Energy firms guaranteed revenue in sweetheart deals with Ontario

by Karen Howlett, The Globe and Mail
The Ontario government has inked a string of sweetheart deals with private-sector energy companies, promising them guaranteed revenue regardless of how much electricity they produce and sell into the market. The practice began when the governing Liberals came to power in 2003, according to the Ontario Power Authority.

Nineteen natural gas-fired plants have been built in Ontario as part of the McGuinty government’s push to replace coal-fired electricity plants with cleaner sources of power. The plants accounted for about 15 per cent of the province’s electricity output last year.

The power authority, a government agency, routinely signs deals with companies operating these new gas-powered plants, agreeing to pay them fixed prices regardless of how much electricity they produce, according to the documents and interviews with industry sources. In some cases, the companies receive 100 per cent of their revenue for operating the plants at well below half their capacity. The cost is passed on to consumers.

The contracts have been shrouded in secrecy, with both government and company officials citing commercial sensitivity. But the government was forced to disclose reams of documents last week, after the controversy over its decision two years ago to pull the plug on building a plant in Oakville, west of Toronto. Read article

12 thoughts on “Energy firms guaranteed revenue in sweetheart deals with Ontario

  1. There is now so much evidence of corruption and outright crime on the part of the “governing” Liberals. I predict that with the resounding support vote which McG has just received, he will , with head held high, stage a gracious and humble exit as leader – and his party will, in turn, stage a grandiose lament. He will say that he has done his best, stuck to his principles, and enacted everything in his (abuse of) power to save the planet, despite the adversity and upheaval manufactured by less enlightened (read rural) Ontarians. And he will find another role in the creepy world of Agenda 21.

    Best of all – David Suzuki will pat him on the head and tell him what a good little boy he is.

    • I think the problem is that the Conservatives were required required to redo the “charge sheet”. The Ontario Liberals should have been charged with “Complete Indifference to Parliament”. It’s hardly the same thing as contempt.

      When parliament is run for personal benefit and you use the Order In Council procedure to run the government and issue regulations as opposed to writing law and you finance through warrant procedures you are “indifferent” to the requirements of the law and the legislature.

      Contempt is when you sneer at and abuse parliamentary process — “indifference” occurs when you are bored with all that time consuming procedure and simply “do what you want” — and don’t even bother to justify your actions — let alone tell the populace about the new laws and regulations.

  2. Can someone let me know what has happened to the Chris Bentley in contempt of parliament story? Is it over? I was following it on CBC, where in the first couple of days, it was the lead story on 99.1, Radio 1. Then nothing.

    • Liberals: – ‘coal is bad’

      The journey – discovering things………’trust’…………

      ‘[excerpt] Government house leader John Milloy reacted angrily to the accusations that the government did not release all the documents, saying members are supposed to be taken at their word.

      “We have provided the documents and the minister has signed an attestation to that affect. There was absolutely nothing redacted,” Milloy told reporters.’

      Read more: http://www.cp24.com/news/mcguinty-admits-missteps-on-gas-plants-1.970195#ixzz288rYxFcF

      The balance:
      ………………….. nothing to see, or do!
      ‘excerpt] Leone’s motion also calls on the government to reconstitute the Finance Committee so it can study all the documents on the gas plants and consider the matter of contempt against Energy Minister Chris Bentley.

      There are no legislative committees for the fall session of the legislature because the three parties cannot agree on their make up and who should chair them.’

      Public perception – is the new reality.
      …..as we continue to be entertained @ the local level of government.
      Bizarre – ……..the trust thing!

  3. No company will build a gas fired power plant unless they will make money on the plant. To do so would be foolish on their part. The present government should have known that backup power would be required to operate renewable energy projects and thus increase the costs of electricity production. But some believed the propaganda that renewable energy, provided there is enough of it, would not require backup power generation. Now Ontarians will be stuck will paying for all this foolishness. No wonder they don’t want to release these documents to the public.

  4. NoTricksZone, Oct.1,2012
    “Germany Abandons 1 Million Electric Cars Goal – Now Shifts Efforts To Propping Up Basic Electric Service”
    Electricity prices are high and the supply of power has become unstable.
    http://notrickszone.com

  5. A trusted name: McGuinty

    A message from the Ontario Power Authority (OPA): – the practice of sweetheart deals

    ‘[excerpt] The Ontario government has inked a string of sweetheart deals with private-sector energy companies, promising them guaranteed revenue regardless of how much electricity they produce and sell into the market.

    The practice began when the governing Liberals came to power in 2003, according to the Ontario Power Authority.’

    Get Rid of the OPA!
    ……and their wardrobe of – ‘sweatpants’

    • Imagine – ‘roaches’

      Exhibit A: …………’GET OFF ME’
      I did not agree – to the 3 sec. touch.

      ‘[excerpt] ………………according to the documents and interviews with industry sources. In some cases, the companies receive 100 per cent of their revenue for operating the plants at well below half their capacity. The cost is passed on to consumers.’

      Ugh!

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