TORONTO, ON--(Marketwired - July 04, 2017) - Northland Power Inc. ("Northland" or "the Company") (TSX: NPI) (TSX: NPI.PR.A) (TSX: NPI.PR.B) (TSX: NPI.PR.C) (TSX: NPI.DB.B) (TSX: NPI.DB.C) is pleased to announce that it has negotiated a Long-Term Enhanced Dispatch Contract (LTEDC) with the Independent Electricity System Operator (IESO) for Northland's 120MW cogeneration facility located in Iroquois Falls, Ontario. The contract, which took effect July 1, 2017, will result in reduced greenhouse gas emissions and cost savings for Ontario electricity consumers while maintaining equal or better economics for the company.
The LTEDC expires in 2021 and replaces the facility's previous contract with the Ontario Electricity Financial Corporation. Under the agreement, the facility will operate in dispatchable mode rather than baseload, which means that instead of producing a continuous supply of electricity, it will produce power only at times most beneficial to the system.
The change in operations will not impact any jobs at the facility. Savings will result from reduced costs related to cap and trade, maintenance, natural gas and gas transportation, as well as other variable cost savings.
"Today's announcement is a win-win," noted John Brace, CEO of Northland Power. "This contract reduces overall costs for ratepayers while providing a number of benefits for Northland. With a 30-year history of sustainable power generation in Ontario, we are proud to work with the IESO to meet the evolving needs of our electricity system."
Northland is an independent power producer founded in 1987, and publicly traded since 1997. Northland develops, builds, owns and operates facilities that produce 'clean' (natural gas) and 'green' (wind, solar, and hydro) energy, providing sustainable long-term value to shareholders, stakeholders, and host communities.
The Company owns or has a net economic interest in 1,754 MW of operating generating capacity and 332 MW of generating capacity under construction, representing an 85% equity stake in Nordsee One, an offshore wind project located in the North Sea. The Company also recently announced the acquisition of a 100% equity stake in a 252 MW offshore wind project DeBu currently in advanced development in the North Sea.
Northland's cash flows are diversified over four geographically separate regions and regulatory jurisdictions in Canada and Europe.
Northland's common shares, Series 1, Series 2 and Series 3 preferred shares and Series B and Series C convertible debentures trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.B, NPI.PR.C, NPI.DB.B, and NPI.DB.C, respectively.