Recession slows Ontario Power Generation
Ontario Power Generation's electricity output fell 19 per cent during its second quarter as lingering effects of the economic recession took their toll on power demand in the province.
The good news is that generation from OPG's fossil-fuel plants, primarily coal, plunged by two-thirds.
“This decrease was primarily due to lower electricity demand in Ontario and an increase in the electricity production from other Ontario generators,” the province-owned company said in a statement Friday.
Lower economic activity, a relatively cool and wet summer, and conservation programs in the province have combined to lower demand for electricity. The Ontario Power Authority has estimated that roughly 60 per cent of the fall in power demand is the result of reduced economic activity, with the rest coming from conservation and energy-efficiency initiatives.
The province also has new generation this year from wind and natural gas-fired plants that are easing reliance on coal-fired and nuclear power pay day loans.
OPG's electricity generation during the quarter was 20.9 terawatt-hours, of which 47 per cent came from regulated and unregulated hydroelecric generation and 44per cent from nuclear.
It means 91 per cent of OPG's generation during the second quarter was virtually free of greenhouse gases and other smog-causing emissions.
The company's profit for the period was $306 million, compared to $99 million a year earlier.
“In light of these conditions, we have intensified our efforts on prudent financial operations by instituting cost constraint measures and pursuing further cost reduction opportunities,” said OPG president and chief exective Tom Mitchell, in a statement.