TORONTO, ON—(Marketwired – April 19, 2016) – Northland Power Inc. (“Northland“) (TSX: NPI)Â (TSX: NPI.PR.A)Â (TSX: NPI.PR.B)Â (TSX: NPI.PR.C)Â (TSX: NPI.DB.B)Â (TSX: NPI.DB.C)Â announced today that the Ontario Court of Appeal has released its decision in respect of the appeal by the Ontario Electricity Financial Corporation (OEFC) of the March 12, 2015 decision by the Superior Court in relation to the interpretation of Northland's and other industry participants' power purchase agreements with OEFC as they relate to the price escalator for power sold under the agreements.Â As previously disclosed, Northland's wholly–owned subsidiary, Iroquois Falls Power Corp. and Northland's managed facilities, Cochrane Power Corporation and Kirkland Lake Power Corporation, along with a number of other power producers in Ontario, had been successful in having their interpretation of the agreements upheld by the Superior Court.
In its decision today, the Court confirmed the ruling of the Superior Court in favour of Northland and the other power producers.Â OEFC has the right to seek leave to appeal the Court's decision to the Supreme Court of Canada.
Northland estimates its share of past and future lost revenue over the life of the relevant agreements would have been approximately $225 million (originally estimated to be $200 million) had the Court found in favour of OEFC.Â Since the original decision by the Superior Court, the OEFC has made increased contractual payments of approximately $25 million for the period starting February 2015, consistent with the Superior Court's interpretation of the contracts.Â Subject to the right of appeal referred to above, Northland anticipates that its share of the remaining lost revenue from the period prior to the original decision, approximately $90 million including interest, will be paid in the coming months, and going forward, rates under the contracts will be indexed according to the interpretation confirmed by the courts, consistent with the rates that have been applied since February 2015.
Northland is an independent power producer founded in 1987, and publicly traded since 1997. Northland develops, builds, owns and operates facilities that produce 'clean' (natural gas) and 'green' (wind, solar, and hydro) energy, providing sustainable long–term value to shareholders, stakeholders, and host communities.
The Company owns or has a net economic interest in 1,338 MW of operating generating capacity and 1,032 MW (692 MW net to Northland) of generating capacity under construction, including a 60% equity stake in Gemini, a 600 MW offshore wind project, and an 85% equity stake in Nordsee One, a 332 MW offshore wind project, both located in the North Sea; as well as a 100 MW onshore wind farm in Grand Bend, Ontario currently in construction.
Northland's cash flows are diversified over four geographically separate regions and regulatory jurisdictions in Canada and Europe.
Northland's common shares, Series 1, Series 2 and Series 3 preferred shares and Series B and Series C convertible debentures trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.B, NPI.PR.C, NPI.DB.B, and NPI.DB.C, respectively.
This release contains certain forward–looking statements which are provided for the purpose of presenting information about management's current expectations and plans.Â Readers are cautioned that such statements may not be appropriate for other purposes. Forward–looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as “expects,” “anticipates,” “plans,” “believes,” “estimates,” “intends,” “targets,” “projects,” “forecasts” or negative versions thereof and other similar expressions, or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” These statements may include, without limitation, statements regarding future adjusted EBITDA, free cash flows, dividend payment and dividend payout ratios, the construction, completion, attainment of commercial operations, cost and output of development projects, the resolution of the arbitration claims, plans for raising capital, and the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of Northland and its subsidiaries.Â These statements are based upon certain material factors or assumptions that were applied in developing the forward–looking statements, including the design specifications of development projects, the provisions of contracts to which Northland or a subsidiary is a party, management's current plans, its perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances.Â Although these forward–looking statements are based upon management's current reasonable expectations and assumptions, they are subject to numerous risks and uncertainties. Some of the factors that could cause results or events to differ from current expectations include, but are not limited to, construction risks, counterparty risks, operational risks, foreign exchange rates, regulatory risks, maritime risks for construction and operation, and the variability of revenues from generating facilities powered by intermittent renewable resources and the other factors described in the “Risks and Uncertainties” section of Northland's 2015 Annual Report and Annual Information Form, both of which can be found atÂ www.sedar.comÂ under Northland's profile and on Northland's websiteÂ www.northlandpower.ca. Northland's actual results could differ materially from those expressed in, or implied by, these forward–looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward–looking statements will transpire or occur.