Will the province shut down the coal-fired generating stations?

In previous articles I wrote about the changes that have been occurring at Hydro during the last three provincial governments, how we went from power at cost to using Hydro as an instrument of social policy, to attempts at full deregulation, and the most recent blended system under the Liberal government.

It is no surprise then, that the recent announcement that the government was not planning to go ahead with its election promise to shut down the coal fired generating stations by 2007, drew a sigh of relief from the communities affected and from many other quarters. In fact, besides the direct and indirect job losses in those communities, the impact of closing the stations would have reached far beyond Northwestern Ontario and would have had a detrimental impact on the overall supply of power in the provincial grid and a corresponding further increase in prices.

While the government's announcements for conservation measures and new supply of green energy are moves in the right direction, it will need to ensure adequate alternatives are in place before even contemplating such a move again in the future.

Ontario coal-fired plants supply about 26 per cent of the total energy demand in the province. Thunder Bay and Atikokan Generating Stations can supply about half of Northwestern Ontario's peak electricity demand of 1,100 MW.

Fossil generation accounts for only 14.7 per cent of all NOx emissions generating in Ontario and recent advancements in clean coal burning technology are bringing this number even lower. In fact, Ontario has invested $1.8 billion since 1984 and OPG recently announced an additional $250 million investment for the installation of new technology that will reduce nitrogen oxide (NOx) emissions by 80 per cent.

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Given the huge cost of converting coal-fired plants to natural gas, the flexibility and reliability they provide in meeting peak demand (no need to worry about low water levels for hydroelectric power or another nuclear plant shutting down for maintenance), and the next generation of clean coal technologies being implemented across North America, it would seem an unlikely scenario that the provincial government would push forward to what at the time seemed like a good election promise.

Frank Pullia is the principal of Pullia Accounting & Consulting and a former city councillor. He was also the budget coordinator for the Northwestern Ontario Hydro Region between 1987-95 and can be reached at 807-474-8294 or emailed at [e-mail]