Clinton News-Record, 1978-02-02, Page 9•
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Jottings from Queen's Park
BY JACK RIDDELL
M.P.P.
Meetings of the Select
Committee on Ontario Hydro
have begun and will, no
doubt, continue for at least a
year. During this period of
minority government, the
recommendations of the
Committee will, almost
certainly, be quite far
reaching.
Ontario Hydro hat become
a giant enterprise, employing
thousands of people, milting
demands on capital funding
unprecedented in the history
of the province, and in-
fluencing the lives of every
citizen in Ontario, either
directly or indirectly.
Originally, it was en-
visaged that the Select
Committee's work would,
after a brief orientation
period for new members
unfamiliar with some of the
background, proceed to study
the problems of cost over-
runs incurred by Lummus
Corporation at the Bruce
Heavy Water Plants.
These over -runs were
initially brought to the at-
tention of the people of
Ontario by the Leader of the
Official Apposition, Dr.
Stuart Smith, early last fall.
At that time, investigations
revealed that the costs had
exceeded estimates by about
$140 million as of August.
Questions need to be an-
swered with respect to waste
on the job, the attitude of the
CLINTON NEWS -RECORD THURSDAY, FEBRUARY 2, 1978 -PAGE 9
Lummus Corporation to the
open ended contract, the
terms of the contract, and so
forth.
It was anticipated than the
second phase of discussion
would centre around the
recommendations made by
the previous Select Com-
mittee to both Hydro and the
Government regarding the
maximising and upgrading of
Hydrp's system. Obviously,
we need to know what Hydro
has done about those
recommendations, how far it
is prepared to go, whether or
not institutional barriers will
Utility Grade
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6 to 12 -lbs average
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6 CENTRE CUT CHOPS
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Side Bacon
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6 -oz vac pac 98,1 Sausages Mimi Sizzlers 11'1.48
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SEAFRESH, FROZEN
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Haddock Fillets Ib 1.59
COUNTRY, MINCED HAM OR FINE
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85¢ Fish Portions 3-I6 box 2 ,89
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have to be removed in order
to achieve success in im-
plementing the recom-
mendations.
If the more than forty
recommendations were fully
implemented, the efficiency
?f Ontario's electric power
generating system would be
improved, and consumers
would benefit by the resultant
cQst break.
Obviously, there will have
to be some discussion of the
advisability of large cen-
tralized utilities versus a
more decentralized system,
including the whole question.
of power corridors.
Hopefully, the methods of
selecting and siting these
power corridors will also be
discussed at some length.
Nuclear power in Ontario
will also have to be con-
sidered in some detail, and
recommendations will be
made to the Government on
future policy in this con-
nection. Many important
considerations must be taken
into account. There is the
question of spent fuel waste,
and its possible re -processing
- a possibility viewed with
some caution, even
trepidation, by many of the
most learned nuclear experts
in the world at this time.
Another matter for con-
sideration is the contingency
of a great deal of political
power in the hands of a few
highly trained technocrats.
There are also health and
safety risks attached to the
processing of nuclear fuel
before it is utilized in the
reactors and the safety of the
reactors themselves must be
taken into account.
„ It seems highly likely that
nuclear power •will have to
meet some of our energy
needs, at least in the early
part of the twenty-first
century. However, it should
not be permitted to become
Ontario's sole energy source,
and there are a number of
other viable alternatives
which must be developed. A
great deal of very useful
information has been
gathered by the Royal
Commission on electric
power planning under the
Chairmanship of Arthur
Porter and this will also be
considered by the Select
Committee.
While these matters will
certainly be discussed by the
Select Committee, they have
been placed in abeyance for
the time being, because of the
urgent need to consider the
question of the long-term
contracts signed by Ontario
Hydro with Denison Mines
and Preston Mines for the
supply of uranium fuel. Both
contracts are subject to
Ontario Government ap-
proval. Denison Mine ap-
proval must be given by
Order -in -Council by
February 28; Preston Mines
approval must be given by
October 31 of this year.
Premier Davis has asked the
Select Committee to consider
the contracts and "confirm"
that they are in the public
interest.
Ontario Hydro began
negotiations with the two
companies in 1974. The 200
million pounds of uranium
fuel involved is intended to
feed five committed reactor
complexes from 1980 to 2020,
and the contracts, if fulfilled,
will cover the largest
uranium fuel purchase in
history. Based on 1978 prices,
the purchase totals $6.5
billion dollars, representing a
net profit before corporate
taxes of about $2.5 billion,
depending on cost of
production. Each contract
contains escalator clauses
which tie the price paid to the
world price which could,
according to present
predictions, result in an
additional profit of about $1
billion for each $11 dollar rise
in the world price of
uranium: a further possible
$3 billion.
It is becoming increasingly
evident that while the
government has long known
of the need for uranium fuel,
no consideration has ' been
given to alternatives other
than simple purchase. As an
example, in 1973, Task Force
Hydro suggested that one
means of securing adequate
fuel supplies would be to
acquire control of a uranium
mine - a suggestion consistent
with free enterprise since any
corporation will consider
acquisition of a 100 per cent
supplier. That was five years
ago, when mining stock was
cheaper. This present con-
tract was negotiated right i•
the midst of a sellers' mark
the worst possible Um(
make a deal.