* TransCanada to relocate power plant to eastern Ontaro
* Ontario to pay company C$40 million for costs
* 900-megawatt station in service by early 2017
CALGARY, Alberta, Sept 24 TransCanada Corp
, the country's largest power and pipeline company, will
build a 900-megawatt power plant in eastern Ontario after the
provincial government agreed to pay it C$40 million ($40.8
million) in costs for a canceled project, the Ontario Power
Authority said on Monday.
In its release, the OPA said TransCanada will build the
natural gas-fired power plant at the site of the 2,100 megawatt
Lennox oil and gas-fired generating station on the northern
shore of Lake Ontario, about 210 kilometers (130 miles)
northeast of Toronto.
The agreement comes after public pressure in 2010 pushed the
government to scuttle a previously approved plan by TransCanada
to build the power plant in Oakville, a Toronto suburb.
TransCanada, which could not be immediately reached for
comment, will receive the C$40 million to cover the cost of
engineering and design work that does not apply to the Lennox
The OPA said it expects the new plant to be in service by