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ARTICLE · 09 AUGUST 2011

OPA Waives Pre-NTP Termination Rights For FIT Contracts

Stikeman Elliott LLP
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On August 2, 2011, the Ministry of Energy directed the OPA to allow Suppliers under Ontario’s Feed-In Tariff (FIT) program to obtain a waiver of the OPA’s termination rights contemplated in section 2.4(a) of the FIT Contract.

CanadaEnergy and Natural Resources
The Energy Practice Group
The Energy Practice Group
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On August 2, 2011, the Ministry of Energy directed the OPA to allow Suppliers under Ontario's Feed-In Tariff (FIT) program to obtain a waiver of the OPA's termination rights contemplated in section 2.4(a) of the FIT Contract.

Obtaining a waiver of this termination right is meant to expedite issuance of a Notice to Proceed (NTP) by reducing contractual termination risk and allowing Suppliers to procure financing for equipment orders.

Section 2.4(a) permits either the OPA or the Supplier to unilaterally terminate the FIT Contract at any time before the OPA issues a NTP and the Supplier has paid the Incremental NTP Security.

Different submissions and deadlines will apply to Capacity Allocation Required (CAR) Suppliers and Capacity Allocation Exempt (CAE) Suppliers.

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