Article: Canada : Northland Power Income Fund plans gas-fired power plant for Saskatchewan.

Northland Power Income Fund says it will spend $145 million to build a natural-gas-fired power plant in Saskatchewan.

The income trust said it has signed a 25-year power purchase agreement with Saskatchewan Power Corp. to provide peaking power.

The 86-megawatt plant will be built near Spy Hill, Sask., about 200 kilometres east of Regina. Construction is expected to begin in June 2010 with commercial operations to begin no later than Dec. 1, 2011.

To pay for the new plant, Northland Power said it would raise $140 million in an offering of trust units and convertible debentures.

The fund said it has signed a deal with a group of ...

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