OPA estimates cost of cancelling Oakville gas plant at $310 million
The Liberals have repeatedly said Oakville cost $40 million, which is accurate to describe only the "sunk costs" that cannot be recovered.
Mississauga gas plant
Oakville gas plant
Ontario Power Authority
TORONTO—The Ontario Power Authority says the cost of cancelling the Oakville gas plant was up to $310 million, many times more than the $40-million figure the Liberal government has been using.
Colin Andersen, CEO of the energy planning agency, says the OPA commissioned outside experts who estimated the cost of cancelling the Oakville plant at $241 million.
However, Andersen told a legislative committee the OPA itself now puts the cost of the Oakville project at $310 million, and explained the difference by saying many future costs are hard to estimate.
The Liberals have repeatedly said Oakville cost $40 million, which Andersen said is accurate to describe only the so-called “sunk costs” that cannot be recovered.
Premier Kathleen Wynne will testify later today before the justice committee hearings into her government’s decisions to cancel gas plants in Mississauga and Oakville.
It’s rare for a sitting premier to agree to appear before a committee, but Wynne says she wants to be open and transparent.
The auditor general recently reported on the cost of halting the Mississauga gas plant in mid-construction just days before the 2011 election cost $275 million, $85 million more than the Liberals were admitting.
The auditor’s report into the Oakville gas plant won’t be ready until late summer.