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