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PostPosted: Sat Jan 21, 2017 7:32 pm    Post subject: American company gets paid by Ontario to NOT produce power Reply with quote

American utility gets paid by Ontario not to produce power at North Bay plant
Cap-and-trade blamed for mothballed Northern gas plants.

Atlantic Power Corporation announced it is mothballing natural gas plants in North Bay, Kapuskasing and Nipigon after the premature termination of its provincial power supply agreements.

Instead, the American utility said it has signed, what’s described as, Non-Utility Generator (NUG) Enhanced Dispatch Contracts with the Ontario Independent Electricity System Operator.

See: Mayor blames province for power plant closure

These new contracts, which came into effect Jan. 1, eliminate the power supply agreements with the North Bay and Kapuskasing plants, which were set to expire at the end of next December.

What it means for Atlantic Power is that these NUG contracts ensure the company will still get paid on a monthly basis until Dec. 31, 2017 without having to produce any power for the Ontario grid.

Their new NUG contract for Nipigon keeps the monthly government cheques flowing to Atlantic Power until the end of October 2018.
[Italics added]

“The contracts have no delivery obligations and allow (Atlantic Power Limited Partnership) to retain operating flexibility,” said a company release.

The Nipigon power purchase agreement was set to expire in December 2022, but Atlantic Power decided to suspend operations there too, “based on its assessment of the Ontario power market, including the estimated impact on plant economics…” said the release.

The Boston-based power producer owns 23 plants in two provinces and nine states in the U.S. Their Northern Ontario gas plants were each capable of producing 40 megawatts.

“The company is committed to working with those employees affected by the decision to mothball the three facilities,” the company said.

Atlantic Power revealed no numbers on job losses, but BayToday.com reported that 11 jobs will be lost in North Bay.

North Bay Mayor Al McDonald blamed the provincial government and its cap-and-trade program.

One of the benefits of 'cap and trade' ...

What is worrisome is that this has only started. The policy is hardly in place yet, and we are seeing job losses and increased costs.

Joined: 02 Mar 2009
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PostPosted: Sun Jan 22, 2017 8:19 pm    Post subject: Reply with quote

I had read an earlier article about this closure when it was first announced , it never mentioned they were being paid to not produce electricity ,

I've been up to north bay before and can't even picture where this plant is , sounds like its on highway 11 north which runs north of the city for miles so could be up there

the 11 jobs don't sound like much but in a city like north bay , 11 high paying jobs are a significant loss , there may be other jobs available but they wouldn't pay nearly as well as the gas company would of

Joined: 02 Mar 2009
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Location: Ontario

PostPosted: Wed Feb 01, 2017 9:50 am    Post subject: Reply with quote

( there has been another natural gas power plant suddenly close , this one near Kingston , not sure how it relates to the northern ones which also closed )

Power plant plug pulled

By Elliot Ferguson, Kingston Whig-Standard

Tuesday, January 31, 2017 8:12:39 EST PM

Northland Power’s Kingston Generating Station near Millhaven shut down on Tuesday. (Elliot Ferguson/The Whig-Standard)

It is the end of the line for a private sector power plant just outside Kingston.

Around 8 p.m. Tuesday, Northland Power's Kingston Generating Station near the west end of Taylor-Kidd Boulevard shut down after producing power for two decades.

The plant was in operation since 1997 and was among a series of privately owned power producers, now called non-utility generators, that received contracts to generate electricity.

That contract was not renewed and expired Tuesday. The closure of the plant means the loss of 18 jobs.

"I think we were one of the first ones not offered because the Ministry of Energy put a kibosh on new negotiations with non-utility generators," said Steve Collings, a regional manager with Northland Power Inc.

"We're the cheapest power across the board in Ontario, simply because the facility is paid for. Everything is in place."

Built in the mid-1990s, the plant went online in 1997 with a 20-year contract from the Ontario government to produce electricity.

The plant can produce a total of 115 megawatts of electricity -- enough to power about 70,000 homes -- including 70 megawatts of electricity through a natural gas-powered turbine and another 45 megawatts from a steam turbine.

Without any sort of contract, the company will be hard-pressed to carry the power plant for long while it is not producing electricity, Collins said.

The power plant's 20-year contract included a provision for a five-year extension that could have kept the plant running.

A year ago, in an attempt to secure a contract extension, the company offered to provide electricity to the grid for 5.9 cents per kilowatt hour. The proposal involved another of Northland Power's co-generation plants in Iroquois Falls that the company said would provide 220 megawatts of power that can be adjusted according to the market need.

According to the company, the proposal would have saved the government $5 million and reduced greenhouse gas emissions by 1.4 million tonnes over five years.

That offer was rejected, despite the government signing on to pay up to 8.1 cents per kilowatt-hour to Ontario Power Generation to help cover the cost of refurbishing the four reactors at the Darlington nuclear power plant.

Collings said the company would pursue possible power contracts in New York in an effort to restart the plant.

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American company gets paid by Ontario to NOT produce power

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