TransCanada Corp. (TSX, NYSE: TRP) said in a Feb. 13 earnings statement that it recently began construction on the 900-MW, gas-fired Napanee project in Ontario.
In January 2015, it began construction activities on Napanee, which is located at Ontario Power Generation’s Lennox site in eastern Ontario in the town of Greater Napanee. TransCanada expects to invest approximately C$1.0 billion in the Napanee facility during construction and commercial operations are expected to begin in late 2017 or early 2018. Production from the facility is fully contracted for 20 years with the Independent Electricity System Operator (IESO). The Napanee combined cycle project consists of two 271-MW gas turbine/generator sets and one 457-MW steam turbine/generator set.
Also, as part of a purchase agreement with Canadian Solar Solutions, TransCanada said Feb. 13 that it acquired its eighth solar facility for C$60 million in December 2014. Its total investment in the eight solar facilities is C$457 million. All power produced by the solar facilities is sold under 20-year power purchase arrangements with the IESO.
In late September 2014, the 972-MW Unit 30 at the Ravenswood Generating Station in New York experienced an unplanned outage as a result of a problem with the generator associated with the high pressure turbine. Insurance is expected to cover the repair costs and lost revenues associated with the unplanned outage, which are yet to be finalized. As a result of the expected insurance recoveries, net of deductibles, the Unit 30 unplanned outage is not expected to have a significant impact on earnings although the recording of earnings may not coincide with lost revenues due to timing of the anticipated insurance proceeds. The unit is expected to be back in service in the first half of 2015.
Ravenswood Generating Station, located in Queens, N.Y., is a 2,480-MW power plant that consists of multiple units employing steam turbine, combined cycle and combustion turbine technology. The boilers in Units 10, 20 and 30 are all capable of burning both No. 6 fuel and natural gas, which enables TransCanada to generate electricity with the most economic fuel mix to meet system demands. Combined cycle technology was added to the Ravenswood station with the installation of Unit 40 in 2004.
TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas and oil pipelines, power generation and gas storage facilities. TransCanada operates a network of natural gas pipelines that extends more than 42,500 miles, tapping into virtually all major gas supply basins in North America. TransCanada is one of the continent’s largest providers of gas storage and related services with more than 400 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns or has interests in over 11,800 MW of power generation in Canada and the United States. TransCanada is also developing one of North America’s largest oil delivery systems.