The Financial Accountability Officer of Ontario (FAO) has issued a report on the costs of nuclear power that relies on outdated and incorrect information to draw a highly misleading picture of the risks of continuing to pursue high-cost nuclear projects in Ontario. This is a very disconcerting – and highly inadequate — piece of work from an agency that is supposed to provide an impartial, evidence-based look at major economic decisions facing the province.
The FAO’s flawed conclusions about the costs of Ontario’s plan to rebuild 10 aging reactors relies on the following false assumptions:
1. The FAO assumes the price of nuclear power will peak at 9.5 cents per kWh despite the fact that OPG is seeking to raise its price of nuclear power to 16.5 cents per kWh to pay for re-building the Darlington Nuclear Station.
2. The FAO assumes that the cost of importing water power from Quebec would be 12 to 16 cents per kWh despite the fact that last year Ontario and Quebec signed a seven-year electricity supply contract for 2 billion kWh per year at a price of 5 cents per kWh. The FAO also ignored the fact that this summer Hydro Quebec offered to sell us 8 billion kWh per year for 20 years at a price of only 5 cents per kWh and that the average price paid for power exported by Quebec in its most recent fiscal quarter was 4.2 cents per kWh.
3. The FAO assumes that the nuclear re-build cost overruns will not exceed 50% despite the fact that every nuclear project in Ontario’s history has gone massively over budget – on average by 2.5 times. It also ignores that fact that initial stages of the Darlington rebuild project are already over budget.
4. The FAO assumes that the cost of increasing transmission capacity between our two provinces by 3,300 megawatts (MW) would be $2 billion despite the fact that a May 2017 IESO report said that we could upgrade our capacity by 4,050 MW for only $1.6 billion – a fraction of the cost of rebuilding reactors.
Please sign our petition requesting Premier Wynne to say yes to Hydro Quebec’s offer to sell us clean, safe water power at one-third the cost of re-building the Darlington Nuclear Station.
Please pass this message onto your friends.
Angela Bischoff, Outreach Director
p.s. Listen to a 5 min. radio interview with Jack Gibbons on The Stafford Show this morning.