TransCanada to Build $1.2 Billion Power Plant in Southern Ontario
CALGARY, ALBERTA--(Marketwire - Sept. 30, 2009) - The Ontario Power Authority (OPA) has advised TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada) it has been awarded a 20-year Clean Energy Supply Contract to build, own and operate the 900 megawatt (MW) Oakville Generating Station (OGS) in Oakville, Ontario. TransCanada expects to invest approximately $1.2 billion in the natural gas fired combined cycle plant which is scheduled to start producing power by the end of 2013.
"We look forward to providing additional electricity supply and reliability within this key North American market," said Hal Kvisle, TransCanada's chief executive officer. "This facility strengthens our presence as the largest private sector power company in Ontario and Canada. The Oakville generating station is a strong fit with our strategy of developing large scale energy infrastructure projects that will produce stable, long-term returns for our shareholders."TransCanada's bid for the OGS was submitted in response to the OPA's Southwest Greater Toronto Area Request for Proposals (SW GTA RFP). According to the OPA, the OGS will help meet critical energy and stability needs in the area. The plant will provide the reliability required to support Ontario's growing renewable energy electricity production such as wind and solar and contribute toward replacing coal-fired generation.
Approximately 600 construction jobs will be created during the construction period of about 28 months. There will also be significant local spending on goods and services including food, lodging and supplies during construction and throughout the operating life of the plant. Additionally, approximately 25 permanent jobs will be created. The generating station is expected to be completed at the end of 2013.
Next steps involve completing an Environmental Review Report which will be made available for public review and comment in the fall. Emissions from OGS will meet or better all environmental regulatory standards. TransCanada must receive approval from the Ministry of the Environment on impacts such as air quality and noise before construction of the facility can proceed. Local community input is very important and extensive consultations will continue with stakeholders.
The OGS will be located on private, industrial land in the town of Oakville on Royal Windsor Drive, situated just east of the Queen Elizabeth Way (QEW) and will provide reliable, clean power to help meet the specific needs of the area.
TransCanada will work with the OPA to finalize the contract by mid-October 2009.
With more than 50 years' experience, TransCanada is a leader in the responsible development and reliable operation of North American energy infrastructure including natural gas pipelines, power generation, gas storage facilities, and projects related to oil pipelines. TransCanada's network of wholly owned pipelines extends more than 59,000 kilometres (36,500 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 approximately 370 billion cubic feet of storage capacity. A growing independent power producer, TransCanada owns, or has interests in, over 10,900 megawatts of power generation in Canada and the United States. TransCanada's common shares trade on the Toronto and New York stock exchanges under the symbol TRP. For more information visit: www.transcanada.com
Note: All financial figures are in Canadian dollars unless noted otherwise.
This news release may contain certain information that is forward looking and is subject to important risks and uncertainties. The words "anticipate", "expect", "believe", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking information. Forward-looking statements in this document are intended to provide TransCanada security holders and potential investors with information regarding TransCanada and its subsidiaries, including management's assessment of TransCanada's and its subsidiaries' future financial and operations plans and outlook. Forward-looking statements in this document may include, among others, statements regarding the anticipated business prospects and financial performance of TransCanada and its subsidiaries, expectations or projections about the future, and strategies and goals for growth and expansion. All forward-looking statements reflect TransCanada's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among others, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of TransCanada's pipeline and energy assets, the availability and price of energy commodities, capacity payments, regulatory processes and decisions, changes in environmental and other laws and regulations, competitive factors in the pipeline and energy sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments and the current economic conditions in North America. By its nature, forwardâ‘looking information is subject to various risks and uncertainties, which could cause TransCanada's actual results and experience to differ materially from the anticipated results or expectations expressed. Additional information on these and other factors is available in the reports filed by TransCanada with Canadian securities regulators and with the U.S. Securities and Exchange Commission (SEC). Readers are cautioned to not place undue reliance on this forwardâ‘looking information, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update publicly or revise any forwardâ‘looking information, whether as a result of new information, future events or otherwise, except as required by law.
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