Durham MPP Warns Expensive Foreign Contracts
Will Result in Higher Electricity Bills

February 4, 2010

NEWS:

QUEEN’S PARK – Durham MPP John O’Toole said today that the Dalton McGuinty government is turning its back on made-in-Ontario energy partnerships, and choosing costly deals with foreign companies. “This government’s misguided dependence on offshore firms will lead to bigger hydro bills, and fewer jobs for energy centres like the Durham Region and our Durham Riding,” Mr. O’Toole warned.

He was commending on the recent $7 billion renewable energy deal between Ontario and a South Korean consortium of Samsung and Korea Electric Power Corp.

“This government could have put together a strong partnership with Ontario’s own leading energy companies,” Mr. O’Toole said. “Here in Durham Region and Durham Riding we have two of the world’s major nuclear power stations, plus a skilled workforce, innovative energy companies and outstanding research and education facilities at the University of Ontario Institute of Technology.”

Instead of working with Ontario partners, the McGuinty Government has signed a contract agreeing to pay a foreign multi-national a premium price for large renewable energy projects. This power will cost 13.5 cents per kilowatt hour for wind and 44.3 cents for solar. That compares to the current energy price of between five and six cents per kilowatt hour for existing Ontario electricity production.

Mr. O’Toole called for a review of the sole-sourced contract with the South Korean consortium and for a commitment to build two new reactors at Darlington. “Renewable energy must be part of the mix. However, the new units at Darlington will provide lower cost base-load power for Ontario’s long-term energy future. The Darlington project will also mean 3,500 construction jobs and 1,500 jobs in operations, plus numerous spin-off benefits,” the Durham MPP said.

QUOTE:

“This government’s misguided buy-Korean policy will lead to paying more, with fewer jobs created in energy centres like the Durham Region, at our colleges and universities, and indeed throughout Ontario.

- John O’Toole, MPP – Durham

QUICK FACTS:

The building of two new reactors at the Darlington Nuclear Generating Station would mean 3,500 construction jobs and 1,500 operation positions.

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For further information please contact:
John O’Toole, MPP – Durham  /  (905) 697-1501 / 1-800-661-2433