APPrO statement on the Minister of Energy's announcement about the second RFP for renewable energy, April 19, 2005

For immediate release: June 15, 2005

Coal replacement plan announcement a prudent step, Ontario Power Producers say

TORONTO, June 15, 2005 – The Association of Power Producers of Ontario (APPrO) welcomes the McGuinty government’s announcement today on the coal replacement plan.

According to APPrO President Dave Butters, the announcement provides much needed clarification, which APPrO has been calling for. “The transition from 7500 MW of coal capacity to cleaner supply alternatives represents the largest and most significant system change ever undertaken in Ontario, with many complexities. Now that a specific plan and timetable has been made clear, all parties can begin to develop the best solutions for replacement power,” he said.

Butters noted that in particular the directive to the Ontario Power Authority (OPA) to negotiate contracts with the seven “early movers” is very good news. “Understandably, this has been a major APPrO focus for some time, and the successful negotiation of contracts would allow these currently underutilized but highly-efficient and clean electricity generators to make a significant contribution to support the coal replacement strategy at a reasonable cost to Ontario consumers, while earning a fair and reasonable return on the significant investments they have already made,” he noted. Butters said this will also help to build further confidence among power producers in Ontario’s investment climate.

Butters also welcomed the announcement of major additional procurement processes through the OPA. “We applaud the government for moving forward to address the pressing need for more power in the Toronto and GTA areas, as well as to develop more highly efficient cogeneration or combined heat and power projects in the province. Obviously APPrO members will look forward to competing vigorously on these projects,” he added. The government anticipates as much as 2500 MW of new supply through these procurement processes, in addition to the RFPs already announced and ongoing negotiations with Bruce Power on the restart of Bruce A units 1 and 2.

APPrO is a non-profit organization representing more than 100 companies involved in the generation of electricity in Ontario, including generators and suppliers of services, equipment and consulting services. APPrO members produce power from co-generation, hydro-electric, gas, coal, nuclear, wind energy, waste wood and other sources. APPrO's members currently produce over 95% of the electricity made in Ontario.

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For further information contact:

David Butters, President

Association of Power Producers of Ontario (APPrO)
25 Adelaide St. E., Suite 1602, Toronto ON M5C 3A1
tel: (416) 322-6549
fax: (416) 481-5785
e-mail: david.butters@appro.org
website: http://www.appro.org

Association of Power Producers of Ontario (APPrO)
PO Box 1084, Stn. F, Toronto, Ont. M4Y 2T7
tel.: 416-322-6549 fax 416-481-5785
e-mail: appro@appro.org website: http://www.newenergy.org

For queries or suggestions, please forward to:

APPrO, PO Box 1084 Station F, Toronto, Ontario, M4Y 2T7

Canada

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Street address: 25 Adelaide St. East, Suite 1602, Toronto, Ontario M5C 3A1
(416) 322-6549 fax 416-481-5785 e-mail: APPrO@APPrO.org

Last update: June 15, 2005
URL: http://www.newenergy.org