THUNDER BAY – Ontario Power Generation (OPG) and the Independent Electricity System Operator (IESO) are taking action to help reduce all Ontarian’s electricity bills by reviewing operations to keep costs low for customers.
In late May 2018, significant corrosion damage was found to the boiler at Thunder Bay Generating Station, making the plant non-operational. Because of the high capital repair costs, high operational costs and limited time remaining on the IESO contract for Thunder Bay Generating Station, OPG and IESO determined that shutting down the station now is in the best interests of electricity customers.
Repairs to the Thunder Bay Generating Station would take approximately six months, leaving only one year remaining for the IESO contract. Because of a lack of demand, Thunder Bay Generating Station is rarely used for electricity generation. Based on historical annual average operational days, it is expected that the repaired boiler would only be used for 2.5 days.
This decision will save Ontario electricity customers $40 million and avoid $5 million in costs to OPG.
No OPG employee will lose their job by closing Thunder Bay Generating Station. OPG is in discussions with employee unions on redeployment opportunities for affected staff and work reassignments.
- Average days per year Thunder Bay Generating Station is operational: 2.5 days
- No OPG employees will lose their jobs.
- Cost of repairs: $5 million for the one year remaining on the contract. Based on historical averages this is an estimated 2.5 days of operations.
- Savings for Ontario electricity customers: $40 million