Invest in power supply

Toronto Star - April 19, 2003
Editorial

Premier Ernie Eves has asked Ontarians to answer 12 questions online to help him shape the April 30 throne speech. The Star offers its answers.

Q What further steps should the government take to maintain a reliable source of electricity at a reasonable cost in a growing economy?

A Further steps? The government talks of its comprehensive action plan to address the precarious state of Ontario's power supplies. But this plan boils down to dangling incentives in front of the private sector to build desperately needed new power generators.

There's a major flaw with that strategy: By freezing the price of power in the context of a free market, the government has created even bigger disincentives for the private sector. Thus, it is not willing to invest.

Plan A is not working. There is no Plan B. No major power supplies are being built. Last summer, Ontario had to be rescued by high-priced power imports. Expect more of the same this summer.

Worse news is coming. A recent report said at least 40 per cent of the generating capacity in the province is approaching the end of its useful life, and must be replaced over the next 15 years.

Without a secure power supply, our economic future is threatened. The province's whacky call last week for businesses to set up small diesel generators is unlikely to impress industry considering locating in Ontario.

The government has no option but to invest to ensure our future power needs are met.

It also must develop an aggressive conservation plan, along the lines of the measures proposed by the Ontario New Democrats. Their proposal calls for loans to retrofit homes and businesses that could reduce power use by 40 per cent.

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