Northland Power announced it has won a global adjustment case against the Ontario Electricity Financial Corporation (OEFC).
The Toronto-headquartered independent power producer announced that the Ontario Superior Court of Justice has ruled in its favour in relation to its dispute with the OEFC.
Northland, and other power producers in Ontario, had 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.
Northland contended that it lost $200 million revenue over the life of the relevant agreements. Now with a favourable decision in hand, the company is assessing possible retroactive recoveries.
The company said the decision requires the OFEC to recalculate the amounts payable under the agreements and is also subject to the OEFC's right to appeal until April 13.
Northland operates a natural gas generating station in Iroquois Falls and natural gas-biomass cogenerating stations in Cochrane and Kirkland Lake, along with other power stations in Ontario and in Europe.
The OEFC was established during the breakup of the old Hydro One to manage the legacy debt and other liabilities.
