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PETER SUTHERLAND SR GENERATING STATION POWERS NORTHEAST ONTARIO

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PETER SUTHERLAND SR GENERATING STATION POWERS NORTHEAST ONTARIO

On the Abitibi River in northeastern Ontario, the Peter Sutherland Sr. Generating Station (GS) powers 25,000 homes and businesses with renewable waterpower. The development was a partnership between Ontario Power Generation (OPG) and Coral Rapids Power: a wholly-owned company of the Taykwa Tagamou Nation (TTN). The development is named after a respected elder from TTN. The $300-million project was completed in 2017.

On the Abitibi River in northeastern Ontario, almost two years of construction and eight years of planning have culminated in a new hydroelectric station capable of powering 25,000 homes and businesses with clean, renewable, and affordable power.

The 28-megawatt (MW) Peter Sutherland Sr. Generating Station (GS), located about 80 kilometres north of the town of Smooth Rock Falls on the New Post Creek, went into service on April 2017, well ahead of its scheduled 2018 target. In addition, the $300- million project stayed on budget.

That’s a testament to the solid planning and execution between OPG and its partner in the  development,  Coral  Rapids  Power, a wholly-owned company of the Taykwa Tagamou Nation (TTN). The development, which is named after a respected elder from TTN, has already had a positive impact on the First Nation community.

“We had about 50 TTN members working on the project at one point or another, which was significant for our First Nation partner,” said Paul Burroughs, Project Director at OPG. “They were part of the project team working to help make this a success.”

As part of the project agreement, Coral Rapids Power has a one-third ownership in the facility, meaning they will receive a share of profits from the station and be a partner for life over the 90 or so years the plant  is expected to operate. As TTN’s first foray into hydro development, the project took several decades to get off the ground before the First Nation agreed to partner with OPG in 2007 as part of a past grievances settlement. Construction of the station began in 2015.

Construction work on the Peter Sutherland Sr. Generating Station

The project provides the TTN community with a long-term investment opportunity and a sustainable economic base. Further, it provides spinoff benefits for the entire northeast region.

“The relationship we’ve built with OPG is based on a foundation of respect, trust, and all working toward a common goal,” said Wayne Ross, President of Coral Rapids Power. “There have been many benefits from this project for our community, including good-paying jobs, transferable skills and a long-term revenue stream.”

In addition, approximately $53.5 million in subcontracts were awarded to TTN joint- venture businesses during the construction phase of the station.

“The partnership is about creating a lifelong relationship with the First Nation,” said Burroughs.

The project has created skilled jobs and unique learning opportunities benefitting TTN members who will pursue work in a range of different career fields. Labour needs included engineers, equipment operators, labourers, drillers, cement workers, ironworkers, electricians, welders, carpenters, and camp support services.

At the peak of construction, there were about 220 workers employed on the project, many of whom reside in the local community.

“Our partnership is about more than just megawatts,” said Mike Martelli, President, Renewable Generation. “It’s also about creating skilled jobs and ongoing revenue that will benefit this community for years to come.”

In addition to the direct employment opportunities, existing local businesses and the regional economy benefitted from contracting work, as well as local project purchasing and expenditures. The estimated sales multiplier associated with the project is $1.50 – that is for every dollar expended an additional $0.50 was spent in northern Ontario.

The new station is operated by OPG’s northeastern operations control room in Timmins and is maintained by technicians located at a nearby work centre at Abitibi Canyon.

Inside the completed Peter Sutherland Sr. Generating Station

Peter Sutherland Sr. GS is the latest asset in OPG’s clean energy portfolio, which includes successful joint ventures with other First Nations. In early 2015, OPG and the Moose Cree First Nation celebrated the completion of the Lower Mattagami Hydroelectric Project, northern Ontario’s largest hydroelectric project in 50 years.

Ontario’s 58 northeastern hydroelectric facilities provide a clean, renewable, and reliable source of power to Ontarians year- round. Their combined capacity is over 3,000 MW.

Thanks to Todayville for helping us bring our members’ stories of collaboration and innovation to the public.

Click to read a foreward from JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President and CEO, Canadian Council for Aboriginal Business.

JP Gladu, Chief Development and Relations Officer, Steel
River Group; Former President & CEO, Canadian Council for Aboriginal Business

Click to read comments about this series from Jacob Irving, President of the Energy Council of Canada.

Jacob Irving, President of Energy Council of Canada

The Canadian Energy Compendium is an annual initiative by the Energy Council of Canada to provide an opportunity for cross-sectoral collaboration and discussion on current topics in Canada’s energy sector.  The 2020 Canadian Energy Compendium: Innovations in Energy Efficiency is due to be released November 2020.

 

Click below to read more stories from Energy Council of Canada’s Compendium series.

INDIGENOUS CONSULTATION AND ENGAGEMENT AT CANADA’S ENERGY AND UTILITY REGULATORS

COASTAL GASLINK PIPELINE PROJECT SETS NEW STANDARD WITH UNPRECEDENTED INDIGENOUS SUPPORT AND PARTICIPATION

Hydro-Québec takes partnerships, environmental measures and sharing of wealth to new levels

Read more on Todayville.

 

Business

Higher Capital Gains Taxes cap off a loser federal budget

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From Frontier Centre for Public Policy

By Lee Harding

Even former Liberal Finance Minister Bill Morneau told the Financial Post the capital gains tax increase would be “very troubling for many investors.” He added, “I don’t think there was enough effort in this budget to reduce spending, to create that appropriate direction for the economy.”

New taxes on capital gains mean more capital pains for Canadians as they endure another tax-grabbing, heavy-spending federal deficit budget.

