TORONTO, ON–(Marketwired – March 13, 2015) – Northland Power Inc. (“Northland” or “the Company“) (TSX: NPI) (TSX: NPI.PR.A) (TSX:NPI.PR.C) (TSX: NPI.DB.B) (TSX: NPI.DB.C) today announced that the Ontario Superior Court of Justice issued a decision on March 12, 2015, in relation to Northland’s dispute with the Ontario Electricity Financial Corporation (“OEFC”).
As previously disclosed, Northland’s wholly-owned subsidiary, Iroquois Falls Power Corp. (“Iroquois Falls”) and Northland’s managed facilities, Cochrane Power Corporation and Kirkland Lake Power Corporation (collectively, with Iroquois Falls, “the Entities”) along with a number of other power producers in Ontario, applied to the Court in relation to the interpretation of their power purchase agreements with the OEFC as it related to the price escalator for power sold under the agreements. The Court ruled in favour of the power producers in its decision.
In its original application, Northland estimated that its potential lost revenue over the life of the relevant agreements was in the range of $200 million. Northland is currently assessing the implication of the decision in relation to possible retroactive recoveries and future payments which may be payable to the Entities. The decision requires OFEC to recalculate the amounts payable under the agreements and is also subject to the OEFC’s right to appeal until April 13, 2015.
Northland is an independent power producer founded in 1987, and publicly traded since 1997. Northland develops, builds, owns and operates facilities that produce ‘clean’ (natural gas) and ‘green’ (wind, solar, and hydro) energy, providing sustainable long-term value to shareholders, stakeholders, and host communities.
The Company owns or has a net economic interest in 1,345 MW of operating generating capacity; 640 MW (400 MW net to Northland) of generating capacity under construction, including a 60% equity stake in Gemini, a 600 MW (360 MW net to Northland) offshore wind project in the North Sea near the Netherlands; and 432 MW (332 MW net to Northland) of projects with awarded power contracts under advanced development, including an 85% equity stake in Nordsee One. Northland’s cash flows are diversified over four geographically separate regions and regulatory jurisdictions in Canada and Europe.
Northland’s common shares, Series 1 and Series 3 preferred shares and Series B and Series C convertible debentures trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.C, NPI.DB.B, and NPI.DB.C, respectively.