Liberal interference to cost minimum of $640M for cancelled gas plants

QUEEN’S PARK – The damning evidence against the Liberal government continues to mount as documents released Monday show further proof of political interference and potentially millions more in costs for the cancelled Oakville and Mississauga gas plants, Cambridge Ontario PC MPP Rob Leone said today. The cost is currently pegged at a minimum of $640 million.

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There are too many unanswered questions, Leone continued. In one instance, an email chain from Alicia Johnston, the Premier’s former Executive Director of Communications, to the OPA dated October 6 and 7, 2010, is redacted. Another email chain shows significant involvement from David Livingstone, who is now Premier McGuinty’s Chief of Staff. “The documents expose a troubling level of political interference from high-ranking Liberal operatives like David Livingstone and Alicia Johnston,” Leone stated. “Livingstone and Johnston interfered with the Ontario Power Authority’s business, hijacked the negotiation process with TransCanada and instructed executives on how much compensation to offer.”

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“The Liberal government has not been truthful with the people of Ontario,” noted Leone. “They have done everything in their power to hide the truth and conceal the facts. We need to properly investigate the true cost to taxpayers for cancelling the gas plants and the full extent of the Liberal Party’s political interference.” According to the Memorandum of Understanding between the government and TransCanada, the cancellation cost includes a $40-million payment for unrecoverable costs and an unexplained and perplexing payment of $210 million to purchase TransCanada’s gas turbines. The OPA documents also reveal at least $200 million is required for new transmission lines, bringing the cost of the Oakville cancellation alone to at least $450-million. However, the actual cost may be much higher. According to one OPA briefing document, TransCanada rejected the “government-instructed” counter-offer of $712 million made in April 2011, indicating it would seek litigation. In an email dated three months later, an OPA executive expressed concern over political interference, stating “This is frightful...We hold the contract and the Gov. (sic) is making deals around us.” “We have been clear, the McGuinty government must be honest about how much these cancellations truly cost,” concluded Leone. For further information, contact Christine Bujold christine.bujold@pc.ola.org

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