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EPCOR Utilities Inc. and the Ontario Power Authority (OPA) have mutually agreed to terminate the renewable energy supply agreement for EPCOR's 160 MW Kingsbridge II wind project in the township of Ashfield-Colborne-Wawanosh in Ontario.

The Kingsbridge II project was selected through a request for proposals process in November 2005. A power purchase agreement (PPA) for output from the project was signed the same month. The PPA required the project to be in service by Oct. 31, 2008.

EPCOR experienced delays obtaining provincial and municipal approvals for the project and uncertainty respecting regulations concerning the project's layout, design and testing. As a result, EPCOR would be unable to meet the contracts conditions as a result of circumstances beyond its control. EPCOR has decided in cooperation with the OPA that it will not proceed with this project as originally planned. EPCOR will not incur any asset write-downs associated with this decision.

"This was a difficult decision," says Paul McMillan, senior vice president of EPCOR. "We've worked closely with the local community and landowners in Ashfield-Colborne-Wawanosh, and we want to thank those individuals for their support."

EPCOR is considering the future of the Kingsbridge II project and will continue with its Kingsbridge I operations.

SOURCE: EPCOR Utilities Inc.


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