Ottawa Hydro has won a 40 year contract to expand power generation at Chaudiere Falls.

The deal was announced Friday morning at a news conference involving Ontario Energy Minister Bob Chiarelli and Hydro Ottawa President Bryce Conrad.

Construction of a new 20 megawat facility at Chaudiere Falls will begin next year. The new plant will produce enough electricitiy to power 20 thousand homes a year. The deal will also create 150 new construction jobs.

Hydro Ottawa owns six of the seven generating stations at Chaudiere Falls.