Almost half of UK reactors shut down

By London Evening Standard


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Almost half of BritainÂ’s nuclear power stations are out of action, raising fears of power cuts and sharp price rises.

British Energy's decision to close seven of its 16 reactors has also raised concerns about the reliability of the country's nuclear plants.

Three of the plants have been closed due to faults, three are being inspected for potential faults and one is undergoing routine maintenance.

None of the problems involves the nuclear reactor itself.

The closures come as the Government pushes for a new wave of nuclear stations, to replace aging plants which produce up to 20 per cent of the country's electricity.

Experts say that unless all the plants are quickly back in operation, industry and domestic users could face power cuts as well as higher electricity bills.

Ian Fells, a professor of energy conversion at Newcastle University, said: "It is disturbing. We are going to have to rely on it being a warm winter.

"It's not just the loss of electricity, it's the loss to industry when everything fails. It is quite a serious matter."

British Energy - part-owned by the Government - closed the two reactors at its Hartlepool plant after a maintenance inspection flagged up a problem with a giant boiler in one.

Two reactors at a sister plant, Heysham 1 in Lancashire, were taken out of service as a precaution.

The power station at Torness in East Lothian, which also has two reactors, has been shut due to electrical faults, while one of the two reactors at Dungeness B in Kent is closed for routine maintenance.

Reactors typically produce enough electricity each to heat and light two million homes. Heysham 1 can power three cities the size of Liverpool.

British Energy, whose shares have fallen more than eight per cent in the wake of the closures, refused to speculate on when all the plants will be running again.

The trade body, the Nuclear Industry Association, stressed that the faults related to production rather than safety, and were British Energy - part-owned by the Government - closed the two reactors at its Hartlepool plant after a maintenance inspection flagged up a problem with a giant boiler in one.

Two reactors at a sister plant, Heysham 1 in Lancashire, were taken out of service as a precaution.

The power station at Torness in East Lothian, which also has two reactors, has been shut due to electrical faults, while one of the two reactors at Dungeness B in Kent is closed for routine maintenance.

Reactors typically produce enough electricity each to heat and light two million homes. Heysham 1 can power three cities the size of Liverpool.

British Energy, whose shares have fallen more than eight per cent in the wake of the closures, refused to speculate on when all the plants will be running again.

The trade body, the Nuclear Industry Association, stressed that the faults related to production rather than safety, and were brought on by wear and tear in aging reactors built in different styles. Some are more than 35 years old.

NIA spokesman John McNamara, said: "British Energy's engineering and maintenance standards are world-class, but they have a collection of very disparate prototypes of reactors.

"That presents them with a huge engineering problem.

"In our opinion there should be greater focus on building a new generation of nuclear stations to a standard design."

Mr McNamara added: "I think there is capacity in the system to ensure there isn't any effect on supply, but it is getting tighter."

Former environment minister Michael Meacher, a long-time opponent of civil nuclear power, said: "I think it is extremely worrying that one of the major sources of electricity is half down at this time. One needs certainty and the nuclear industry doesn't provide it."

It is thought the problem in Hartlepool relates to the corrosion of steel rods used to strengthen the concrete lid of a high-pressure boiler.

The boilers are effectively giant kettles which use the heat from the nuclear reaction to create steam which turns electricity-producing turbines.

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Inside Copenhagen’s race to be the first carbon-neutral city

Hedonistic Sustainability turns Copenhagen's ARC waste-to-energy plant into a public playground, blending ski slope, climbing wall, and trails with carbon-neutral heating, renewables, circular economy design, and green growth for climate action and liveability.

 

Key Points

A design approach fusing public recreation with clean-energy infrastructure to drive carbon-neutral, livable urban growth.

✅ Waste-to-energy plant doubles as recreation hub

✅ Supports carbon-neutral heating and renewables

✅ Stakeholder-driven, scalable urban climate model

 

“We call it hedonistic sustainability,” says Jacob Simonsen of the decision to put an artificial ski slope on the roof of the £485m Amager Resource Centre (Arc), Copenhagen’s cutting-edge new waste-to-energy power plant that feeds the city’s district heating network as well. “It’s not just good for the environment, it’s good for life.”

