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Construction on cancelled power plant to continue for now: exec

Ontario Premier Dalton McGuinty is seen during a speech in Oakville, Ont., in this file photo.

THE CANADIAN PRESS / Colin Perkel/THE CANADIAN PRESS / Colin Perkel

The company contracted to build a gas-fired power plant in Mississauga says it has no plans to halt construction on the site.

Liberal Leader Dalton McGuinty said Saturday he would cancel plans to build the 280-megawatt plant in Mississauga, Ont., if he becomes premier again. The Liberals had been planning the plant for six years, but faced strong opposition from local residents.

Reached by phone at his Etobicoke office, Eastern Power vice-president Hubert Vogt declined to offer details about his company's work or say how much money has been spent so far, citing a concern that his comments could affect the political process.

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"For us to go on the record, no matter what we say, it'll be seen as supporting one party or the other," Mr. Vogt said. "We'll make decisions the best we can under the circumstances."

Mr. McGuinty has so far refused to discuss the cost of re-negotiating the contract, saying only that it is the "subject of continuing conversations."

The Mississauga plant is the second power plant the Liberals have said they would cancel in the past year. Last fall, the Ministry of Energy announced a gas-fired plant planned for nearby Oakville was "no longer required."

A spokesman from TransCanada, the Calgary-based company contracted to build the Oakville plant, said the company is still working out compensation for the cancelled plant.

"Last fall, the Ontario government announced a gas plant in Oakville was no longer needed and that the Oakville generating station TransCanada was contracted to build would not proceed," spokesman James Millar wrote in an e-mail. "At that time, we said discussions would take place to resolve the matter – those discussions continue."

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Parliamentary reporter

Kim Mackrael has been a reporter for The Globe and Mail since 2011. She joined the Ottawa bureau Sept. 2012. More

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