Darlington upgrades may raise power rates

Darlington Nuclear Refurbishment faces OPG and Ontario Energy Board review amid proposed rate hike, rising hydro bills, electricity rates, and nuclear cost overruns, triggering debate over green energy policy, taxpayer impacts, and long-term power planning.

Hydro consumers could soon be zapped with another rate hike to pay for the refurbishment of the Darlington nuclear station.

The Ontario Power Generation asked the Ontario Energy Board, which regulates the energy sector, permission to raise rates next March to finance the upgrades. The OPG needs about $8.5 billion to $14 billion to extend Darlington’s life for another 30 years.

Consumers would fund the project by paying an extra $1.86 on an average monthly bill, the OPG said. However, critics say every nuclear project Ontario undertakes goes over budget and the real cost to fix Darlington could be between $21 billion to $35 billion.

For weeks, opposition parties have criticized the Liberals for allowing energy costs to soar due to time-of-use rates, spending billions of dollars in new electricity generation investments, and allowing an 8 per cent addition to hydro bills because of the HST the provincial portion of the tax.

Asking the public to pay for Darlington, amid a cash squeeze for families, could be the straw that breaks the taxpayers back, said NDP MPP Peter Tabuns Toronto-Danforth in question period.

“Many Ontarians can’t afford their hydro bills,” said Tabuns. “This government is plunging ahead with the Darlington refurbishment even though the costs are uncertain. Why is the government rolling the dice again on our hydro bills?”

The Progressive Conservatives accused the government of hiding a report on future energy costs. PC Leader Tim Hudak said they have uncovered a letter from the OEB that says they have completed a study on how much future energy costs will rise. “You have chosen to bury it,” Hudak said to Premier Dalton McGuinty. “You refused to release the OEB’s study on how much rates are going to go up for Ontario families. What’s with this secrecy?”

McGuinty did not acknowledge the report, instead he pointed to the Tories’ “flip-flop” on energy policy and how Ontarians have no idea where they stand on conservation.

“The fact of the matter is they gradually presided over the decay of the electricity system in the province,” McGuinty told the Legislature. “They refused to make essential investments in new generation and in new transmission. They refused to work with Ontarians so that we might together conserve electricity.”

Ontario’s green energy plan and rising energy costs, including the smart meter program rollout, are key issues emerging in next year’s provincial election.

Darlington supplies 20 per cent of Ontario’s electricity.

Jack Gibbons of the Ontario Clean Air Alliance, a coalition of health and environmental groups, said the government needs to stop financing Darlington on the backs of taxpayers.

“Consumers want the government to give them a new supply that is clean and green at a reasonable cost and nuclear power doesn’t meet that test — the cost is way too high,” Gibbons told a Queen’s Park news conference. “It doesn’t make sense to invest up to $35 billion rebuilding an old nuclear station when we can meet our electricity needs at a fraction of a cost by energy efficiency... and to import water power from Quebec.”

Gibbons pointed out Ontario has a bad history of cost overruns concerning nuclear projects. He figures the actual cost of the rebuild could be between $21 billion to $35 billion.

Ted Gruetzner, manager of the power company’s media relations, said the OPG disputes Gibbons’ numbers, adding they are preparing a detailed analysis to figure out the projects future price.

“Gibbons is being a clairvoyant on costs,” Gruetzner said.

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