Northland Power to build plant in Saskatchewan

NORTH BATTLEFORD, SASKATCHEWAN Northland Power Income Fund, the operator of two Canadian wind farms, agreed to build and run a $700 million (US $654.6 million) natural gas-fired plant that will supply electricity to Saskatchewan Power Corp.

Construction will start in July in North Battleford, Saskatchewan, and is scheduled for completion in 2013, Toronto- based Northland said today in a statement. SaskPower, the province’s largest electricity distributor, agreed to buy all of the plant’s output for 20 years and to cover any increase in fuel costs, according to the statement.

The 261-megawatt plant, located about 150 kilometers (93 miles) northwest of Saskatoon, will employ General Electric Co. turbines, Northland said. SaskPower, which is owned by the province, agreed in September to a 25-year power-supply contract for a $145 million, 86-megawatt plant that Northland is building in Spy Hill, Saskatchewan.

One megawatt can power about 800 average U.S. homes, according to an estimate by the Energy Department in Washington.

Business Week