Power shortfall looming: Report

Warning could force Liberals to rethink promise to shut coal plants

Canadian Press - January 14, 2004

Ontario is facing a "looming electricity supply shortfall" within two years that may force the Liberal government to rethink a campaign promise to shut the province's coal-fired plants by 2007, said a report released today.

"To avoid major supply risks, coal plants may need to be kept in operation until adequate replacement generation and demand reduction measures are in place," warns the report, prepared for Energy Minister Dwight Duncan by Ontario's electricity conservation and supply task force.

Shutting down the province's coal-fired power plants was a major plank in the Liberal platform during last October's election campaign.

In fact, the report suggests that without new supply and substantial conservation efforts, the province may begin running short of power as early as 2006.

By 2014, the province would have only half the generation capacity required, the report says.

The task force was set up by the former Conservative government last June following brownouts and warnings that the province's electricity supply was already running dangerously low.

The report also said the government has to ensure electricity prices are stable and implement a clear policy to encourage private investors to build the new supply the province so desperately needs.

The energy-hungry province also has to foster a "conservation culture" to keep a lid on rising demand, and needs to encourage the use of renewable energy sources, the report said.

Even so, "even with strong pushes on conservation and renewables, the demand-supply gap remains very wide."

The province's electricity transmission grid also has to be managed "as basic public infrastructure, facilitating new supply and competition," it said.

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