Company Bio

Overview

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Northstone Power Corp. (hereafter referred to as “NPC”) is an Alberta based independent power producer with a 12 MW natural gas power plant located near Elmworth, Alberta, 45 minutes southwest of Grande Prairie.

The Elmworth Generation Station is a 7,200 square foot facility that currently houses four (with fifth unit currently being reassembled) 3MW Cooper Bessemer LSV16 Reciprocating Engines and generator sets that each generate 4,200 HP running at 327 rpm. The enclosed facility provides a balanced ambient temperature resulting in a fairly consistent heat rate of 11.5 GJ/MWh throughout the year. The facility was commissioned in 2001 and has been producing electricity when economically viable on an hour by hour basis due to the economics inherent in an electricity “peaking unit”.
The facility generates electricity at 7.2 kV and steps it up to 25kV as it passes through to ATCO Substation 631s. At this facility, NPC has secure line capacity to delivery up to 25 MW of electricity directly to the Alberta Integrated Electrical System (AEIS). At the Elmworth facility, NPC is entitled to a line loss credit, which is also paid by the AESO. The credit is paid to generation facilities in areas of high power usage and low power production, which the Elmworth facility qualifies for.
The gas supply for the Elmworth facility is procured through a secure long term floating price fuel supply contract from an adjacent gas plant. The gas is supplied by ConocoPhillips Resources (formally Burlington Resources), who operates a large natural gas processing plant adjacent to the company’s power plant, and is in place until December 31, 2012; a contract renewal meeting for the gas supply contract is scheduled for Q1 2012. The ConocoPhillips gas plant produces significantly more gas on a daily basis that is required by the NPC contract and has a life expectancy in excess of 30 years. The contract has two distinctive advantages over most other gas contracts; 1. There is no stand by charges i.e. the company only pays for fuel gas it consumes. 2. There is no pipeline charge associated with the cost of the fuel as NPC owns the fuel gas pipeline on their property (ConocoPhillips owns the part of pipeline on their property and the two facilities are 0.5km apart).

Rads 2

NPC has an advantage over larger electricity generators in the Province because the relative size of the output and the flexibility it provides for revenue optimization. Given the structure of the generation assets within the facility, the facility is able to structure the energy offers in a manner that provides ultimate flexibility in generation. This flexibility not only allows for strategic posturing in the next day generation merit order bidding process, but also provides the foundation for revenue optimization. The flexibility provided by the open ended bidding structure allows the company to focus on the timing of generation, specifically when the economics for generation is high enough to yield a positive return, thus operating as a merchant peaking facility.

The Company has installed an automated computer system which monitors the system marginal pool price every five minutes and alerts operators and administrators when the revenue power price is in excess of the production costs. To further optimize this process, the Company, in conjunction with subject matter experts URICA Energy Management Ltd., also engages in sophisticated energy portfolio management to opportunistically hedge components of supply and generation to lock in favorable heat rates for a portion of their exposure. This, in combination with participation in the Ancillary Services market, allows NPC to fully optimize the facility.

Corporate Information

Northstone Power Corp., is incorporated under the laws of the province of Alberta.

Head Office

15D Alberta Avenue, PO Box 5203
Spruce Grove, Alberta, Canada T7X 3A3
P: 780.960.2330 F: 780.960.9293

Facility Location

Latitude: 55° 2’50.74″N Longitude: 119°38’0.07″W