THUNDER BAY -- City officials say they were encouraged by a meeting with the province's energy minister over the potential closure of a local power plant.
The delegation met with Minister Chris Bentley in Toronto to discuss the Ontario Power Authority’s decision to suspend conversion at the Thunder Bay Generating Station from coal to natural gas.
Because Ontario must be off of coal by 2014, the decision would effectively close the plant, a move that the OPA says would save the province $400 million.
Opponents of the closure argue that because nine mines are hoping to open up in the next three-to-five years, not having enough reliable energy in Northwestern Ontario could cost the province billions of dollars in taxes and other revenues if the mines don’t have enough power to operate.
On a conference call from Toronto Tuesday morning, mayor Keith Hobbs said Bentley has ordered the OPA to provide his office with the numbers they’ve used to make their decision. He also told the delegation that the final decision is also the provincial government’s to make, not the OPA’s.
“The minister did not say there wouldn’t be a conversion,” city intergovernmental committee chair Coun. Joe Viridramo said.
Hobbs and other leaders have been critical of a proposed East-West line that could provide power to the region.
That line wouldn’t even be in place until 2018 or even 2020, which would be far too late for the proposed mines looking to operate. Hobbs said not having the generating station puts the region’s economic future in jeopardy.
If industry can’t rely on power, it will start to scare investors away.
“They need to know that that energy is going to be in place,” Hobbs said.
MPP Bill Mauro (Lib., Thunder Bay-Atikokan) along with MPP Michael Gravelle (Lib., Thunder Bay-Superior North, support keeping the plant open. Mauro said the number $400 million from the OPA came as a surprise to him given that the number used to be around $125 million.
He thinks the OPA is including future operating costs, which would have to be incurred regardless of what happens.
“I see it as a bit of a red herring,” he said.
Coun. Larry Hebert said another plan is in the works if the government does decide to close the plant, buy it. In the mid 90s, the Northwest Energy Association and Texas Utilities made a bid to do just that. The Thunder Bay plant, along with the plant in Atikokan, were about $200 million at the time.
