TORONTO - An American energy investment firm has slapped the Ontario government with a $300 million lawsuit over the cancelled gas-fired electricity plant in Mississauga.

Ontario Energy Minister Chris Bentley says in a statement that the government will vigorously defend itself against the claims by EIG Management, which invests in energy projects and infrastructure.
”Ì understand that the Ontario Power Authority and Greenfield continue to discuss the options for the plant,” the minister`s statement says, providing no further comment because the matter is before the courts.

The Ontario Liberal government announced half way through the fall election campaign and after construction had begun that the controversial Greenfield South Power plant would be moved to another location.

The plant was strongly opposed by many residents throughout the area. Opposition parties argued the decision was made to save the seats of several Liberal MPPs.

The Liberals said new development in the area, including condos, had made the site unsuitable for a gas plant.

Construction on the plant continued well after the Oct. 6 election and into November before it finally came to a halt.

NDP Energy Critic Peter Tabuns said it`s unfair that taxpayers or hydro ratepayers might be on the hook for the cancellation costs.

The Liberal government should never have approved the plant in the first place, and certainly shouldn’t have waited until it was already under construction and in the middle of an election campaign to call a halt to the project, Tabuns said.

“Ì think the Liberals should be looking at claiming this as an election expense,”` Tabuns said. “`This is quite staggering... We`re talking about a very expensive mistake.”

The Ontario Liberals previously cancelled an equally unpopular Oakville gas-fired electricity plant but it`s still unclear what costs are involved in that decision.

Tabuns said the two cancelled projects could end up costing well over $1 billion according to at least one estimate.

Province sued over cancelled Mississauga electricity plants | Ontario | News | Toronto Sun