Ontario Power Generation - Controversies and Criticism

Controversies and Criticism

OPG has attracted considerable controversy for the continued operation of some of its coal fired generating stations, which rank among Canada's largest individual air pollution sources. Because Nanticoke houses a massive 3,900 MW of generation capacity in one site, it produces "the most pollution in one site" despite being a reasonably clean plant per megawatt of power. Nanticoke Generating Station is North America's largest coal fired generating station and the single largest air pollution source for southern Ontario and northern New York state, attracting considerable criticism from environmentalists and legislators in both jurisdictions.

OPG's Lambton Generating Station is the second largest air polluter in the province.

The company endured significant criticism concerning the slow return to operation of some of its nuclear generating stations which had been shut down by the 2003 North America blackout. The problem was that all but one of the reactors were tripped and allowed to poison out, preventing an early reconnection to the electricity grid. Once shut down, all nuclear reactors take several days to return to service.

Another source of criticism was the extended and expensive refit to the reactor Unit 4 at the Pickering A Nuclear Station. In late 2003, the incoming Liberal government fired the three most senior executives at OPG on the heels of a report that the retrofit of a single reactor at the Pickering nuclear plant had come in $900 million over budget and three years behind schedule. The government also accepted the resignation of all remaining Board members. Management underestimated the amount of work and complexity of the Unit 4 refurbishment project and failed to do a complete scope analysis before starting on the project. Due to the uproar over the large cost overruns and delays, an independent review committee was commissioned to examine the future role of OPG in the electricity sector; the future structure of OPG; the appropriate corporate governance and senior management structure; and the potential refurbishing of Pickering A Units 1, 2, and 3. Former federal Finance Minister and Deputy Prime Minister John Manley chaired the review committee. Peter Godsoe, Chairman of the Bank of Nova Scotia, and Jake Epp, a former federal Cabinet Minister, Chair of the Pickering A Review Panel, and interim Chairman of OPG, also sat on the committee.

The experience of refurbishing Pickering A Unit 1 was significantly different with a much tighter adherence to schedule and budget. Unit 1 was returned to service in November 2005 providing 542 MW of generating capacity for Ontario's electricity system. It was decided that Pickering Units 2 and 3, which had considerably larger maintenance issues, would not be restarted as the business case could not be made.