KAWARTHA LAKES-The Orillia Power Generation Corporation (OPGC), which is wholly owned by the City of Orillia, acquired 100 per cent of Shaman Power Corporation for $11 million in the fall of 2020. Shaman owned the Fenelon Falls Generating Station.
“Orillia has a long, proud history of generating electricity in the province and the acquisition of Shaman’s three power stations by OPGC further solidifies Orillia Power as a key player in the renewable energy sector,” said Mayor Steve Clarke. “This strategic investment will further contribute to the long-term growth and stability for the generation corporation, which will translate into increased value for the City of Orillia.
Hydroelectricity has a long history in Fenelon Falls, as it was one of the first communities to utilize the renewable energy source, as far back as 1894. The ratepayers of Fenelon Falls approved the construction of a new station, which opened in 1905, providing the village of Fenelon Falls with hydroelectricity, until 1971, when the plant was struck by lightning and demolished.
A new Fenelon Falls Generating Station was opened in 1997, as collaboration between Consolidated Hydro Ltd. of Toronto, the Trent-Severn Waterway, and the Council of the Village of Fenelon Falls. This plant has a maximum output of a whopping 2.6MW (2600 kilowatts). It supplies electricity to approximately 2,000 homes in the City of Kawartha Lakes (depending on the time of the year). It’s unclear when it was sold to Shaman Power.
The acquisition is expected to result in about $2 million of additional annual revenue for Orillia Power, but that isn’t a guaranteed amount according to the City of Orillia.
OPGC sells all of the electricity that it generates into the Ontario power grid, pursuant to long-term contracts. The growth of OPGC comes on the heels of the sale of the Orillia Power Distribution Corporation (OPDC) to Hydro One Inc. for $26.35 million on Sept. 1, 2020.
Hydro One plans to construct a provincial warehouse and a regional operations centre in the Horne Business Park in West Orillia, adjacent to the primary Ontario Grid Control Centre currently under construction on the site. These investments will result in job creation and approximately $200 to $300 million in near-term economic impact.
The Shaman acquisition by OPGC adds three generating stations located in Fenelon Falls, Elora and Marmora, Ontario to their three existing Ontario waterpower stations (Swift Rapids, Minden and Matthias) for a combined renewable generation capacity of 20.1 megawatts (MW) for the corporation.
“We are very pleased that this rare opportunity to grow our generation business has come to fruition. We look forward to integrating the three additional generating stations into our existing operations and expanding our presence in the renewable energy sector, which will ultimately result in greater value for our sole shareholder – the City of Orillia,” said Grant Hipgrave, President and Chief Executive Officer of OPGC.