Skiing is just one of the activities that Simonsen, Arc’s chief executive, and Bjarke Ingels, its lead architect, hope will enhance the latest jewel in Copenhagen’s sustainability crown. The incinerator building also incorporates hiking and running trails, a street fitness gym and the world’s highest outdoor climbing wall, an 85-metre “natural mountain” complete with overhangs that rises the full height of the main structure.

In Copenhagen, green transformation goes hand-in-hand with job creation, a growing economy and a better quality of life

Frank Jensen, lord mayor

It’s all part of Copenhagen’s plan to be net carbon-neutral by 2025. Even now, after a summer that saw wildfires ravagethe Arctic Circle and ice sheets in Greenland suffer near-record levels of melt, the goal seems ambitious. In 2009, when the project was formulated, it was positively revolutionary.

“A green, smart, carbon-neutral city,” declared the cover of the climate action plan, aligning with a broader electric planet vision, before detailing the scale of the challenge: 100 new wind turbines; a 20% reduction in both heat and commercial electricity consumption; 75% of all journeys to be by bike, on foot, or by public transport; the biogas-ification of all organic waste; 60,000 sq metres of new solar panels; and 100% of the city’s heating requirements to be met by renewables.

Radical and far-reaching, the scheme dared to rethink the very infrastructure underpinning the city. There’s still not a climate project anywhere else in the world that comes close, even as leaders elsewhere champion a fully renewable grid by 2030.

And, so far, it’s working. CO2 emissions have been reduced by 42% since 2005, and while challenges around mobility and energy consumption remain (new technologies such as better batteries and carbon capture are being implemented, and global calls for clean electricity investment grow), the city says it is on track to achieve its ultimate goal.

More significant still is that Copenhagen has achieved this while continuing to grow in traditional economic terms. Even as some commentators insist that nothing short of a total rethink of free-market economics and corporate structures is required to stave off global catastrophe, the Danish capital’s carbon transformation has happened alongside a 25% growth in its economy over two decades. Copenhagen’s experience will be a model for other world cities as the global energy transition unfolds.

The sentiment that lies behind Arc’s conception as a multi-use public good – “hedonistic sustainability” – is echoed by Bo Asmus Kjeldgaard, former mayor of Copenhagen for the environment and the man originally tasked, back in 2010, with making the plan a reality.

“We combined life quality with sustainability and called it ‘liveability’,” says Kjeldgaard, now CEO of his own climate adaptation company, Greenovation. “We succeeded in building a good narrative around this, one that everybody could believe in.”

The idea was first floated in the late 1990s, when the newly elected Kjeldgaard had a vision of Copenhagen as the environmental capital of Europe. His enthusiasm ran into political intransigence, however, and despite some success, a lack of budget meant most of his work became “just another branding exercise – it was greenwashing”.

We’re such a rich country – change should be easy for us

Claus Nielsen, furniture maker and designer

But after stints as mayor of family and the labour market, and children and young people, he ended up back at environment in 2010 with renewed determination and, crucially, a broader mandate from the city council. “I said: ‘This time, we have to do it right,’” he recalls, “so we made detailed, concrete plans for every area, set the carbon target, and demanded the money and the manpower to make it a reality.”

He brought on board more than 200 stakeholders, from businesses to academia to citizen representatives, and helped them develop 22 specific business plans and 65 separate projects. So far the plan appears on track: there has been a 15% reduction in heat consumption, 66% of all trips in the city are now by bike, on foot or public transport, and 51% of heat and power comes from renewable electricity sources.

The onus placed on ordinary Copenhageners to walk and cycle more, pay higher taxes (especially on cars) and put up with the inconvenience of infrastructure construction has generally been met with understanding and good grace. And while some people remain critical of the fact that Copenhagen airport is not factored into the CO2 calculations – it lies beyond the city’s boundaries – and grumble about precise definitions and formulae, dissent has been rare.

This relative lack of nimbyism and carping about change can, says Frank Jensen, the city’s lord mayor, be traced to longstanding political traditions.

“Caring for the environment and taking responsibility for society in general has been an integral part of the upbringing of many Danes,” he says. “Moreover, there is a general awareness that climate change now calls for immediate, ambitious and collective action.” A 2018 survey by Concito, a thinktank, found that such action was a top priority for voters.

