Canadian energy infrastructure provider TransCanada Corp. (TRP,TRP.TO) on Wednesday was awarded a 20-year clean energy supply contract by the Ontario Power Authority, or OPA, to build, own and operate the privately-financed 900 megawatt Oakville, Ontario-based Oakville Generating Station. TransCanada noted that it would work with the OPA to finalize the contract by mid-October 2009, which would provide a new, cleaner source of electricity for the growing southwest Greater Toronto Area.
Calgary, Canada-based TransCanada added that it expects to invest about C$1.2 billion in the natural gas fired combined cycle plant which is scheduled to commence producing power by December 2013.
In a statement, chief executive officer of OPA, Colin Andersen said, "This new plant will meet local needs for a reliable supply of electricity, strengthen Ontario's overall system, while performing far above Ontario's stringent air emission standards. The selection process was fair and objective. TransCanada provides the best value and has the experience, expertise and capacity to deliver the project on time and on budget."
The Oakville Generating Station or 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 and would provide reliable, clean power to help meet the specific needs of the area.
The project is part of Ontario government's plan launched to help improve air quality in the southwest Greater Toronto Area following concerns raised in the community. The measures are designed to reduce emissions as well as reduce industrial energy consumption.
The new natural gas power plant will maintain local supply reliability and replace the coal-fired Lakeview generating station, helping Ontario become the first jurisdiction in the world to eliminate dirty coal from its electricity generation mix. TransCanada will also work with the community and key stakeholders to ensure the development of the new power plant in Oakville includes their input.
TransCanada added that about 600 construction jobs will be created during the construction period of about 28 months. Additionally, about 25 permanent jobs will also be created to operate and maintain the facility. The economy in the plant area would also be boosted by significant local spending on goods and services including food, lodging and supplies during construction and throughout the operating life of the plant. Further, the receipts under municipal taxes are estimated to exceed C$1 million annually. "We look forward to providing additional electricity supply and reliability within this key North American market. 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," chief executive officer of TransCanada, Hal Kvisle added.
In order to meet the critical energy and stability needs in the Ontario area, OPA's Southwest Greater Toronto Area requested for proposals and TransCanada submitted the bid for OGS. The plant will contribute toward replacing coal-fired generation, and provide the reliability required to support Ontario's growing renewable energy electricity production such as wind and solar.
The successful proponent was chosen from four proponents through a multi-stage evaluation by an independent team that examined each proposal's ability to meet the requirements laid out in the procurement process.
Since 2000, the Ontario government has been actively working with the community and scientific experts to address air quality issues in the area, including a four-part Clarkson Airshed Study. The most significant air quality improvement initiative was the closure of Mississauga's coal-fired Lakeview Generating Station in 2005, the equivalent to removing 500,000 cars from Ontario's roads.
TransCanada would now require to complete an Environmental Review Report to show that emissions from OGS will meet or better all environmental regulatory standards. Emission standards for the new plant are 70% stricter than what is currently required by the Ontario Ministry of the Environment. Additionally, it has to get the approval from the Ministry of the Environment on impacts such as air quality and noise before construction of the facility can proceed.
In Wednesday's regular trading session, TRP is currently trading at $30.86, up $0.24 or 0.78% on a volume of 99,920 shares. In the past 52-week period, the stock has been trading in a range of $20.01 to $36.33. TRP.TO is currently trading on the Toronto Stock Exchange at C$33.11, down C$0.09 or 0.27% on a volume of 0.53 million shares. In the past 52-week period, the stock has been trading in a range of C$28.86 to C$39.26.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.