TORONTO — The province says new legislation will prevent the owners of a cancelled wind project from suing the government.

It’s the latest news in a quickly developing story that started with the unexpected announcement on Tuesday that the government would cancel a nearly decade-old wind energy contract as one of its first orders of business. That sparked a series of responses from wpd Canada — the company behind the project — including a threat that Ontario would have to make it whole for more than $100 million in costs.

Tory House Leader Todd Smith wouldn’t go into more details and he wouldn’t say exactly when the legislation will come, but it’s expected in the next few days as the new government starts its first sitting.

[READ MORE: Cancelled wind farm to cost Ontario ratepayers $100 million plus: Company]

The White Pines Wind Farm project was first approved in 2009. The final stage of construction is underway for the turbines that were supposed to start adding electricity to the grid as of September. One of the nine turbines has already been installed. The project is in Prince Edward County, which is in Smith’s riding.

The president of wpd Canada has said Ontario would be “on the hook” for its costs if the cancellation goes ahead. But Smith said legislation will prevent them from suing.

“They’re not going to be able to do that,” Smith told reporters after a cabinet meeting on Wednesday. “It’ll all be laid out in the legislation and more information is going to come out over the coming days, but this is by far in the best interest of the taxpayers and the ratepayers of Ontario.”

“It’s ratepayers that are going to come out way ahead on this,” Smith said following repeated questions on what if any costs Ontario would incur for the cancelled contract.

[READ MORE: Ford government says cancelling wind farm won’t cost taxpayers]

Shortly after the German company that owns wpd Canada issued a statement warning that cancelling the project would be a “fatal signal to the entire economy.”

“Trust in the rule of law and investment security in Ontario would be trampled underfoot if the abrupt abandonment of the wind farm project, which is in the middle of construction, was confirmed” said wpd board member Hartmut Brösamle in a statement. “A halt to construction without warning from the ministry would have significant economic consequences for all involved parties.”

Speaking to reporters earlier in the day Smith did not directly answer a question about the signal cancelling the contract sends to other companies looking to do business with the government.

Follow @MariekeWalsh