Jensen is keen to stress the cooperative nature of the plan and says “our visions have to be grounded in the everyday lives of people to be politically feasible”. Indeed, involving so many stakeholders, and allowing them to actively help shape both the ends and the means, has been key to the plan’s success so far and the continued goodwill it enjoys. “It’s so important to note that we [the authorities] cannot do this alone,” says Jørgen Abildgaard, Copenhagen’s executive climate programme director.

Many businesses around the world have typically been reluctant to embrace sustainability when a dip in profits or inconvenience might be the result, but not in Copenhagen. Martin Manthorpe, director of strategy, business development and public affairs at NCC, one of Scandinavia’s largest construction and industrial groups, was brought in early on by Abildgaard to represent industry on the municipality’s climate panel, and to facilitate discussions with the wider business community. He thinks there are several reasons why.

“The Danes have a trading mindset, meaning ‘What will I have to sell tomorrow?’ is just as important as ‘What am I producing today?’” he says. “Also, many big Danish companies are still ultimately family-owned, so the culture leans more towards long-term thinking.”

It is, he says, natural for business to be concerned with issues around sustainability and be willing to endure short-term pain: “To do responsible, long-term business, you need to see yourself as part of the larger puzzle that is called ‘society’.”

Furthermore, in Denmark climate change denial is given extremely short shrift. “We believe in the science,” says Anders Haugaard, a local entrepreneur. “Why wouldn’t you? We’re told sustainability brings only benefits and we’ve got no reason to be suspicious.”

“No one would dare argue against the environment,” says his friend Claus Nielsen, a furniture maker and designer. “We’re such a rich country – change should be easy for us.” Nielsen talks about how enlightened his kids are – “my 11-year-old daughter is now a flexitarian ” – and says that nowadays he mainly buys organic; Haugaard doesn’t see a problem with getting rid of petrol cars (the whole country is aiming to be fossil fuel-free by 2050 as the EU electricity use by 2050 is expected to double).

Above all, there’s a belief that sustainability need not make the city poorer: that innovation and “green growth” can be lucrative in and of themselves. “In Copenhagen, green transformation goes hand-in-hand with job creation, a growing economy and a better quality of life,” says Jensen. “We have also shown that it’s possible to combine this transition with economic growth and market opportunities for businesses, and I think that other countries can learn from our example.”

Besides, as Jensen notes, there is little alternative, and even less time: “National states have failed to take enough responsibility, but cities have the power and will to create concrete solutions. We need to start accelerating their implementation – we need to act now.”

 

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Trump's Order Boosts U.S. Uranium and Nuclear Energy

Uranium Critical Mineral Reclassification signals a US executive order directing USGS to restore critical status, boosting nuclear energy, domestic uranium mining, streamlined permitting, federal support, and energy security amid import reliance and supply chain risks.

 

Key Points

A policy relisting uranium as a critical mineral to unlock funding, speed permits, and strengthen U.S. nuclear security.

✅ Directs Interior to have USGS reconsider uranium classification

✅ Speeds permits for domestic uranium mining projects

✅ Targets import dependence and strengthens energy security

 

In a strategic move to bolster the United States' nuclear energy sector, former President Donald Trump issued an executive order on January 20, 2025, directing the Secretary of the Interior to instruct the U.S. Geological Survey (USGS) to reconsider classifying uranium as a critical mineral. This directive aims to enhance federal support and streamline permitting processes for domestic uranium projects, thereby strengthening U.S. energy security objectives.

Reclassification of Uranium as a Critical Mineral

The USGS had previously removed uranium from its critical minerals list in 2022, categorizing it as a "fuel mineral" that did not qualify for such designation. The recent executive order seeks to reverse this decision, recognizing uranium's strategic importance in the context of the nation's energy infrastructure and geopolitical considerations.

Implications for Domestic Uranium Production

Reclassifying uranium as a critical mineral is expected to unlock federal funding and expedite the permitting process for uranium mining projects within the United States. This initiative is particularly pertinent given the significant decline in domestic uranium production over the past two decades. According to the U.S. Energy Information Administration, domestic production has decreased by 96%, from 4.8 million pounds in 2014 to approximately 121,296 pounds in the third quarter of 2024.

