TransCanada Energy reach deal to relocate power plant
- Ontario Minister of Energy Chris Bentley recently announced that the Ontario Power Authority has reached an agreement in principle with TransCanada Energy to develop a new 900-megawatt natural gas-fired power plant on the site of Ontario Power GenerationÂ’s Lennox Generating Station in eastern Ontario.
The location was selected to take advantage of existing transmission and gas infrastructure as well as the expertise of local workers. The plant is expected to be in service by the first quarter of 2017 and will provide 600 jobs during construction.
“[This recent] announcement helps support Ontario's plan to modernize the province's electricity infrastructure, clean up the air we breathe and end the use of coal by 2014,” said Minister Bentley.
The cost of TransCanada's plant at Lennox will be comparable to the cost of the original competitively procured Oakville plant. In addition, TransCanada will receive $40 million to cover the costs it incurred for goods and services that cannot be used at the Lennox site.
The OPA-TransCanada agreement has been formalized in a memorandum of understanding. OPA and TransCanada will now negotiate a contract based on the terms of that agreement. TransCanada will also finalize site-specific arrangements with Ontario Power Generation. It is expected that the contract and other arrangements will be finalized by December 14, 2012.
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The British government asked its nuclear regulator to start the approval process in March, having backed Rolls-Royce’s $546 million funding round in November to develop the country’s first SMR reactor.
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Speaking to Reuters in an interview conducted virtually, Stein said the regulatory “process has been kicked off, and will likely be complete in the middle of…
