TORONTO, Dec. 11—The Ontario Power Authority (OPA) announced today that it will sign a 20-year contract with York Energy Centre LP to design, build and operate a 393 megawatt (MW) electricity generating station, on Dufferin Street in the Township of King.

York Energy Centre LP is a limited partnership between York Energy Centre Inc., as general limited partner, and Pristine Power Inc., as limited partner. The Board of Directors of the OPA finalized the decision at a meeting December 10, 2008.

This simple-cycle, natural gas plant addresses the urgent need for clean, reliable and secure power in one of the fastest-growing regions in Ontario. It will also help Ontario close down coal-fired generation by 2014 – Canada’s single biggest climate change initiative.

Coal is being replaced by a diverse mix of cleaner, greener energy sources including renewable sources like water, wind, solar and biomass, as well as natural gas-fired generation. Natural gas power plants, such as the one to be built in King, are key to expanding renewables. They are a reliable and “on demand” source of electricity able to respond during peak periods as well as when more variable energy sources, such as wind and solar power, are not available.

In meeting the Northern York Region’s mayors last month to discuss the proposed plant, George Smitherman, Deputy Premier and Minister of Energy and Infrastructure, committed to attend a town hall meeting in the selected community early in the new year, along with the successful project proponent.

The new plant is part of a comprehensive electricity plan for Northern York Region developed in 2005. The decision is a culmination of a three-year collaboration between industry, technical and community participants to identify solutions that best address the regional need to improve local electricity supply and reliability.

The original Plan included:

• Contracting for 20 MW of peak demand reduction (since increased by 50 per cent to 30 MW)—well underway 
• Upgrades to the existing Armitage Transformer Station in Newmarket—completed in 2006 
• A new transformer station at Holland Junction—to be completed by Summer, 2009 
• Approximately 350 MW of new, natural gas-fuelled local generation

York Energy Centre LP satisfies the fourth element of the integrated plan and is scheduled to be in service by the end of 2011.

The OPA received six proposals to design, build and operate the plant. York Energy Centre LP has estimated the capital cost of the plant at $365 million—all of which will be financed privately, at no risk to Ontario consumers. The company expects the project to generate 150 jobs during the construction period.

In addition to the construction jobs, economic benefits for the community are expected to include permanent positions at the future facility, along with Ontario-purchased equipment and supplies as well as additional municipal tax revenue.

York Energy Centre LP is now responsible for securing all municipal, regional and provincial land use, environmental and health and safety approvals. Throughout this process the community will have an opportunity to provide additional input.

This release comes out following today’s close of financial markets.