McGuinty has made deals with Energy suppliers that will ruin Ontario for decades!!!!!

Posted: October 1, 2012 in Uncategorized

No wonder this guy who calls himself “our Leader” is trying to stop spending OUR money on Health Care, Education, Disadvantaged women and children’s programs just to name a few……………

All our money is going out the door to his “energy buddies” like Trans Canada who has been promised it will make 3.3 BILLION $$$ no matter if it produces any energy or not…….Guaranteed!

 

Energy firms guaranteed revenue in sweetheart deals with Ontario 

KAREN HOWLETT

TORONTO — The Globe and Mail

Published Monday, Oct. 01 2012, 8:00 AM EDT

The Ontario government has inked a string of sweetheart deals with private-sector energy companies, promising them guaranteed revenue regardless of how much electricity they produce and sell into the market.

The practice began when the governing Liberals came to power in 2003, according to the Ontario Power Authority.

The power authority, a government agency, routinely signs deals with companies operating these new gas-powered plants, agreeing to pay them fixed prices regardless of how much electricity they produce, according to the documents and interviews with industry sources.

In some cases, the companies receive 100 per cent of their revenue for operating the plants at well below half their capacity. The cost is passed on to consumers.

The contracts have been shrouded in secrecy, with both government and company officials citing commercial sensitivity. But the government was forced to disclose reams of documents last week, after the controversy over its decision two years ago to pull the plug on building a plant in Oakville, west of Toronto.

In one example, Alberta energy giant TransCanada Corp is guaranteed revenue of $3.3-billion over the next two decades – no matter how much power it produces – in return for building the province’s third largest natural gas-fired plant in Eastern Ontario, the documents show.

Government officials said the natural gas plants supply backup electricity to ensure that the lights stay on during periods of high demand. They said companies would not build the plants without a firm prospect of recovering their construction costs and operating expenses.

But critics said the government’s clean energy strategy is ratcheting up consumers’ electricity costs for plants that often sit idle. One natural gas plant operated at only 25 per cent of its capacity last year, according to figures obtained by The Globe and Mail.

“Building these plants and guaranteeing a stream of revenue is a very expensive way to deal with peak power demand,” said Peter Tabuns, the New Democratic Party’s energy critic.

Energy consultant Tom Adams criticized the government’s lack of planning. Because there is no reliable forecast for the province’s long-term electricity needs, he said, private-sector players are unwilling to commit to big projects without guaranteed rates of return.

“The government doesn’t really know how much power we’re going to need,” Mr. Adams said.

The documents released on the TransCanada deal show that the company will receive revenue of $15,200 for each megawatt month of electricity, based on the capacity of the plant. That is well above the average of $13,187 in revenue for Ontario’s fleet of gas fired plants.

“Older plants that resulted from a competitive process typically are under $10,000,” says an Energy Ministry document. “Newer plants that were negotiated and procured in a time of shortage tend to be over $15,000.”

The TransCanada plant, originally slated for Oakville, will now be built in Lennox and Addington County, about 140 kilometres from Ottawa. The fixed monthly rate for the 900-megawatt plant translates into annual revenue of $164.2-million for the company, and $3.28-billion over the 20-year life of the contract.

READ MORE HERE:

In a related story the Trans Canada gas plant will basically close the Lennox Plant which operates in Eastern Ontario now. The present day Lennox Plant is state of the art and able to generate with oil OR gas…………………….but here’s the hook…………………….It only operates at about 25% capacity because the Province doesn’t need additional power, but McGuinty has offered up Lennox as a sacrificial lamb to appease Trans Canada……..so in effect we pay to have a gas plant built to replace a gas plant already built!

Maybe there could be a an interested law enforcement officer out there that just may be interested in pursuing an investigation into “fraudulent behaviour”?

New gas plant will put Lennox Station out of service

BY  ,QUEEN’S PARK BUREAU CHIEF Sept. 27th 2012

TORONTO – A gas plant first slated for Oakville will be built right beside a publicly-owned facility in Eastern Ontario which sat idle for much of last year, Tory MPP Randy Hillier says.

The Lennox Generating Station, operated by Ontario Power Generation, is a “beautiful, beautiful” plant which can produce up to 2,100 megawatts (MW) of electricity using either gas or oil, making it uniquely flexible and cost efficient, Hillier said.

But reduced demand for power — the area’s manufacturing sector has shrunk in recent years — means the plant is currently vastly under used, he said.

The Ontario government has announced that a TransCanada gas plant planned for Oakville, cancelled due to opposition from nearby residents, will be built beside the Lennox facility.

The government says there will be $40 million in unrecoverable costs for taxpayers.

Hydro ratepayers will kick in $210 million to pay for new turbines, but the government expects to recoup that expense over time.

READ MORE HERE:

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