The contract provides a base price of C$69 per MWh, plus additional payments for on-peak production. The base price and peaking premium will be increased annually, and together with additional revenue from the sale of ancillary products, is expected to result in an all-in year one price in excess of C$80 per MWh.
The contract increases the amount of Brookfield’s generation currently under long-term contract from approximately 50% to approximately 70%, reducing its reliance on shorter-term financial contracts. Deliveries under the OPA contract are set to begin December 1, 2009.
The facilities included in the agreement comprise 837MW of capacity and generate on average approximately 2300GWh of electricity annually.