Current Uranium Supply Dynamics

Despite the push for increased domestic production, the U.S. remains heavily reliant on uranium imports. In 2022, 27% of U.S. uranium purchases were sourced from Canada, with an additional 57% imported from countries including Kazakhstan, Uzbekistan, Australia, and Russia; a recent ban on Russian uranium could further disrupt these supply patterns and heighten risks. This reliance on foreign sources has raised concerns about energy security, especially in light of recent geopolitical tensions.

Challenges and Considerations

While the executive order represents a significant step toward revitalizing the U.S. nuclear energy sector, several challenges persist, and energy dominance faces constraints that will shape implementation:

  • Regulatory Hurdles: Accelerating the permitting process for uranium mining projects involves navigating complex environmental and regulatory frameworks, though recent permitting reforms for geothermal hint at potential pathways, which can be time-consuming and contentious.

  • Market Dynamics: The uranium market is subject to global supply and demand fluctuations, and domestic producers may face competition from established international suppliers.

  • Infrastructure Development: Expanding domestic uranium production necessitates substantial investment in mining infrastructure and workforce development, areas that have been underfunded in recent years.

Broader Implications for Nuclear Energy Policy

The executive order aligns with a broader strategy to revitalize the U.S. nuclear energy industry, where ongoing nuclear innovation is critical to delivering stable, low-emission power. The increasing demand for nuclear energy is driven by the global push for zero-emissions energy sources and the need to support power-intensive technologies, such as artificial intelligence servers.

Former President Trump's executive order to reclassify uranium as a critical mineral, aligning with his broader energy agenda and a prior pledge to end the 'war on coal', signifies a pivotal moment for the U.S. nuclear energy sector. By potentially unlocking federal support, including programs advanced by the Nuclear Innovation Act, and streamlining permitting processes, this initiative aims to reduce dependence on foreign uranium sources and enhance national energy security. However, realizing these objectives will require addressing regulatory challenges, market dynamics, and infrastructure needs to ensure the successful revitalization of the domestic uranium industry.

 

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Ontario Provides Stable Electricity Pricing for Industrial and Commercial Companies

Ontario ICI Electricity Pricing Freeze helps Industrial Conservation Initiative (ICI) participants by stabilizing Global Adjustment charges, suspending peak hours curtailment, and reducing COVID-19-related electricity cost volatility to support large employers returning operations to full capacity.

 

Key Points

A two-year policy stabilizing GA costs and pausing peak-hour cuts to aid industrial and commercial recovery.

✅ GA cost share frozen for two years

✅ No peak-hour curtailment obligations

✅ Supports industrial and commercial restart

 

The Ontario government is helping large industrial and commercial companies return to full levels of operation without the fear of electricity costs spiking by providing more stable electricity pricing for two years. Effective immediately, companies that participate in the Industrial Conservation Initiative (ICI) will not be required to reduce their electricity usage during peak hours or shift some load to ultra-low overnight pricing where applicable, as their proportion of Global Adjustment (GA) charges for these companies will be frozen.

"Ontario's industrial and commercial electricity consumers continue to experience unprecedented economic challenges during COVID-19, with electricity relief for households and small businesses introduced to help," said Greg Rickford, Minister of Energy, Northern Development and Mines. "Today's announcement will allow large industrial employers to focus on getting their operations up and running and employees back to work, instead of adjusting operations in response to peak electricity demand hours."

Due to COVID-19, electricity consumption in Ontario has been below average as fall in demand as people stayed home across the province, and the province is forecast to have a reliable supply of electricity, supported by the system operator's staffing contingency plans during the pandemic, to accommodate increased usage. Peak hours generally occur during the summer when the weather is hot and electricity demand from cooling systems is high.

"Today's action will reduce the burden of anticipating and responding to peak hours for more than 1,300 ICI participants with 2,000 primarily industrial facilities in Ontario," said Bill Walker, Associate Minister of Energy. "Now these large employers can focus on getting their operations back up and running at full tilt and explore new energy-efficiency programs to manage costs."

