Cochrane Power Scheduled to Stop Operating on May 11th

COCHRANE, ON--(Marketwired - May 07, 2015) - (TSX: NPI) (TSX: NPI.PR.A) (TSX: NPI.PR.C) (TSX: NPI.DB.B) (TSX: NPI.DB.C) At midnight on May 11^th, Cochrane Power will be forced to stop generating electricity for Ontario's power grid. That's when its current agreement with the Ontario Electricity Finance Corporation (OEFC) will terminate. Northland was granted an extension to May 11th from the agreement's original end date in January, 2015 to allow more time for Cochrane Power and the Independent Electricity System Operator (IESO) to negotiate a new long-term agreement. However, concurrent with that extension, the Minister of Energy directed the IESO to suspend all negotiations until the IESO had developed a strategy for power generators such as Cochrane Power across the province. The Minister directed the IESO to deliver that strategy in June, and then recently amended that to September, which is well past the May 11^th expiry of Cochrane Power's agreement. 

"We have been working very hard to ensure a future for this facility, but without an agreement to sell our electricity to the grid, we are forced to stop generating it," said John Brace, CEO, Northland Power. "It is difficult to understand why the facility has not been granted a further extension until the IESO's strategy is delivered and negotiations can be concluded. Cochrane Power supports the province's Long-Term Energy Plan; it is existing infrastructure, it is combined heat and power, and it uses biomass, a renewable resource, for power generation. The facility provides an environmentally sound way to use wood waste from local industry rather than diverting it to landfill. All this without adversely impacting the electricity ratepayer in Ontario." 

Cochrane Power uses wood chips to generate electricity, all sourced from the waste material of local mills such as Tembec's Cochrane facility and the just-opened Rockshield Engineered Wood Products factory. For the last 25 years, the power generation facility has been an integral part of the community. It provides many millions of dollars a year in direct impact to the local economy, and supports hundreds of well-paying local jobs. Cochrane Power also supplies heat to the Tim Horton Event Centre and is the single largest water customer for the Town of Cochrane.

Brace said, "This facility is critically important to North Eastern Ontario and its forestry and agricultural industries. We will continue to do everything we can, and are prepared to work with government to find a solution so that we can continue to help them achieve their goal of fostering a prosperous, sustainable Northern economy."

"We are not giving up," said Gary Huizing, the Cochrane-based Regional Manager of Northland Power. "Our staff will remain on the job as we continue to work hard to convince government to give us a new agreement or a further extension."

Huizing also said, "There are many great people in this community who have been delivering messages of support and urgency to government. We need them to continue the effort. It really helps."

ABOUT NORTHLAND
Northland is an independent power producer founded in 1987, and publicly traded since 1997. Northland develops, builds, owns and operates facilities that produce 'clean' (natural gas) and 'green' (wind, solar, and hydro) energy, providing sustainable long-term value to shareholders, stakeholders, and host communities.

The Company owns or has a net economic interest in 1,345 MW of operating generating capacity and 972 MW (682 MW net to Northland) of generating capacity under construction, including a 60% equity stake in Gemini, a 600 MW offshore wind project, an 85% equity stake in Nordsee One, a 332 MW offshore wind project, both located in the North Sea; as well as a 100 MW onshore wind farm in Grand Bend, Ontario. Northland's cash flows are diversified over four geographically separate regions and regulatory jurisdictions in Canada and Europe.

Northland's common shares, Series 1 and Series 3 preferred shares and Series B and Series C convertible debentures trade on the Toronto Stock Exchange under the symbols NPI, NPI.PR.A, NPI.PR.C, NPI.DB.B, and NPI.DB.C, respectively.