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ARTICLE · 14 SEPTEMBER 2018

Termination Provisions In Power Purchase Agreements: How Will Ontario Impact Saskatchewan And Alberta

Miller Thomson
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Power Purchase Agreements (PPAs) provide for the purchase of electricity, usually by a utility or corporation, from an independent power producer (IPP). How will recent cancellations of PPAs...

CanadaEnergy and Natural Resources
Chad Eggerman
Chad Eggerman
Aaron Atcheson
Aaron Atcheson
Grant D. Sprague, K.C.
Grant D. Sprague, K.C.
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Power Purchase Agreements (PPAs) provide for the purchase of electricity, usually by a utility or corporation, from an independent power producer (IPP). How will recent cancellations of PPAs in Ontario impact future PPAs anticipated in Saskatchewan and Alberta?

On July 13, 2018, Ontario's new Progressive Conservative government followed up on its campaign promises and announced the termination of 758 renewable energy projects for which the Independent Electricity System Operator (IESO) contracts had not yet been finalized. Additionally, the 18.5-megawatt White Pines Wind Project (the White Pines Project), which had been undergoing development over the past 10 years and recently received final approval for construction from IESO in May, was cancelled. In response to this announcement, the developer indicated that it may seek to recover the estimated $100 million that it has sunk into the White Pines Project to date. In order to cancel the White Pines Project contract,

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