The government previously announced it was providing temporary relief for industrial and commercial electricity consumers that do not participate in the Regulated Price Plan (RPP) by deferring a portion of GA charges for April, May and June 2020 and by extending off-peak rates for many customers, as well as a disconnect moratorium extension for residential electricity users.

 

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Sudbury Hydro crews aim to reconnect service after storm

Sudbury Microburst Power Outage strains hydro crews after straight-line winds; New Sudbury faces downed power lines, tree damage, and hazardous access as restoration efforts, mutual aid, and safety protocols aim to reconnect customers by weekend.

 

Key Points

A microburst downed lines in New Sudbury, cutting power as crews tackle hazardous access and complex repairs.

✅ Straight-line winds downed poles, trees, and service lines

✅ Crews face backyard access hazards, complex reconnections

✅ Mutual aid linemen, arborists, and crane work speed restoration

 

About 300 Sudbury Hydro customers are still without power Thursday after Monday's powerful microburst storm, part of a series of damaging storms in Ontario seen across the province.

The utility's spokesperson, Wendy Watson, says the power in the affected New Sudbury neighbourhoods should be back on by the weekend, even as Toronto power outages persisted in a recent storm.

The storm, which Environment Canada said was classified as a microburst or straight line wind damage, similar to a severe windstorm in Quebec, downed a number of power lines in the city.

Now crews are struggling with access to the lines, a challenge that BC Hydro's atypical storm response also highlighted, as they work to reconnect service in the area.

"In some cases, you can't get to someone's back yard, or you have to go through the neighbour's yard," Watson said.

"We have one case where [we had] equipment working over a swimming pool. It's dicey, it's really dirty and it's dangerous."

Monday's storm caused massive property damage across the city, particularly in New Sudbury. (Benjamin Aubé/CBC)

Veteran arborist Jim Allsop told CBC News he hasn't seen damage like this in his 30-plus years in the business.

"I don't know how many we've done up to date, but I have another 35 trees on houses," Allsop said. "We'll be probably another week."

"We've rented a crane to help speed up the process, and increase safety, and we're getting five or six done in our 12-hour days."

Scott Aultman, a lineman with North Bay Hydro, said he has seen a few storms in his career, and isn't usually surprised by extensive damage a storm can cause.

"When you see a trailer on its side, you know, you don't see that every day," Aultman said.

But during the clean up, Aultman said the spirit of camaraderie runs high with crews from different areas, as seen when Canadian crews helped Florida during Hurricane Irma.

"We were pumped. It's part of the trade, everybody gets together," Aultman said. "We had a big storm in 2006 and the Sudbury guys were up helping us, so it's great, it's nice to be able to return the favour and help them out."

 

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Oil crash only a foretaste of what awaits energy industry

Oil and Gas Profitability Decline reflects shale-driven oversupply, OPEC-Russia dynamics, LNG exports, renewables growth, and weak demand, signaling compressed margins for producers, stressed petrodollar budgets, and shifting energy markets post-Covid.

 

Key Points

A sustained squeeze on hydrocarbon margins from agile shale supply, weaker OPEC leverage, and expanding renewables.

✅ Shale responsiveness caps prices and erodes industry rents

✅ OPEC-Russia cuts face limited impact versus US supply

✅ Renewables and EVs slow long-term oil and gas demand

 

The oil-price crash of March 2020 will probably not last long. As in 2014, when the oil price dropped below $50 from $110 in a few weeks, this one will trigger a temporary collapse of the US shale industry. Unless the coronavirus outbreak causes Armageddon, cheap oil will also support policymakers’ efforts to help the global economy.

But there will be at least one important and lasting difference this time round — and it has major market and geopolitical implications.

The oil price crash is a foretaste of where the whole energy sector was going anyway — and that is down.

It may not look that way at first. Saudi Arabia will soon realise, as it did in 2015, that its lethal decision to pump more oil is not only killing US shale but its public finances as well. Riyadh will soon knock on Moscow’s door again. Once American shale supplies collapse, Russia will resume co-operation with Saudi Arabia.

With the world economy recovering from the Covid-19 crisis by then, and with electricity demand during COVID-19 shifting, moderate supply cuts by both countries will accelerate oil market recovery. In time, US shale producers will return too.

