February 10, 2006

Coal plants must be kept running beyond next year

One look at the calendar reveals that time is running out on the Ontario Government’s promise to eliminate coal generation next year.  However, the McGuinty government continues to push for the fulfillment of that promise; closing the doors of coal-plants in Atikokan, Thunder Bay and Lambton next year – and now deferring the Nanticoke closure until 2009.

Here is my snapshot of area concerns:

Atikokan:

As the Finance Committee rolled into Atikokan for pre-budget hearings, deputants told us the last thing they need is the closure of one of their few remaining economic drivers.

The slated 2007 closure of the Atikokan Station will further exacerbate the area’s economic crisis by eliminating a cost-effective source of energy. North Western Ontario’s pulp and paper and forestry industries have been devastated. Closing the plant will cut Atikokan’s population 20 per cent and its tax base 50 per cent.

Thunder Bay:

In the North, increasingly high electricity prices are also devastating industrial production and holding back new investment in mining and smelting with resultant impacts on employment, municipal property taxes and community services.

If switched to expensive natural gas, the Thunder Bay station would no longer be able to fill its current role of setting the electricity price for the region, and offsetting operating costs for the CN mainline and Thunder Bay coal terminal.  Again, jobs hang in the balance.

Sarnia-Lambton:

This government’s heavy-handed “Spills-Bill”, coupled with high energy and taxation costs, this has meant little new investment in the Sarnia’s chemical industry – the second highest manufacturing sector in Ontario’s economy.

The fact that a new natural gas plant is planned to replace Lambton’s coal generator sends up red flags as many are aware of the limited gas reserves available and rapidly increasing cost of natural gas.

And as the Clean and Affordable Energy (CAE) Alliance states, “coal plants can be retrofitted with existing technology to reduce emissions by an aggregate of 80 per cent, for about 20 per cent of the cost of coal closure.”

Nanticoke:

The visit of the Justice Committee to Simcoe gave us an opportunity to examine the economic side of the proposed Nanticoke closure equation.

Currently Nanticoke remains Ontario’s largest capacity plant, and third largest energy producer – covering 80 per cent of last year’s increase in demand across the province. And while these facts are key, locally the stakes are just as high – Nanticoke provides jobs to 620 OPG employees, spent $4.1 million on goods and services in the Haldimand-Norfolk-Brant area last year, and provided $2.8 million in tax payments to Haldimand County. Clearly much lies in the balance should McGuinty choose to make good his coal shut down promise.

As I told the Justice Committee last week, I am introducing a motion to maintain power production at Nanticoke.  And with respect to delegations made to the Finance Committee to keep Atikokan, Thunder Bay and Lambton open I also have drafted motions to that effect.

Last week, the local arm of the CAE Alliance held its inaugural meeting in Simcoe. I encourage those concerned locally – and indeed across the province – to work together to keep coal plants open next year and beyond!