Coal replacement plan announcement a prudent step

TORONTO, ONTARIO - The Association of Power Producers of Ontario (APPrO) welcomes the McGuinty government's announcement on the coal replacement plan.

According to APPrO President Dave Butters, the announcement provides much needed clarification, which APPrO has been calling for. "The transition from 7500 MW of coal capacity to cleaner supply alternatives represents the largest and most significant system change ever undertaken in Ontario, with many complexities. Now that a specific plan and timetable has been made clear, all parties can begin to develop the best solutions for replacement power," he said.

The decision to amend its closure schedule for coal-fired generation plants is a sensible policy adjustment that ultimately benefits power consumers in the province, adds the Electricity Distributors Association (EDA).

"Prudent public policy strives for positive, achievable objectives, within realistic timeframes and through real partnership with knowledgeable and capable stakeholders," said EDA CEO Charlie Macaluso. "In every sense, (the) decision by the government to amend its coal plant closure schedule reflects prudent public policy-making".

Butters noted that in particular the directive to the Ontario Power Authority (OPA) to negotiate contracts with the seven "early movers" is very good news. "Understandably, this has been a major APPrO focus for some time, and the successful negotiation of contracts would allow these currently underutilized but highly-efficient and clean electricity generators to make a significant contribution to support the coal replacement strategy at a reasonable cost to Ontario consumers, while earning a fair and reasonable return on the significant investments they have already made," he noted. Butters said this will also help to build further confidence among power producers in Ontario's investment climate.

Butters also welcomed the announcement of major additional procurement processes through the OPA. "We applaud the government for moving forward to address the pressing need for more power in the Toronto and GTA areas, as well as to develop more highly efficient cogeneration or combined heat and power projects in the province. Obviously APPrO members will look forward to competing vigorously on these projects," he added. The government anticipates as much as 2500 MW of new supply through these procurement processes, in addition to the RFPs already announced and ongoing negotiations with Bruce Power on the restart of Bruce A units 1 and 2.

APPrO is a non-profit organization representing more than 100 companies involved in the generation of electricity in Ontario, including generators and suppliers of services, equipment and consulting services.