Ontario Power Generation (OPG) and the Independent Electricity System Operator (IESO) have announced the permanent closure of the Thunder Bay Generating Station.
In a July 27 new release, the OPG said “significant corrosion damage” was found at the generating station’s boiler in May, rendering the plant non-operational. The province estimated repairs would cost $5 million.
“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,” the news release said.
The Thunder Bay Generating Station is known as a “peaking plant,” meaning it’s only used during peak times of energy use, when the provincial grid needs additional power to meet demand.
Located within city limits, next to the Lakehead Region Conservation Authority's Mission Island Marsh, the station was first placed into service in 1963, making it the oldest of OPG's thermal electricity-generating stations.
Should the boiler be repaired, the province said that, based on an historical annual average of operational days, it would only be used for about two and a half days per year.
Meanwhile, the repairs would take about six months, leaving just one year remaining on the IESO contract.
OPG estimated the shutdown would save Ontario electricity customers $40 million, and touted the move as an effort to “help reduce all Ontarians’ electricity bills by reviewing operations to keep costs low for customers.”
The operator said no OPG employees would lose their jobs as a result of the decision, and the OPG is currently in talks with employee unions on redeployment opportunities for affected staff and work reassignments.
