October 2 (Renewables Now) - Atlantic Power Corp (NYSE:AT) said on Tuesday it has inked a 10-year energy purchase agreement with BC Hydro for the output of the 66-MW Williams Lake biomass plant in British Columbia, Canada.
The contract became effective on October 1 and follows a short-term deal that expired on September 30, 2019. It calls for Williams Lake to get a fixed price per megawatt-hour of generated power that escalates annually with the British Columbia consumer price index (CPI).
Atlantic Power noted that it is considering fuel supply options and intends to release at a later date an earnings before interest, tax, depreciation and amortisation (EBITDA) forecast for Williams Lake under the new contract. Since the deal excludes a fuel cost passthrough, the power producer anticipates a greater variability to EBITDA and cash flow from Williams Lake as compared to its other contracted biomass facilities, it said.
The company also plans a number of major maintenance initiatives at the site that may start as early as this quarter. Completion of those projects are seen in 2020.