The Ontario Superior Court of Justice has ruled in favor of Northland Power in the independent power producer's global adjustment suit against the Ontario Electricity Financial Corp. (OEFC).
Northland – as well as other power producers in Ontario – asserts that the price escalator contained in power purchase agreements (PPAs) was being misapplied. As a result, the company estimates that its potential lost revenue over the life of the PPAs is in the range of C$200 million. The court ruled in favor of the power producers and requires OEFC to recalculate the amounts payable under the agreements.
For its part, Northland says it is assessing the implication of the decision in relation to possible retroactive recoveries and future payments, which may be payable.
The publicly traded company owns or has an interest in more than 1.3 GW of operating generating capacity in Canada as well as a share in several offshore wind projects located in Europe.