The Nipigon Project is a 40 MW gas-fired enhanced combined-cycle generating facility located in Nipigon, Ontario adjacent to the TransCanada Mainline. Nipigon utilizes a process called enhanced combined-cycle generation to produce electricity from a traditional gas turbine generator and steam turbine generator set, and from steam produced from the hot exhaust gases (“waste heat”) from the two nearby TransCanada Mainline gas transmission compressor station turbines, when such waste heat is produced. Nipigon commenced commercial operation in May 1992.
Nipigon sells 100% of its output to the Ontario Electricity Financial Corporation (OEFC) under a Power Purchase Agreement (PPA) that expires in December 2022. Natural gas is provided to the Project under a long-term gas supply agreement with BP Canada Energy that expires in December 2022. In late 2016, in response to oversupply conditions in the Province, Atlantic Power reached agreement with the OEFC to suspend or terminate the PPAs for three of its Ontario projects and replace them with Enhanced Dispatch Contracts with the Ontario Independent Electricity System Operator (IESO). The Enhanced Dispatch Contracts have no delivery obligations and the Company does not expect to operate the facilities while the Enhanced Dispatch Contracts are in effect.
In the case of Nipigon, the Enhanced Dispatch Contract runs through October 2018. After that time, the PPA will be reinstated and remain in effect through its scheduled expiration date of December 2022. The Company remains in discussions with the relevant parties in Ontario about potential further modifications to the PPA that could be beneficial to both sides.
Atlantic Power indirectly owns 100% of Nipigon, which was acquired as part of the Capital Power Income LP acquisition in November 2011. Atlantic Power also operates and manages the Project.
Enhanced Dispatch Contract with IESO Expires Oct. 2018
PPA with OEFC through Dec. 2022
Non-operational status while Enhanced Dispatch Contract is in effect