Bentley and McGuinty state Oakville Gas Plant move to cost us $40 million…….. analyst explains why it’s over $700,000,000.00!!!

Posted: October 14, 2012 in Uncategorized

When someone states unequivocally that “this is the truth” and the research proves that the statement was wrong on all fronts, then the original statement is an “out and out LIE”!

LIE: a false statement made with deliberate intent to deceive; an intentional untruth; a falsehood.

As if a LIE has to be explained to anyone who has had even one ounce of education!

But 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 TransCanada Corp. to the OPA – or, in effect, to electricity ratepayers – is difficult to find. It’s in clause 2 (f) of a schedule to the agreement between the Ontario Power Authority and TransCanada.

Now contempt charges are being pursued in Parliament by the Opposition for Bentley, but the other players that assisted Bentley in this LIE should also be included in the contempt charges.

Anything less is just another INSULT to Ontario Citizens!

INSULT:  …intransitive verb. archaic: to behave with pride or arrogance : vaunt. transitive verb: to treat with insolence, indignity, or contempt

Oakville gas-plant closure will cost $700m: Analyst

10/11/2012 Power Engineering

Ontario electricity users are on the hook for more that $700 million in extra fees because of the government’s decision to move a gas-fired generator out of Oakville after residents complained.

The province has acknowledged that moving the TransCanada Corp. plant from Oakville to the site of the Lennox generating station near Kingston, will cost an extra $40 million.

But energy consultant Bruce Sharp says previous estimates of the cost of moving the plant haven’t taken into account several huge items not explicitly costed in the most recent agreement.

He says the issue requires further scrutiny:

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

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.

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

“If a plant were located outside the southwest GTA, the local transmission infrastructure upgrades costs would increase by about $200 million,” the OPA said at the time.

By the time the plant is built, those costs are likely to be $250 million, Sharp estimates.

But the gas delivery and management fees are the biggest factor, and one that hasn’t garnered much attention.

“It’s because nobody put any kind of a number on it, and because it’s such an obscure issue, it’s not going to get much attention,” Sharp said.

The cost transfer from plant owner TransCanada Corp. to the OPA – or, in effect, to electricity ratepayers – is difficult to find. It’s in clause 2 (f) of a schedule to the agreement between the Ontario Power Authority and TransCanada.

READ MORE HERE:

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  1. […] Bentley and McGuinty state Oakville Gas Plant move to cost us $40 million…….. analyst explains w… […]

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