So that the Liberals could get some votes 
The Liberals’ decision to cancel a gas-fired power plant in Oakville days before a provincial election was held cost taxpayers about $675 million, according to Ontario’s auditor general.
That price tag could balloon by another $140 million once gas is delivered to its costly new site in Napanee. This figure takes into account a possible increase in delivery tolls.
Together with the $275 million cost of a similarly controversial decision to cancel a power plant in Mississauga, the total loss to taxpayers exceeds $1 billion.
[h=2]Related Stories[/h]
[h=2]Photos[/h]
Ontario Auditor General Bonnie Lysyk talks about her report on the costs of cancelling the Oakville gas plant project at the legislature at Queen's Park in Toronto on Tuesday, Oct. 8, 2013. (The Canadian Press/Frank Gunn)
Ontario’s auditor general Bonnie Lysyk’s report was released Tuesday afternoon, confirming what was long speculated – the Liberal government’s initial estimate of the cancellation costs was significantly lower than what Ontarians would have to pay.
The Liberals have said the cost of cancelling the Oakville plant to taxpayers would be about $40 million, but the government’s partner, the Ontario Power Authority, said it would likely be around $310 million.
Opposition parties have long said the cancellation of the Oakville plant cost taxpayers at least $585 million and that the Liberal government knew about the price tag all along.
The report says that in fact, the total cost of cancelling the power plant could reach $1.112 billion. However, it is expected that there will be about $437 million in savings, bringing the net cost down to about $675 million over the next 20 years.
Taxpayers would be on the hook for $40 million of that cost while the rest -- $635 million – would have to be paid by electricity ratepayers.
In her report, Lysyk said the government made some “questionable decisions.”
“This cost is significantly more than may have been necessary,” she said in a news release attached to the report. “A number of questionable decisions made along the way contributed to this situation.”
Among those decisions:
The Liberal government has faced intense scrutiny for their decision to cancel the Oakville plant and a power plant in Mississauga leading up to the 2010 provincial election. Communities in both Oakville and Mississauga fervently opposed the plants’ construction. Critics say the Liberals canceled the construction in order to win seats in those ridings.
A report by the auditor general released in April 2013 found the cost of cancelling the plant in Mississauga was about $275 million --- about $85 million higher than what the Liberals said it cost.
The OPA’s response to Lysyk’s findings was included in the report.
“Although the OPA’s and the Auditor General’s cost estimates are different, we continue to support our assumptions as this difference, as set out in the report, is for the most part attributable to the assumptions used to calculate future costs,” the statement says.
The Liberals’ decision to cancel a gas-fired power plant in Oakville days before a provincial election was held cost taxpayers about $675 million, according to Ontario’s auditor general.
That price tag could balloon by another $140 million once gas is delivered to its costly new site in Napanee. This figure takes into account a possible increase in delivery tolls.
Together with the $275 million cost of a similarly controversial decision to cancel a power plant in Mississauga, the total loss to taxpayers exceeds $1 billion.
[h=2]Related Stories[/h]
- AG report on cancelled Oakville gas plant out Oct. 8
- Report on true cost of nixed gas plant to be done early fall: Ontario auditor
- PCs demand answers ahead of release of AG report on cancelled gas plant
[h=2]Photos[/h]
Ontario Auditor General Bonnie Lysyk talks about her report on the costs of cancelling the Oakville gas plant project at the legislature at Queen's Park in Toronto on Tuesday, Oct. 8, 2013. (The Canadian Press/Frank Gunn)
Ontario’s auditor general Bonnie Lysyk’s report was released Tuesday afternoon, confirming what was long speculated – the Liberal government’s initial estimate of the cancellation costs was significantly lower than what Ontarians would have to pay.
The Liberals have said the cost of cancelling the Oakville plant to taxpayers would be about $40 million, but the government’s partner, the Ontario Power Authority, said it would likely be around $310 million.
Opposition parties have long said the cancellation of the Oakville plant cost taxpayers at least $585 million and that the Liberal government knew about the price tag all along.
The report says that in fact, the total cost of cancelling the power plant could reach $1.112 billion. However, it is expected that there will be about $437 million in savings, bringing the net cost down to about $675 million over the next 20 years.
Taxpayers would be on the hook for $40 million of that cost while the rest -- $635 million – would have to be paid by electricity ratepayers.
In her report, Lysyk said the government made some “questionable decisions.”
“This cost is significantly more than may have been necessary,” she said in a news release attached to the report. “A number of questionable decisions made along the way contributed to this situation.”
Among those decisions:
- The premier’s office, held by Dalton McGuinty at the time, assured TransCanada Energy Ltd. (TCE) that they would be compensated for the full financial value of the Oakville contract. That ignored the protections that existed in the contract that would have minimized some of the damages that needed to be paid to the builder.
- The province and the Ontario Power Authority agreed to arbitration terms that favoured TCE and waived the protections that were in place under the original contract with OPA.
- Ontario’s energy minister instructed the new plant be built in Napanee – a site that proved to be expensive. The report says the cost of transporting natural gas to that location costs significantly more as well as the cost of transmitting electricity back to southwest GTA (where Oakville is located) where there is a need for power.
The Liberal government has faced intense scrutiny for their decision to cancel the Oakville plant and a power plant in Mississauga leading up to the 2010 provincial election. Communities in both Oakville and Mississauga fervently opposed the plants’ construction. Critics say the Liberals canceled the construction in order to win seats in those ridings.
A report by the auditor general released in April 2013 found the cost of cancelling the plant in Mississauga was about $275 million --- about $85 million higher than what the Liberals said it cost.
The OPA’s response to Lysyk’s findings was included in the report.
“Although the OPA’s and the Auditor General’s cost estimates are different, we continue to support our assumptions as this difference, as set out in the report, is for the most part attributable to the assumptions used to calculate future costs,” the statement says.
