The 2010 decision to cancel a planned gas-fired power plant in Oakville and move it to Napanee may cost Ontarians $675 million, says Auditor General Bonnie Lysyk, and that figure could rise by up to another $140 million for gas deliveries to the new site.
“This cost is significantly more than may have been necessary,” Lysyk said after releasing a Special Report on the cancellation costs. “A number of questionable decisions made along the way contributed to this situation.”
The 24-page Special Report released on October 8, 2013 examined actions of the Ontario Power Authority (OPA), the Ministry of Energy, and the Premier’s Office in negotiations with the builder, TransCanada Energy Ltd. It estimates that the total costs of cancelling the plant could reach $1.112 billion, but would be offset by estimated future savings of $437 million, for a net cost of $675 million over 20 years. However, that total could rise by another $140 million because of a possible increase in tolls relating to the delivery of gas to Napanee.
To read the Special Report please click here