Talks continue after Ontario rejects 20-year deal to buy Quebec power
Ontario is negotiating a possible agreement to buy electricity from Quebec, but the government is disputing a published report that it’s preparing to sign a deal for enough electricity to power a city the size of Ottawa.
La Presse reported Tuesday that it obtained a copy of a draft 20-year deal that says Ontario would buy eight terawatt hours per year from Quebec — about six per cent of Ontario’s consumption — whether the electricity is consumed or not.
Ontario Energy Minister Glenn Thibeault’s office said the province is in discussions to build on an agreement signed last year for Ontario to import up to two terawatt hours of electricity a year from Quebec.
But his office released a letter dated late last month to his Quebec counterpart in which Thibeault said the offer extended in June was unacceptable because it would increase the average residential electricity bill by $30 a year.
“I’m hopeful that your continued support and efforts will help to further discussions between our jurisdictions that could lead to an agreement that is in the best interest of both Ontario and Quebec,” Thibeault wrote on July 27 to Pierre Arcand.
Ontario will prepare a “term sheet” for the next stage of discussions ahead of the two ministers meeting at the Energy and Mines Ministers Conference this month in New Brunswick, Thibeault wrote.
Any future agreements with Quebec will have to provide a reduction in Ontario electricity costs compared with other alternatives and demonstrate measurable reductions in greenhouse gas emissions, he wrote.
Progressive Conservative Leader Patrick Brown said Ontario doesn’t need eight terawatt hours of additional power and suggested the Liberal government is considering closing facilities such as the Pickering nuclear plant early. A senior energy ministry official said that’s not on the table.
Even if the Quebec offer had been accepted, the energy official said, that power wouldn’t have replaced any of Ontario’s baseload power because it couldn’t have been counted on 24 hours a day, 365 days a year.
The Society of Energy Professionals said Thibeault was right to reject the deal, but called on him to release the Long-Term Energy Plan — which was supposed to be out this spring — before continuing negotiations.
The Ontario Energy Association said the reported deal would run counter to the government’s stated energy objectives.
The Association of Power Producers of Ontario said it’s concerned the government is even considering deals that would “threaten to undercut a competitive marketplace and long-term planning.”