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Statement From Ontario Minister Of Energy - September 24, 2012

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Statement From Ontario Minister Of Energy - September 24, 2012

Today, Chris Bentley, Minister of Energy, issued the following statement:

“I am pleased to announce that an agreement has been reached between the Ontario Power Authority and TransCanada Energy to relocate the proposed 900-megawatt natural gas plant originally planned for Oakville to lands at Ontario Power Generation’s Lennox Generating Station site near Bath, in eastern Ontario’s Lennox and Addington County.

I would like to thank the OPA, TransCanada and Ontario Power Generation for the work they have done over the past several months to reach this agreement.

The new site will take advantage of existing transmission lines and other infrastructure, as well as the expertise of local workers. The construction of the plant is expected to provide up to 600 construction jobs and approximately 25 permanent jobs.

The total costs that cannot be repurposed at the new site are approximately $40 million. This includes all payments made in relation to the original site, including the cost of engineering design and permits.

The gas turbines originally slated for use at the Oakville plant will be repurposed and used at the Lennox facility.  The OPA will purchase the turbines. TransCanada will receive less for the electricity the plant produces than originally agreed upon to offset the cost of the turbine purchase.

The decision not to move forward with the plant at the original Oakville site was made after hearing overwhelming concerns from local residents and local elected officials. We heard concerns from families and we responded.

This afternoon, in response to the Speaker’s ruling, we will submit all relevant documents related to the Oakville gas plant, and the cancelled plant in Mississauga, to the Standing Committee on Estimates, and also to both opposition parties.

We said we would release the documents, and sought only to ensure they were not released prematurely, at a time when their release could jeopardize these negotiations at a cost to taxpayers.

Over the coming days and weeks you will read and hear lots of numbers related to the cost of the plant relocation. The only accurate cost to taxpayers for this relocation is $40 million. 

Today’s relocation announcement helps support Ontario’s plan to modernize the province’s electricity infrastructure, clean up the air we breathe and end the use of coal by the end of 2014.”

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