase nine Ontario solar plants that would produce 86 MW of clean energy. We also own a large portion of the Bruce Power nuclear facility - 49 per cent of Bruce A and 32 per cent of Bruce B. Bruce Power consists of two generating stations (Bruce A & B) with each station housing four nuclear reactors with an overall power output of 6,200 MW.