The Kapuskasing Project, which achieved commercial operation in 1997, is a 40 MW gas-fired enhanced combined-cycle generating facility located near Kapuskasing, Ontario adjacent to the TransCanada Mainline. The project is not currently in operation.
Kapuskasing had been under a long-term PPA with the Ontario Electricity Financial Corporation (OEFC) that was scheduled to expire in December 2017, but in December 2016, in response to an oversupply of power in Ontario, Atlantic Power reached agreement with the OEFC to terminate the PPA and replace it with a short-term enhanced dispatch contract with the Independent Electricity System Operator (IESO). The short-term contract, which expired in December 2017 and was not extended, did not require the project to operate.
The Company has the option of returning the project to service should market conditions improve in the future, an event that is unlikely in the near term based on the current supply and demand outlook for the Province. The Company has begun a marketing effort for its Kapuskasing and North Bay projects.
Atlantic Power indirectly owns 100% of Kapuskasing, which was acquired as part of the Capital Power Income LP acquisition in November 2011. Atlantic Power also manages the Project.