It is costing $180-million for the Ontario government to cancel and relocate an unpopular Mississauga power plant the Liberals killed during the past election.
On Tuesday, Energy Minister Chris Bentley disclosed details of a controversial deal that will see the 300-megawatt Greenfield South Power plant move to the Lambton Generating Station site, near Sarnia.
It’s not yet clear whether taxpayers or hydro ratepayers will have to foot the $180-million bill.
“The agreement was concluded yesterday between the Ontario Power Authority and Greenfield South Power,” Mr. Bentley told reporters. “I expect there will be discussion in the future about the allocation of those costs.”
The cancellation costs include $85-million already spent on building, designing and obtaining permits for the Mississauga location. Another $88-million will be paid to EIG, the financier of the Greenfield South Project, in an early termination settlement, plus $7-million in site-specific costs. The Energy Ministry says the price tag could have been higher, had it not recovered $85.5-million in equipment, material plus engineering and architecture work that can be put toward the new facility.
The $180-million does not include the cost of building a new facility at Lambton, the ministry said.
Construction of the plant is expected to generate up to 200 jobs and will be up and running by 2017.
Opposition parties pounced on the revelations, accusing the Liberals of cancelling the plant in the face of opposition from Mississauga and Etobicoke residents in order to save seats in last fall’s provincial election. The government also scrapped another plant proposed for nearby Oakville the previous year.
“It’s either going to be on your tax bill or your hydro bill,” said NDP energy critic Peter Tabuns. “In either event, it’s a scandal. It’s completely outrageous. The minister should have been ashamed of himself, the premier should be ashamed, and the people of Ontario should be incredibly angry.”
Vic Fedeli, the Progressive Conservative’s energy critic, said Liberal campaign staffers are now writing Ontario’s energy policy.
But Mr. Bentley insisted that the government only had a change of heart after listening to the “very strong objections” of local residents.
“As soon as we made the announcement about our intention to relocate the gas plant, it was followed very shortly thereafter by statements and commitments by both of the other parties that they would not have a gas plant on that site,” he said.
Work on the Mississauga plant continued for weeks after the Oct. 6 election, even though the government made it clear the project would have to be located elsewhere.
Toronto Deputy Mayor Doug Holyday, who represents the Etobicoke ward that would have bordered the site, welcomed the relocation decision, but lamented the $180-million “mistake.”
“I would have thought they would have researched sites and done what they had to to make sure they knew where it was going before they wasted that kind of money,” said Mr. Holyday. “It’s a very costly mistake.”
The Canadian Press, with files from Natalie Alcoba, National Post
Mississauga power plant relocation to cost Ontario taxpayers $180-million | Posted Toronto | National Post
On Tuesday, Energy Minister Chris Bentley disclosed details of a controversial deal that will see the 300-megawatt Greenfield South Power plant move to the Lambton Generating Station site, near Sarnia.
It’s not yet clear whether taxpayers or hydro ratepayers will have to foot the $180-million bill.
“The agreement was concluded yesterday between the Ontario Power Authority and Greenfield South Power,” Mr. Bentley told reporters. “I expect there will be discussion in the future about the allocation of those costs.”
The cancellation costs include $85-million already spent on building, designing and obtaining permits for the Mississauga location. Another $88-million will be paid to EIG, the financier of the Greenfield South Project, in an early termination settlement, plus $7-million in site-specific costs. The Energy Ministry says the price tag could have been higher, had it not recovered $85.5-million in equipment, material plus engineering and architecture work that can be put toward the new facility.
The $180-million does not include the cost of building a new facility at Lambton, the ministry said.
Construction of the plant is expected to generate up to 200 jobs and will be up and running by 2017.
Opposition parties pounced on the revelations, accusing the Liberals of cancelling the plant in the face of opposition from Mississauga and Etobicoke residents in order to save seats in last fall’s provincial election. The government also scrapped another plant proposed for nearby Oakville the previous year.
“It’s either going to be on your tax bill or your hydro bill,” said NDP energy critic Peter Tabuns. “In either event, it’s a scandal. It’s completely outrageous. The minister should have been ashamed of himself, the premier should be ashamed, and the people of Ontario should be incredibly angry.”
Vic Fedeli, the Progressive Conservative’s energy critic, said Liberal campaign staffers are now writing Ontario’s energy policy.
But Mr. Bentley insisted that the government only had a change of heart after listening to the “very strong objections” of local residents.
“As soon as we made the announcement about our intention to relocate the gas plant, it was followed very shortly thereafter by statements and commitments by both of the other parties that they would not have a gas plant on that site,” he said.
Work on the Mississauga plant continued for weeks after the Oct. 6 election, even though the government made it clear the project would have to be located elsewhere.
Toronto Deputy Mayor Doug Holyday, who represents the Etobicoke ward that would have bordered the site, welcomed the relocation decision, but lamented the $180-million “mistake.”
“I would have thought they would have researched sites and done what they had to to make sure they knew where it was going before they wasted that kind of money,” said Mr. Holyday. “It’s a very costly mistake.”
The Canadian Press, with files from Natalie Alcoba, National Post
Mississauga power plant relocation to cost Ontario taxpayers $180-million | Posted Toronto | National Post
