Horwath calls for energy bill probe

Ontario NDP leader asks auditor about $231M in cancelled green projects

NDP Leader Andrea Horwath is calling on Ontario’s auditor general to investigate the estimated $231-million bill for a decision by Premier Doug Ford’s government to scrap almost 800 renewable energy projects.

Fearing an escalation in costs as seen with a previous Liberal government’s cancellation of two natural gas-fired power plants before the 2011 election, Horwath wrote Wednesday to auditor general Bonnie Lysyk after Energy Minister Greg Rickford brushed aside pleas to call her office in.

The cancellations “have had little public scrutiny and your auditing of their full costs is necessary for the public to fully understand the financial implications,” Horwath wrote.

As listed in the Ford government’s public accounts documents, the costs totalling $231 million are not itemized, leaving a “lack of transparency,” Horwath added.

“Given your office found in reports of March 2013 and October 2013 that the previous government’s cancellation of gas plant contracts exceeded their originally projected costs by hundreds of millions of dollars, it is prudent for Ontarians that all of the projected costs for the cancellation of these renewable power projects be examined,” she wrote.

Lysyk said her office currently has “no plans” to audit the payouts to developers of the projects, which include the

White Pines wind farm in the Prince Edward Country riding of cabinet minister Todd Smith.

The auditor found the previous Liberal government’s axing of gas plants in Mississauga and Oakville, and moving them to the Sarnia and Napanee areas, would cost up to $1.1billion over 20 years, which was far higher than the Liberals originally claimed.

Rickford defended the renewable energy project cancellations, saying they will save $790 million for ratepayers because the electricity was not needed.

“We will not be deterred from our efforts to continue to ensure that this system, our energy system, is simpler, less complex and more affordable,” said Rickford, whose government has promised to reduce electricity rates 12 per cent and initially suggested the cancellations wouldn’t cost a dime. “This is not a cost that the ratepayer will bear,” he added. “We think the people across Ontario appreciate our efforts to reduce the costs of their bills and that’s what we’re striving to do.”

But Horwath countered that taxpayers will be stuck with the $231 million in costs, even though the charges will not be reflected on their hydro bills. “It all comes out of the same pocket,” she said.

Rickford said on Wednesday that “any decommissioning cost will pale in comparison to the significant cost” of going ahead with the power.

Green Leader Mike Schreiner wants the auditor to look at the cancellation costs. “We need an independent, transparent accounting of it so we know what the real costs are,” he said.