Yet this inevitable bounceback should not distract from two fundamental factors that were already remaking oil and gas markets. First, the shale revolution has fundamentally eroded industry profitability. Second, the renewables’ revolution will continue to depress growth in demand.

The combined result has put the profitability of the entire global hydrocarbon industry under pressure. That means fewer petrodollars to support oil-producing countries’ national budgets, including Canada's oil sector exposures. It also means less profitable oil companies, which traditionally make up a large segment of stock markets, an important component of so many western pension funds.

Start with the first factor to see why this is so. Historically, the geological advantages that made oil from countries such as Saudi Arabia so cheap to produce were unique. Because oil and gas were produced at costs far below the market price, the excess profits, or “rent”, enjoyed by the industry were very large.

Furthermore, collusion among low-cost producers has been a winning strategy. The loss of market share through output cuts was more than compensated by immediately higher prices. It was the raison d’être of Opec.

The US shale revolution changed all this, exposing the limits of U.S. energy dominance narratives. A large oil-producing region emerged with a remarkable ability to respond quickly to price changes and shrink its costs over time. Cutting back cheap Opec oil now only increases US supplies, with little effect on world prices.

That is why Russia refused to cut production this month. Even if its cuts did boost world prices — doubtful given the coronavirus outbreak’s huge shock to demand — that would slow the shrinkage of US shale that Moscow wants.

Shale has affected the natural gas industry even more. Exports of US liquefied natural gas now put an effective ceiling on global prices, and debates over a clean electricity push have intensified when gas prices spike.

On top of all this, there is also the renewables’ revolution, though a green revolution has not been guaranteed in the near term. Around the world, wind and solar have become ever-cheaper options to generate electricity. Storage costs have also dropped and network management improved. Even in the US, renewables are displacing coal and gas. Electrification of vehicle fleets will damp demand further, as U.S. electricity, gas, and EVs face evolving pressures.

Eliminating fossil fuel consumption completely would require sustained and costly government intervention, and reliability challenges such as coal and nuclear disruptions add to the complexity. That is far from certain. Meanwhile, though, market forces are depressing the sector’s usual profitability.

The end of oil and gas is not immediately around the corner. Still, the end of hydrocarbons as a lucrative industry is a distinct possibility. We are seeing that in dramatic form in the current oil price crash. But this collapse is merely a message from the future.

 

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Investigation reveals power company 'gamed' $100M from Ontario's electricity system

Goreway Power Station Overbilling exposed by Ontario Energy Board shows IESO oversight failures, GCG gaming, and $100M in inappropriate payments at the Brampton natural gas plant, penalized with fines and repayments impacting Ontario ratepayers.

 

Key Points

Goreway exploited IESO GCG flaws, causing about $100M in improper payouts and fines.

✅ OEB probe flagged $89M in ineligible start-up O&M charges

✅ IESO fined Goreway $10M; majority of excess costs recovered

✅ Audit found $200M in overbilling across nine generators

 

Hydro customers shelled out about $100 million in "inappropriate" payments to a natural gas plant that exploited flaws in how Ontario manages its private electricity generators, according to the Ontario Energy Board.

The company operating the Goreway Power Station in Brampton "gamed" the system for at least three years, according to an investigation by the provincial energy regulator. 

The investigation also delivers stinging criticism of the provincial government's Independent Electricity System Operator (IESO), slamming it for a lack of oversight. The probe by the Ontario Energy Board's market surveillance panel was completed nearly a year ago, but was only made public in November because it was buried on its website without a news release. CBC News is the first media outlet to report on the investigation.  

The excess payments to Goreway Power Station included:

  • $89 million in ineligible expenses billed as the costs of firing up power production. 
  • $5.6 million paid in three months from a flaw in how IESO calculated top-ups for the company committing to generate power a day in advance.   
  • Of $11.2 million paid to compensate the company for IESO ordering it to start or stop generating power, the investigation concluded "a substantial portion ... was the result of gaming."  

Most privately-owned natural gas-fired plants in the province do not generate electricity constantly, but start and stop production in response to fluctuating market demand, even as the energy minister has requested an halt to natural gas generation across the grid.  IESO pays them a premium for the costs of firing up production, through what it calls "generation cost guarantee" programs. 

