SOURCE: Northland Power Inc.

Northland Power Inc.

July 16, 2015 07:30 ET

Cochrane Power Begins Issuing Termination Notices to Employees

North Eastern Ontario's One-of-a-Kind Biomass and District Energy Facility's Contract to Produce Electricity Expired on May 11, 2015

COCHRANE, ON--(Marketwired - July 16, 2015) - Northland Power Inc. ("Northland") (TSX: NPI) (TSX: NPI.PR.A) (TSX: NPI.PR.C) (TSX: NPI.DB.B) (TSX: NPI.DB.C) today announced that on July 13, 2015, sixty days after Cochrane Power's contract expired, it began the process of issuing termination notices to employees. As previously announced, Cochrane Power's contract to generate electricity for Ontario's power grid expired on May 11th. Northland had kept the facility's workers employed in the hope that a new or temporary agreement for the plant could be established. The company has been able to transfer some of its employees at Cochrane Power to its other plants. It is also maintaining a skeleton staff for security purposes.

"We remain hopeful that we will be able to establish a new, long-term agreement with the Independent Electricity System Operator (IESO)," said John Brace, President, Northland Power Inc. "If we are successful, we will be in a position to re-hire our employees."

Northland developed this one-of-a-kind plant to solve a growing environmental problem - the forestry industry's steady accumulation of wood waste in North Eastern Ontario. Cochrane Power was designed to convert that wood waste into energy for the Ontario grid and, later, added a natural gas fired component to provide further operating flexibility. Waste heat from the facility was then captured and used as a heat supply for the local community centre.

"We are very grateful for the exceptional support we continue to receive for our re-contracting efforts from many local organizations including the municipality and the Board of Trade, local farmers, the forestry industry, and other affected businesses," added Brace. "We all know that Cochrane Power is a unique facility - in addition to generating electricity, it is an important economic engine for the region, and also supports the Government's environmental policies. Given the opportunity, we believe it remains possible to negotiate an agreement with the IESO that benefits Ontario's ratepayers, taxpayers, and the local stakeholders who depend upon us."

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 1,313 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, and 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 currently in construction.

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.

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