Cancelled gas plants will cost Ontario taxpayers $828-million, energy expert says

gas plantNational Post
The cost of cancelling two gas plants in Oakville and Mississauga is closer to $828 million, more than three times what the governing Liberals insist taxpayers will bear, an energy expert said Wednesday.

The cost of the Oakville plant — which was cancelled in 2010 — is about $638 million, not $40 million as the Liberals have said, Bruce Sharp told a legislative committee that’s looking into the gas plant cancellations. The mechanical engineer, who says he’s spent 25 years in the energy sector, said relocating the plant will cost $40 million, but there are extra costs, said Sharp, who works for Aegent Energy Advisors. He’s pegged gas delivery and management costs at $313 million and transmission costs at $359 million.

“My view is that there are so many people making money in so many different ways in the sector, that when something goes wrong, no one wants to talk about it,” he told the committee. “When the Oakville settlement details were made public in September, it was clear to me that the additional costs quoted of $40 million was low, so I felt the whole subject deserved some attention.”

Sharp said he agreed that the cost of relocating another plant in Mississauga will cost about $190 million, but that could have been at least $28 million lower because it will cost less money to deliver natural gas to its new site in Sarnia. It’s unfortunate that Ontario is seeing the “negative outcomes” of abandoning power system planning, he said. Read article

11 thoughts on “Cancelled gas plants will cost Ontario taxpayers $828-million, energy expert says

    • Things don’t bother you if you don’t have a conscience or any sensitivity, so probably very well I’d think

  1. It is time for some tax recovery. Remove the tax assessment cap of 40k per megawatt and tax IWT at their full value. This should result in hundred(s) fold increases in taxation revenues back to the districts that have been decimated by these monstrosities – CFFWT ( citizens for fair windmill taxation )

    • Citizens For Fair wind Turbine Taxation – CFFWTT.
      Sorry, Laryy, windmills are the cute structures to be found in Holland.

      • Ok – but by my definition it would be “fair” to give those cute little guys a break.

    • By and large these IWT projects are heavily leveraged which means investors and lenders interests will come before rate payer interests will. In other words there may not be that much free money in a project left for rate payers to get.

      • Most of these renewable enrgy projects are built with borrowed money and these suppliers of the money will get their’s first.

      • This is the reason why the $40K cap was put in so locals couldn’t raise the taxes on IWTs. High local taxes would drive away financing and investmnet money for renewable projects.

      • To all three of your points – these are the exact reasons now is the time to remove the temporary assessment cap.

      • There are so many people who still don’t know that the vast majority of renewable energy projects are built with borrowed money.
        If locals were allowed to tax these projects at the rates they should be taxed then the financing sources for these projects would likely dry up.
        Most of the time the quick big money on renewable energy projects is made by selling these projects to other parties. The lenders get paid back and the rest is profit on the project.
        Some projects are developed just so they can be sold for a profit.

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