Power plant cancellation cost claims unravel

For immediate release:
November 29, 2012

Simcoe – Analysis of the Oakville and Mississauga power plant cancellations has revealed more evidence the McGuinty government has not told Ontarians the full truth about the related costs taxpayers are left to pick up.

Haldimand-Norfolk MPP Toby Barrett says a recent estimate from Former Ontario Power Authority CEO Jan Carr pegging the estimated cost of the Oakville and Mississauga seat saver program to “conservatively” be at least $800 million is the tip of the iceberg.

Carr is the latest in a series of well-respected voices within the energy sector to refute the Liberals’ claim that the power plant cancellations “only” cost Ontarians $230 million

“There is no mystery as to why Mr. McGuinty chose to prorogue parliament,” Barrett indicated. “Evidence of the true cost of this seat-saving gas-plant experiment is coming to the fore – the waste of around a billion dollars for political gain cannot be hidden.”

Previously, analyst Bruce Sharp pegged the costs for Oakville at $733 million alone. Expert Tom Adams’ analysis of the 56,000 documents released by the government puts the total price tag for both plant cancellations at around $1.3 billion.

“There is an underlying theme that is prevailing here in all of these examinations of the power plant cancellations,” stated Opposition Energy Critic Vic Fedeli. “Clearly, Dalton McGuinty’s flimsy position doesn’t hold water, and Ontarians know that.”

The new cost estimates follow news that S & P’s credit outlook for Ontario Power Generation is being downgraded from stable to negative.

In its release yesterday, S & P said the negative outlook for OPG “reflects the negative outlook on the utility’s shareholder, the Province of Ontario.”  In April, Moody’s downgraded its credit rating for the Province of Ontario to A1 from A3, which resulted in downgrades for a number of linked issuers as well, including Hydro One.

For more information, please contact MPP Toby Barrett at: (416) 325-8404,
(519) 428-0446 or 1-800-903-8629