New gas plants were poorly planned

Re Gas plant fiasco more tragedy than conspiracy, Column, May 2 Unlike Martin Regg Cohn, I believe the gas plant fiasco is very much a conspiracy, one of idiots. This whole situation began when Dalton McGuinty committed to eliminating Ontario’s coal-fired electrical generating stations and then set unrealistic closure deadlines that didn’t allow for the orderly transition to an environmentally greener energy supply mix. We had coal-fired power plants in place at Lakeview and Nanticoke with little to no NIMBY exposure, sufficient plot space to install “clean” natural gas-fired generation, and connections to our existing power grid. We could have renewed and/or upgraded these connections if necessary. But we said no. Then we blindly accepted the concept that power generation should be located as close to the consumer as possible. What followed was the proposed placement of major industrial facilities smack in the middle of existing communities. How did they expect local people to react? Finally, we cancel binding contracts and get out the taxpayers’ chequebook and say, oh well, I guess we have to pay. And we can’t even get this right.

I understand that we can expect to have to pick up some costs to relocate these facilities. Our private sector partners will have spent real money on these projects and they deserve to be made whole with respect to this spending. However, I call BS on agreeing to the demand for compensation for future lost profits.

The profits companies earn are derived from the investment of capital and the taking on of risk. When a project is cancelled, capital that would have otherwise been tied up in the endeavour is now available to be invested in other profit-generating opportunities for that business.

The energy portfolio has been mishandled by the provincial Liberals at every major step along the way. R. Scott Marsh, Oakville