(By Balaseshan) TransCanada Corp. (NYSE: TRP) said it has signed a contract with the Ontario Power Authority (OPA) to develop, own and operate a new 900-megawatt (MW) natural gas-fired power plant.
The facility will be located at Ontario Power Generation's Lennox Generating Station property in the town of Greater Napanee in eastern Ontario.
Construction of this 900-MW facility will mean an investment of millions of dollars in the local community that supports the creation of about 600 construction jobs and an expected 25 long-term jobs resulting in about $4 million in annual salaries and benefits.
The power plant will contribute to the local tax base each year, providing officials with the ability to invest those dollars locally. The details of the contract are based on terms of the memoranda of understanding that were signed in late September.
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The Napanee power plant will act as a replacement facility for one that was planned in the community of Oakville. It will operate under a 20-year power purchase arrangement with the OPA that will generate stable earnings and cash flow over the next two decades.
TransCanada currently operates the 683-MW Halton Hills Generating Station in Ontario, has a 50% ownership in the 550-MW Portlands Energy Centre on the Toronto waterfront and has agreed to purchase nine Ontario solar plants that would produce 86 MW of clean energy.
The company also owns a large portion of the Bruce Power nuclear facility - 49% of Bruce A and 32% of Bruce B. Bruce Power consists of two generating stations (Bruce A & B) with each station housing four nuclear reactors with an overall power output of 6,200 MW.
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TRP is trading up 1.09% at $46.47 on Monday. The stock has been trading between $39.74 and $47.02 for the past 52 weeks.