Ontario Community Newspapers

Oakville Beaver, 18 Jul 2012, p. 7

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Oakville power plant cancellation cost still unknown By David Lea OAKVILLE BEAVER STAFF While the Province is reporting the cancellation of the Mississauga gas-fired power plant will cost $190 million, there is still no word on how high the scrapping of the Oakville power plant will run. Oakville MPP Kevin Flynn said TransCanada and the Province are continuing to discuss suitable compensation for the cancellation of the 900-megawatt gas-fired power plant, which was proposed for the Ford-owned lands of 1500 Royal Windsor Dr. Flynn also said there were differences between the two projects resulting in different arbitration timeframes. "The power plant in Mississauga had all its approvals in place. The city didn't want it, the Province didn't really want it, but it met the criteria, it had gone to the OMB (Ontario Municipal Board) and the city had lost at the OMB," said Flynn. "(For the Oakville power plant) there are a variety of opinions out there. Some will tell you they had their approvals here already. Some will tell you they were never going to get approvals to build here and I'm sure that is all coming out in the discussions." Flynn also pointed out the two power plants were being put together by two completely separate companies with TransCanada responsible for the Oakville power plant and Greenfield South Power responsible for the Mississauga plant. It should also be noted the Mississauga proposal called for a 280-megawatt power plant while the Oakville proposal called for a 900-megawatt facility. The Province announced the demise of the Oakville power plant in early October 2010. The decision followed months of community demonstrations against the power plant with opponents stating the proposed facility was far too close to area homes and schools. The Town of Oakville also passed legislation hindering the power plant's development. In the end, Energy Minister Brad Duguid said the Province had put together a new Long Term Energy Plan and found the Oakville power plant was no longer needed. Described as a $1.2-billion project, construction on the Oakville gas plant had yet to begin at the time of cancellation, however, TransCanada had already ordered large pieces of equipment for the project. It remains unclear whether TransCanada will be compensated monetarily or in some other way, such as being given a contract by the Province to build a power plant somewhere else. No timeline has been provided as to when the consequences of the cancellation will be made public. Despite the possible fallout, Flynn said his opinion on the power plant has not changed. "It was the wrong thing for the people of Oakville and that's who I work for," he said. In March 2011, the Town received nearly $500,000 in compensation from TransCanada for legal costs the Town incurred during its fight against the power plant. The Town incurred approximately $782,000 when TransCanada challenged various bylaws the Town put in place to block the power plant. TransCanada pulled out of these legal proceedings when the power plant project was cancelled and as the successful party, the Town was awarded a portion of its legal costs. The Province announced the cancellation of the Mississauga power plant, proposed for an area northwest of Sherway Gardens, in 7 · Wednesday, July 18, 2012 OAKVILLE BEAVER · www.insideHALTON.com October 2011, shortly before the provincial election. The Province said it listened to residents' opposition to this plant and decided to relocate it to Ontario Power Generation's Lambton generation station site. In a recent announcement, Finance Minister Dwight Duncan said the cancellation cost $190 million, of which $180 million will be borne by the taxpayer. How the remaining $10 million will be dealt with has yet to be decided. 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