(CNW) Consumers will have to pay almost $3 billion more a year for electricity in Ontario after 2008 if the provincial government does not alter its plans to shut down the coal-fired generating plants, warns an independent study released by the Association of Major Power Consumers in Ontario (AMPCO).
The study was conducted by ICF Consulting, a recognized authority in the energy sector. It examined the price impact of two scenarios - (1) phasing out coal by 2009 as the government has proposed; and (2) replacing the existing coal plants with new high efficiency coal plants with state-of-the-art
emissions control technologies.
The study concluded that the current plan to phase-out coal plants will result in: power prices being 25 per cent higher on average after 2008; consumer expenditures on power increasing by an average of almost $3 billion a year from 2008 to 2025; and Ontario becoming more dependent on costly natural gas, and a new importer of electricity by 2008.
The Ontario Power Authority is expected to be making its recommendations to government on the appropriate mix of electricity supplies later this week.