Post Script Note: I am going to keep track, under this note, of the other costs that come to light in view of Dalton McGuinty’s Liberal cancellation of the 2 Power Plants days before the recent Provincial Election – included will be costs related to their misguided Green Energy Program:
- While this is heating up, our esteemed leader is heading out on a trade mission to China; i.e. leaving his Energy Minister Chris Bentley to Twist in the Wind. Some Leader. Would you do that knowing Bentley was covering up on your order to do so?
- first, I should have mentioned below that the Province of Ontario – although paying up to 82 cents per kwh – to Solar producers – it must sell “surplus” power each year to other jurisdictions such as New York ‘for a penny or two per kwh or often for free’ In 2011 this cost Ontario $420 Million Dollars.
- $200 Million for constructing power lines from Napanee back to Mississauga where the genuine need for power existed before the Election and exists to this very day.
- $210 Million being the cost of the Province’s purchase of one of the Contractors gas turbines. Likely the result of the Province buying off a law suit for wrongful cancellation of the pre election contract.
- $167 Million is what TransCanada Power will be paid annually – for 20 years - for operating the new Power Plant at Napanee even if it produces not one kwh of power over those 2 decades. It is becoming more apparent that a host of other Power Plants – up to 19 throughout the Province – are in receipt of the same deal.
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The numbers are beginning to clarify in regard to the McGuinty Liberals’ cancellation of the two Power Plants in Oakville and Mississauga days before the recent Provincial Election.
In my first part, I had indicated that the cost of these cancellations was $1.5 Billion Dollars despite the fact that McGuinty pegged them at only $40 million.
Now I find out that the $1.5 Billion figure I used was incorrect and now must retract that figure.
You may have already guessed it– the cost is actually much higher…more than $4 Billion Dollars to be more precise. And I expect before the dust settles on all of this – it will go even higher – much higher.
Let’s recap:
- McGuinty offered the first Contractor – TransCanada Power, in writing, about $750 Million Dollars if it would refrain from suing for breach of Contract;
- In lieu of this payment,TransCanada was given a new Contract, this one in regard to the Construction of a new Power Plant in Napanee Ontario. The new plant is to be located directly beside an existing Power Plant which has more or less been shuddered for lack of need – i.e. it produces only 1 to 2 % of its generating ability per annum. (presumably the $750 million payout will be recouped by TransCanada as part of the construction cost;
- Added to that, the Province entered into a 20 year Contract with TransCanada to operate the new unneeded facility guaranteeing TransCanada some $3.3 Billion Dollars over the 20 years irrespective of whether or not the new Plant generates even 1 kwh of power.
- The Second Contractor, an American Hedge Fund group by the name of EIG Management was in turn offered by McGuinty $82.3 Million Dollars but it turned him down and is now suing the Province for $300 Million for its losses incurred due to the hasty and unexpected cancellation of their contract.
- And added to all this is the fact that in total some 19 new Power Plants have been built by the McGuinty Government – most (all) operating well below capacity and most (all) likely protected by the 20 year sweet heart deal enjoyed by TransCanada. When more details are released with respect to this I will let you know but this is where the numbers can climb much higher.
Our Liberal Paper – the Ottawa Citizen finally deigned to give some coverage to this important issue in today’s paper – it allowed that the Government’s Officially stated cost of $40 million dollars may be somewhat understated and suggested that $240 Million would be more i keeping with reality. As if.
So we have today the Minister of Energy, Chris Bentley, being censured by the Legislature for Contempt – the first time this has occurred in the history of Ontario. Bentley – dear reader – could end up in jail while McGuinty is in full backpedal mode.
And speaking of McGuinty – I believe it is now apparent to all and sundry that he will never again lead the Liberal Party of Ontario in another General Election. As you know, I am saddened by this since this one person has single headedly ruined our once great Province.
In his 9 years in power he has brought Ontario to its knees fiscally speaking – mainly because of his disastrous Green Energy Program.
And with his 20 year contracts noted above and similar ones given to generators of Wind and Solar – the damage will keep on building for two decades to come.
I can’t help but feel that this is so unfair; i.e. that McGuinty will walk away away from the mess and damage he has created, with a very large Public Pension to boot.
Those who come in behind him, will be stuck with an unmanageable situation as well as stuck with the Lion’s Share of the Blame.
As I see it…
‘K. D. Galagher’
