$83 Billion Electricity Plan Demands Rigourous and Open Review: Pembina Institute

Dec. 9, 2005

The electricity supply plan to be developed on the basis of the recommendations made today by the Ontario Power Authority needs to be subject to a rigourous public review before it is implemented said the Pembina Institute.

The Power Authority's 'Supply Mix Advice" released today recommends, among other things, a $30-$40 billion refurbishment and construction program of nuclear power plants.

"The Authority's recommendations proposing capital investments by the province of between $56 and $83 billion present enormous economic and environmental risks for Ontario residents. Yet the assumptions on which the Authority has based its advice are open to serious question" said Dr. Mark Winfield, director of the Pembina Institute's Power for the Future project.

For example:

  • The Authority's estimates of the feasible and cost-effective potential for energy efficiency are far below those identified in other recent analyses, amounting to less than one third of that identified by the Pembina Institute in Power for the Future and demonstrated in other jurisdictions.
  • The Authority's estimates regarding the potential for low impact renewable energy in Ontario are also well below other recent analyses.
  • The "life-cycle" assessment of the impact of different supply options downplays the very long-term adverse impacts of nuclear power (e.g. waste generation and radioactivity) relative to other supply options.
  • The OPA is forecasting that Ontario's electricity consumption will grow by 0.9% per year — roughly double the actual growth rate (0.5%) from 1990-2005.

Dr. Winfield added that: "It is essential that the assumptions that underlie authority's recommendations be examined in a rigourous and open manner. That is the only way Ontario residents can fully understand their risks and costs relative to other potential energy policy paths that the province might take. We also note that the former Minister of Energy committed to an "open and public" debate on the future of nuclear power in Ontario."

In the Pembina Institute's view, the most efficient and effective way to provide for such an examination and debate would be to designate the Authority's proposed plan for review under the province's Environmental Assessment Act, and making it subject to a public hearing before a joint board of the Ontario Energy Board and Environmental Review Tribunal. Such an approach would follow the path taken by Premier David Peterson's government when presented with a similar plan by Ontario Hydro in 1989.

Aggressive 'no regrets' policies to improve the energy efficiency and productivity of Ontario's economy, and to expand the role of low-impact renewable energy sources should be pursued at the same time.

"We cannot accept the proposition that Ontario has no option but to proceed with a massive investment in supply side options, when we know that there is an enormous potential to reduce electricity consumption in Ontario through energy efficiency measures, and that the province has failed to make any serious effort to pursue those options to date" concluded Dr. Winfield.

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For more information contact:

Mark S. Winfield, Ph.D., Director, Environmental Governance

Tel: 416-978-5656 Fax: 416-971-2078

e-mail: markw@pembina.org

An update on Power for the Future published on December 1, found that despite the Ontario government's talk about the creation of a 'conservation culture' in the province, spending on new electricity supply is outstripping its investments in efficiency by a ratio of 64:1.

The report is available here.

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