TORONTO, ON–(Marketwired – April 19, 2016) – Northland Power Inc. (“Northland“) (TSX: NPI) (TSX: NPI.PR.A) (TSX: NPI.PR.B) (TSX:NPI.PR.C) (TSX: NPI.DB.B) (TSX: NPI.DB.C) announced today that the Ontario Court of Appeal has released its decision in respect of the appeal by the Ontario Electricity Financial Corporation (OEFC) of the March 12, 2015 decision by the Superior Court in relation to the interpretation of Northland’s and other industry participants’ power purchase agreements with OEFC as they relate to the price escalator for power sold under the agreements.
As previously disclosed, Northland’s wholly-owned subsidiary, Iroquois Falls Power Corp. and Northland’s managed facilities, Cochrane Power Corporation and Kirkland Lake Power Corporation, along with a number of other power producers in Ontario, had been successful in having their interpretation of the agreements upheld by the Superior Court.
In its decision today, the Court confirmed the ruling of the Superior Court in favour of Northland and the other power producers. OEFC has the right to seek leave to appeal the Court’s decision to the Supreme Court of Canada.
Northland estimates its share of past and future lost revenue over the life of the relevant agreements would have been approximately $225 million (originally estimated to be $200 million) had the Court found in favour of OEFC. Since the original decision by the Superior Court, the OEFC has made increased contractual payments of approximately $25 million for the period starting February 2015, consistent with the Superior Court’s interpretation of the contracts. Subject to the right of appeal referred to above, Northland anticipates that its share of the remaining lost revenue from the period prior to the original decision, approximately $90 million including interest, will be paid in the coming months, and going forward, rates under the contracts will be indexed according to the interpretation confirmed by the courts, consistent with the rates that have been applied since February 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 1,338 MW of operating generating capacity and 1,032 MW (692 MW net to Northland) of generating capacity under construction, including a 60% equity stake in Gemini, a 600 MW offshore wind project, and an 85% equity stake in Nordsee One, a 332 MW offshore wind project, both located in the North Sea; as well as a 100 MW onshore wind farm in Grand Bend, Ontario currently in construction.
Northland’s cash flows are diversified over four geographically separate regions and regulatory jurisdictions in Canada and Europe.
Northland’s common shares, Series 1, Series 2 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.B, NPI.PR.C, NPI.DB.B, and NPI.DB.C, respectively.