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IESO to Report to Ministry on Potential Calstock Extension

February 4, 2021

The Minister of Energy, Northern Development and Mines has asked the IESO to enter into discussions with Atlantic Power on options for a new five-year contract for the Calstock biomass generating facility to support a longer-term transition plan for the forestry sector. The existing agreement between Atlantic Power and the Ontario Electricity Financial Corporation was previously extended to address the economic impact on the community of shutting down the facility. The agreement has now been extended an additional 12 months, to December 2021, to allow sufficient time for discussions with the IESO to take place. The Minister asks the IESO to ensure ratepayer value while considering Atlantic Power’s revenue requirements. The IESO will report back to the Minister on the outcomes of its discussions later this year.  

The letter states that recontracting the 35 megawatt facility would help mitigate impacts to the waste biomass supply chain in Northern Ontario, while they transition to alternative uses for the waste biomass over the long-term. As part of the extension process, Atlantic Power has been asked to explore, with the IESO, incremental commercial benefits that can accrue to Constance Lake First Nation from a new contract.


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