An investment bank launched a sale process for a gas-fired combined-cycle facility in Ontario on behalf of its owners last week.

TD Securities began marketing the 875 MW Goreway Power Station in Brampton to potential investors on Nov. 9, say deal watchers.

The sellers are two Japanese entities—JERA Co. and Toyota Tsusho Corp.

JERA is a joint venture between Chubu Electric Power Co. and TEPCO Fuel & Power.

Officials at Toyota Tsusho in Nagoya, Japan, and JERA America in New Jersey and Houston, did not respond to requests for comment by press time.

The Goreway plant is understood to be the second largest gas-fired project in Canada. The largest—the 1,005 MW Greenfield Energy Centre in St. Clair Township, also in Ontario—also happens to be for sale (PFR, 8/23).


The Goreway project was originally financed in 2006 by Sithe Global Power, a developer backed by Blackstone Group and Reservoir Capital, on the basis of a 20-year power purchase agreement with the Ontario Power Authority.

TD and RBC Capital Markets co-led on the C$936.56 million ($816.6 million at the time) construction-to-five-year-term loan (PFR, 4/16/06).

The debt financing was twice oversubscribed, with 29 banks participating. It was the first major generation project to be built in Ontario for over 25 years

SNC Lavalin was the engineering, procurement and construction contractor on the project, which was fitted with General Electric and Siemens turbines and brought online in June 2009. 

Sithe sold 25% stakes in the project to Chubu and Toyota Tsusho in September of that year and divested the remaining 50% to the same two investors in March 2011.

Chubu transferred its 50% interest in Goreway to JERA along with the rest of its generation business in July 2016.


In the meantiume, the project had been refinanced in July 2013, with TD acting as administrative agent on the C$832 million transaction. 

The plant operates primarily during intermediate and peak demand periods, using natural gas from an Enbridge Gas Distribution pipeline.


Last September, the Goreway partnership was accused of “gaming” market rules by the Ontario Energy Board’s Market Surveillance Panel, following a three-year investigation. 

Goreway was found to have taken advantage of “an elastic definition of recoverable O&M costs”, claiming operations and maintenance costs totaling more than $100 million over three years—more than the combined O&M claims from all other gas-fired generators in the province—most of which it has since repaid.

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