Coal phase-out in 2010 would raise rates by 3.3%
Submitted by OCAA on Tue, 09/25/2007 - 23:00.
September 26, 2007 Coal phase-out in 2010 would raise rates by 3.3% September 26, 2007 - A complete phase-out of Ontario’s coal plants in 2010 would raise the province’s electricity rates by up to 3.3% according to a report released by the Ontario Clean Air Alliance (OCAA) today. If the Ontario Power Authority’s (OPA) electricity demand and supply forecasts are accurate, Ontario will be able to completely phase-out its dirty coal-fired power plants in 2010 by canceling its coal-fired electricity exports and by increasing the output of its five large new high-efficiency natural gas-fired power plants which will come into service in 2009 and 2010. Canceling coal-fired electricity exports in 2010 will reduce Ontario’s projected coal-fired generation by 50% and will raise rates by up to 1%. p> In addition, the OPA is forecasting that Ontario will generate 13 billion kWh of coal-fired electricity for domestic consumption in 2010. Displacing this coal-fired generation by increasing the output of our new high-efficiency natural gas-fired power plants will raise electricity rates by approximately 2.3% assuming the OPA’s forecast of natural gas commodity prices. ldquo;Advancing the coal phase-out date from 2014 to 2010 will save over 3,000 lives; prevent up to 1.6 million asthma attacks; and provide 50 to 80% of the total greenhouse gas emission reductions Ontario needs to achieve compliance with its Kyoto Protocol target for 2010”, said Jack Gibbons, Chair of the OCAA. ldquo;A coal phase-out by 2010 is the lowest cost and quickest option to achieve a dramatic reduction in our smog and greenhouse gas emissions”, Mr. Gibbons added. The OCAA’s report, The Ontario Power Authority’s Coal Phase-Out Strategy: A Critical Review, can be downloaded from: www.cleanairalliance.org. -30- For more information: |