Northland Power Inc. 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."
Source: Northland Power Inc.
Date: Jul 4, 2017