OPG, TransCanada Eye Toronto Generator


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Ontario Power Generation and a unit of TransCanada PipeLines Ltd. have formed a partnership to assess the viability of a natural-gas-fuelled generating station in downtown Toronto.

The 50-50 venture, Portlands Energy Centre LP, envisions a 550-megawatt gas-fired cogeneration facility on part of the site of Ontario Power's former R.L. Hearn generating station in the city's eastern port area.

The plant's heat would provide steam to the heating system of Enwave District Energy Ltd., owned by the city of Toronto and the Ontario Municipal Employees Retirement System.

The partnership will start the environmental assessment process and at the same time finalize financial viability studies, Ontario Power Generation and TransCanada Energy Ltd. said.

The companies said they had been talking for months, and the announcement follows directions Nov. 12 to Ontario Power Generation from Ontario Energy Minister John Baird to speed its redevelopment of the Hearn site through a public-private partnership.

"Our partnership with OPG in the Portlands project fits well with our strategy to grow our power business," stated Hal Kvisle, chief executive at TransCanada.

He added that the Portlands Energy Centre is "the lowest-cost, most efficient and environmentally sound opportunity for new fossil-fuelled power generation in Ontario."

Financial terms of TransCanada's partnership with the generating division of the former Ontario Hydro monopoly were not disclosed.

"Our goal in starting the approvals process is to develop an energy centre that would fit well into the local community setting," stated OPG president Ron Osborne. "At the same time, the additional 550 megawatts of capacity could help improve the security and supply of electricity to meet the growing electricity needs of downtown Toronto."

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