An operating agreement between Ontario Power Generation and the Ministry of Environment was struck on Monday that will see the plant operator pay $5.9 million to the province.
Ontario Power Generation said the agreement is to fund construction and operation of the power plant for the next three decades, starting in 2022.
It said it was the first contract with the province that it had negotiated.
The deal was struck in June after the province announced it would not pay back $8.8 billion in debt over the past five years and said it would have to buy power from the Ontario Power Authority.
The company had planned to buy the plant from Ontario Power Networks (OPEN) for $2.8 million in 2019.
The contract was announced following an audit by the Ontario auditor general, which found Ontario Power Generating made some “mistakes” in negotiating the deal.OPEN officials said Monday that the company was committed to the project, and was able to enter into a new agreement.
Ontary Power Generators president and CEO Dave Prentice told the Ontario Legislature that he was “deeply appreciative” of the government’s support.
He also said that Ontario Power will continue to have a strong presence in Ontario, and that the province’s new energy strategy will ensure that the plant is “one of the first projects in Ontario to be operational and generating electricity.”
“We will continue the momentum that we’ve built since our announcement last summer and continue to grow the Ontario power grid,” he said.
The government has also announced it will make a contribution of $500 million towards the construction and maintenance of the plant.