OEB Approves OPG's Reliability Must-run Contract with the IESO

    TORONTO, Dec. 21 /CNW/ - Today the Ontario Energy Board (the Board)
issued a Decision approving a third reliability must-run (RMR) contract
between Ontario Power Generation Inc. (OPG) and the Independent Electricity
System Operator (IESO) for OPG's Lennox generating station. A first RMR
contract for Lennox was approved by the Board on March 13, 2006 and a second
was approved on January 22, 2007.
    In February 2007, OPG filed a request with the IESO to deregister Lennox.
 In May 2007, the IESO confirmed that all four units at Lennox continue to be
required to operate the system reliably, and negotiated the RMR contract with
OPG to cover the period from October 1, 2007 to September 30, 2008. The terms
and conditions of the latest RMR contract are essentially the same as those in
the two previous RMR contracts approved by the Board, save for the total
contract costs.
    In its Decision, the Board noted there are no alternatives to the Lennox
RMR contract in the short term, and determined the financial provisions of the
contract are reasonable. The Board also noted Lennox is expected to be
required for reliability reasons until at least the end of 2009, and that it
is therefore likely that further RMR contracts will be negotiated in the
future. Although to date all RMR contracts for Lennox have been for a period
of one year, the Board indicated it is prepared to impose a condition that any
future RMR contracts have longer terms if that would result in a more
cost-effective outcome.

    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: Paul Crawford, Ontario Energy Board, (416)

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