Bentley tells Onatrio Citizens it will “only cost 40 mill to move Oakville Gas Plant” …………. that figure could actually be over $700 Million!

Posted: October 10, 2012 in Uncategorized

What’s wrong with this picture? Chris Bentley our Minister of Energy, only weeks ago, publicly declared that the Ontario Government’s mistake of cancelling a gas plant in Oakville to protect the Liberal seats in that area would ONLY cost tax payers $40,000,000,00 in cancellation costs to Trans Canada for breaking the contract.

As if that wasn’t bad enough it is now coming to light that included in the contract were a few words that could actually increase these costs up to almost 3/4 of a BILLION DOLLARS!!!!

And it just seems to get worse…………………………………….. no wonder McGuinty is closing Provincial Parks, ending social programs that protect abused Women and Children and cutting back on Health Services!

Oakville gas plant cancellation costs ballooning, says analyst

Published on Wednesday October 10, 2012

ANDREW FRANCIS WALLACE/TORONTO STARBruce Sharp, an energy analyst with Aegent Energy Advisors, says a little-noticed section of the agreement to move the Oakville gas-fired power plant puts Ontario ratepayers on the hook for hundreds of millions in fees formerly paid for by TransCanada Corp.
John Spears Business Reporter

Ontario electricity users are on the hook for more than $700 million in extra fees because of the McGuinty government’s decision to move a gas-fired generator out of Oakville, says an energy consultant.

Provincial officials say that number is much too big.

However, one provincial source, who did not want to be named, concedes that the cost of moving the plant from Oakville to the site of the Lennox generating station near Bath, 210 kilometres east of Toronto, is $220 million more than the $40-million cost acknowledged by the province to date.

Energy consultant Bruce Sharp, who pegs the cost of the move at $700 million, says earlier estimates haven’t taken into account several huge items.

Sharp says the issues require further scrutiny.

“People are saying: “Let’s get the auditor general to look at this,’ and I agree,” he said.

The office of Energy Minister Chris Bentley was sticking with the $40-million cost Wednesday, and insisting that “the new plant will be an important part of Ontario’s energy mix.”

Nonetheless, after considering Sharp’s arguments for a day, the Ontario Power Authority, acknowledged Wednesday that “there will be additional ratepayer costs” — but it said it doesn’t yet know how much they’ll be.

The OPA is the independent government agency that negotiated the contract to move the TransCanada Corp. generator from Oakville to the Kingston area.

Sharp, a professional engineer who has worked for both hydro and gas utilities, says the biggest hidden cost in the deal is the province’s agreement to accept the cost of what’s known as “gas delivery and management services” costs, which he figures could add $346 million to the bill.

And a further $200 million or more comes from the decision to move the plant hundreds of kilometres to the east, says Sharp, who has also been an expert witness at the Ontario Energy Board for a variety of clients, including the Canadian Manufacturers and Exporters.

Sharp cites an OPA analysis prepared in 2009 supporting the Oakville location.

READ MORE HERE:

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Comments
  1. […] this is exactly what Bentley/McGuinty’s Ministry of Energy is telling Ontario citizens. Bentley stated publicly that it would only cost Ontarians $40 million dollars for the Oakvile cancellation but as an analyst points out: The cost transfer from plant owner […]

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