But the investigation found IESO did little checking into the details of Goreway Power Station's billings. 

Goreway Power Station, located near Highway 407 in Brampton, Ont., is an 875 megawatt natural gas power plant. (Goreway)

"Conservatively, at least $89 million of Goreway's submissions were clearly ineligible by any reasonable measure," concludes the report.

"Goreway routinely submitted what were obviously inappropriate expenses to be reimbursed by the IESO, and ultimately borne by Ontario ratepayers,"

The investigation panel found an "extraordinary pattern" to these billings by Goreway Power Station, suggesting the IESO should have caught on sooner. The company submitted more than $100 million in start-up operating and maintenance costs during the three-year period investigated — more than all other gas-fired generators in the province combined. The company's costs per start-up were more than double the next most expensive power generator. 

"Goreway repeatedly exploited defects in the GCG (generation cost guarantee) program, and in doing so received at least $89 million in gamed GCG payments." 

Company fined $10M

The investigation covered a three-year period from when Goreway Power Station began generating power in June 2009. Investigators said that delays in releasing documents slowed down their probe, and they only obtained all the records they needed in April 2016.

The investigating panel does not have the power to impose penalties on companies it found broke the rules. 

The IESO fined Goreway Power Station $10 million. The company has also repaid IESO "a substantial portion" of the excess payments it received during its first six years of operating, but the exact figure is blacked out in the investigation report that was made public. 

The control room from which the provincial government's Independent Electricity System Operator manages Ontario's power supply. The agency is also responsible for managing contracts with private power producers.(IESO)

"Goreway does not agree with many of the draft report's findings and conclusions, including any suggestion that Goreway engaged in gaming or that it deliberately misled the IESO," writes lawyer George Vegh on behalf of the company in a response to the investigation report, dated Aug. 1.

"Goreway has implemented initiatives designed to ensure that compliance is a chief operating principle."     

The power station, located near Highway 407 in Brampton, is a joint venture between Toyota Tsusho Corp. and JERA Co. Inc. During the period under scrutiny, the project was run by Toyota Tsusho and Chubu Electric Power Inc., both headquartered in Japan. 

Investigators fear 'same situation' exists today

The report blames the provincially-controlled IESO for creating a system with defects that allowed the over-billing. 

"Goreway was able to — and repeatedly did — exploit these defects," says the investigation report. It goes on to explain the flaws "have created opportunities for exploitation, to the serious financial disadvantage of Ontario's ratepayers," even as greening Ontario's grid could entail massive costs.

The investigation suggests IESO hasn't made adequate changes to ensure it won't happen again, at a time when an analysis of a dirtier grid is raising concerns.   

"Goreway stands as a clear example of how generators are able to exploit the generation costs guarantee regime," says the report.

"The Panel is concerned that the same situation remains in place today." 

PC energy critic Todd Smith raised CBC News' report on the Goreway Power Station in Tuesday's question period. (Ontario Legislature)

After CBC News broke the story Tuesday, the provincial government was forced to respond in question period, amid a broader push for new gas plants to boost electricity production. 

"Here we have yet another gas plant scandal in Peel region that's costing electricity customers over $100 million," said PC energy critic Todd Smith. He slammed "the incompetence of a government that once again failed to look out for electricity customers." 

Economic Development Minister Brad Duguid said: "There is no excuse for any company in this province to ever game the system."

Nine companies overbilled $200M: audit 

The IESO found out about the overbilling "some time ago," said Duguid.

"They fully investigated, they've recovered most of the cost, they delivered a $10 million fine — the biggest fine on record."

The program that Goreway exploited became the subject of an audit that the IESO launched in 2011. The agency uncovered $200 million in ineligible billings by nine power producers, wrote the IESO vice president for policy Terry Young in an email to CBC News.

The IESO has recovered up to 85 per cent of those ineligible costs, Young noted.

Reforms to the design of the the program have removed the potential for overpayments and made it more efficient, he said, even as Ontario weighs embracing clean power more broadly. Last year, its total annual costs dropped to $23 million, down from $61 million in 2014.

 

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