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ARTICLE · 02 MARCH 2011

Torys On Environmental, Health And Safety

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On February 9, 2011, the Ontario Power Authority (OPA) announced that it will offer feed-in tariff (FIT) contract holders an extension of up to one year on their milestone date for commercial operation (milestone COD).

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Dennis Mahony
Dennis Mahony
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David Chernos
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Tyson Dyck
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Ontario

Ontario Power Authority to offer extension to FIT contract suppliers

On February 9, 2011, the Ontario Power Authority (OPA) announced that it will offer feed-in tariff (FIT) contract holders an extension of up to one year on their milestone date for commercial operation (milestone COD). To take advantage of this extension, electricity suppliers will be required to execute a FIT-contract amending agreement with the OPA. According to the OPA, the extension offer is a response to delays in the province's renewable energy approval (REA) process.

In exchange for the extension of the milestone COD, suppliers will be required to surrender certain force majeure (FM) rights. To date, the OPA has provided little detail on which FM rights must be surrendered (to obtain the extension), but the OPA has indicated that those details will be set out in emails to suppliers. The OPA has also indicated that it will only grant other types of FM claims (i.e., relating to FM

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