(RTTNews) - Canadian energy infrastructure provider TransCanada Corp. (TRP: News ,TRP.TO: News ) 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.

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