Canadian Hydro Developers Inc. has been forced to delay the start-up of an Ontario wind power project by a year, a move that will increase the cost by nearly 4 percent, it said on Monday.
Canadian Hydro said longer-than-expected approval for the Melancthon II wind project has pushed the in-service date to June 30, 2008, and the cost to C$275 million ($241 million).
The move will not affect its 20-year supply contract with the Ontario Power Authority, the company said.
It blamed the delay on the provincial environment screening process, which is now being conducted at a higher administrative level after the environment ministry received letters of concern.
Canadian Hydro said it still expected to win the necessary government approvals.
The company's shares were up 10 Canadian cents at C$5.25 on the Toronto Stock Exchange on Monday afternoon.