The Nipigon Project is a 40 MW gas-fired enhanced combined-cycle generating facility located in Nipigon, Ontario adjacent to the TransCanada Mainline. Nipigon commenced commercial operation in May 1992.
In late 2016, in response to oversupply conditions in the Province, Atlantic Power reached agreement with the Ontario Electricity Financial Corporation (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 had no delivery obligations and the Company did not operate the facilities while the Enhanced Dispatch Contracts were in effect.
Nipigon's Enhanced Dispatch Contract ran through October 2018. In December 2017, Nipigon reached agreement on a Long-Term Enhanced Dispatch Contract (LTEDC) that became effective in November 2018 and will expire in December 2022. Under this arrangement, the project returned to service in single-cycle mode and will operate on a flexible basis. The LTEDC provides for monthly capacity-type payments. The project will earn energy revenues when it operates, although the capacity factor is expected to be low.
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.