TORONTO, June 29 /CNW/ - Today the Ontario Energy Board (the Board) held
an emergency proceeding to hear a motion by Integrated Grain Processors
Co-Operative Inc. (IGPC) related to certain agreements underpinning the
financing of a pipeline to serve a proposed ethanol production facility in
The Board had previously granted Natural Resource Gas Limited (NRG) leave
to construct with respect to the pipeline. In that proceeding, the Board
approved two agreements, a gas delivery agreement and a pipeline cost recovery
agreement. The agreements contemplated that the parties execute consents for
the assignment of the agreement to the benefit of the lenders to IGPC, the
operator of the proposed ethanol facility.
NRG refused to execute the necessary consents and as a result IGPC may
not be able to complete its financing. The Board ordered NRG to execute the
consents by 4:00 p.m. today in order that the financing of the pipeline could
proceed and the ethanol facility could become operational. The consents are
necessary to release funding for the facility that had been obtained from the
480 members of the cooperative that had subscribed to shares.
The Board also ordered NRG to provide service to IGPC pursuant to a
Bundled T Service Receipt Contract as requested by IGPC.
The Board's Order in this matter required NRG to execute the consents by
4:00 p.m. today. NRG refused. As a result the Board ordered NRG to pay an
administrative penalty of $20,000 per day until such time as the Order is
A copy of the official transcript will be available on the Board's
web-site on Tuesday, July 3, 2007.
The Ontario Energy Board regulates the province's electricity and natural
gas sectors in the public interest. It envisions a viable and efficient energy
sector with informed consumers served by responsive regulatory processes that
are effective, fair and transparent.
For more information on the Board, please visit our web site at
www.oeb.gov.on.ca or contact the Consumer Relations Centre at 416-314-2455 or
toll-free at 1-877-632-2727.
For further information:
For further information: Vanda Wall, Ontario Energy Board, (416)