Going forward, the inclusion rate increases to 66 per cent, up from 50 per cent, on capital gains above $250,000 for people and on all capital gains for corporations and trusts. The change will affect 307,000 businesses and see Ottawa, according to probably optimistic projections, rake in an additional $19.4 billion over four years.

A wide chorus of voices have justifiably condemned this move. If an asset is sold for more than it was bought for, the government will claim two-thirds of the value because half is no longer enough.  It’s pure government greed.

If you were an investor or a young tech entrepreneur looking for somewhere to set up shop, would you choose Canada? And if you’re already that investor, how hard would you work to appreciate your assets when the government seizes much of the improvement?

Even before this budget, the OECD predicted Canada would have the lowest growth rates in per-person GDP up to 2060 of all its member countries.

In a speech in Halifax on March 26, Bank of Canada senior deputy governor Carolyn Rogers put the productivity problem this way: “You’ve seen those signs that say, ‘In emergency, break glass.’ Well, it’s time to break the glass.”

What can Canadians bash now? Their heads against a wall?

Even former Liberal Finance Minister Bill Morneau told the Financial Post the capital gains tax increase would be “very troubling for many investors.” He added, “I don’t think there was enough effort in this budget to reduce spending, to create that appropriate direction for the economy.”

No kidding. Not since the first Prime Minister Trudeau (Pierre) have Canadians been able to count so reliably on deficit spending, higher expenditures, and more taxes.

Long ago, it seems now, when Justin Trudeau was not yet prime minister, he campaigned on “a modest short-term deficit” of less than $10 billion for each of the first three years and a balanced budget by the 2019-2020 fiscal year.

His rationale was that low interest rates made it a rare opportunity to borrow and build infrastructure, all to encourage economic growth. Of course, the budget never balanced itself and Canada has lost $225 billion in foreign investment since 2016.

The deficits continue though the excuse of low interest rates is long gone. Despite higher carbon and capital gains taxes, this year’s deficit will match last year’s: $40 billion. Infrastructure seems less in view than an ever-expanding nanny state of taxpayer-funded dental care, child care, and pharmacare.

Of course, the Trudeau deficits were not as modest as advertised, and all-time federal debt has doubled to $1.2 trillion in less than a decade. Debt interest payments this coming fiscal year will be $54.1 billion, matching GST revenue and exceeding the $52 billion of transfers to the provinces for health care.

In 1970, columnist Lubor Zink quoted Pierre Trudeau as saying, “One has to be in the wheelhouse to see what shifts are taking place . . . The observer . . . on the deck . . . sees the horizon much in the same direction and doesn’t realize it but perhaps he will find himself disembarking at a different island than the one he thought he was sailing for.”

Like father, like son, Justin Trudeau has captained Canada to a deceptive and unwelcome destination. What started as Fantasy Island is becoming Davy Jones’ Locker.

Lee Harding is a Research Fellow at the Frontier Centre for Public Policy

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Canada’s economy has stagnated despite Ottawa’s spin

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From the Fraser Institute

By Ben Eisen, Milagros Palacios and Lawrence Schembri

Canada’s inflation-adjusted per-person annual economic growth rate (0.7 per cent) is meaningfully worse than the G7 average (1.0 per cent) over this same period. The gap with the U.S. (1.2 per cent) is even larger. Only Italy performed worse than Canada.

Growth in gross domestic product (GDP), the total value of all goods and services produced in the economy annually, is one of the most frequently cited indicators of Canada’s economic performance. Journalists, politicians and analysts often compare various measures of Canada’s total GDP growth to other countries, or to Canada’s past performance, to assess the health of the economy and living standards. However, this statistic is misleading as a measure of living standards when population growth rates vary greatly across countries or over time.

Federal Finance Minister Chrystia Freeland, for example, recently boasted that Canada had experienced the “strongest economic growth in the G7” in 2022. Although the Trudeau government often uses international comparisons on aggregate GDP growth as evidence of economic success, it’s not the first to do so. In 2015, then-prime minister Stephen Harper said Canada’s GDP growth was “head and shoulders above all our G7 partners over the long term.”

Unfortunately, such statements do more to obscure public understanding of Canada’s economic performance than enlighten it. In reality, aggregate GDP growth statistics are not driven by productivity improvements and do not reflect rising living standards. Instead, they’re primarily the result of differences in population and labour force growth. In other words, they aren’t primarily the result of Canadians becoming better at producing goods and services (i.e. productivity) and thus generating more income for their families. Instead, they primarily reflect the fact that there are simply more people working, which increases the total amount of goods and services produced but doesn’t necessarily translate into increased living standards.

Let’s look at the numbers. Canada’s annual average GDP growth (with no adjustment for population) from 2000 to 2023 was the second-highest in the G7 at 1.8 per cent, just behind the United States at 1.9 per cent. That sounds good, until you make a simple adjustment for population changes by comparing GDP per person. Then a completely different story emerges.

Canada’s inflation-adjusted per-person annual economic growth rate (0.7 per cent) is meaningfully worse than the G7 average (1.0 per cent) over this same period. The gap with the U.S. (1.2 per cent) is even larger. Only Italy performed worse than Canada.

Why the inversion of results from good to bad? Because Canada has had by far the fastest population growth rate in the G7, growing at an annualized rate of 1.1 per cent—more than twice the annual population growth rate of the G7 as a whole at 0.5 per cent. In aggregate, Canada’s population increased by 29.8 per cent during this time period compared to just 11.5 per cent in the entire G7.

Clearly, aggregate GDP growth is a poor tool for international comparisons. It’s also not a good way to assess changes in Canada’s performance over time because Canada’s rate of population growth has not been constant. Starting in 2016, sharply higher rates of immigration have led to a pronounced increase in population growth. This increase has effectively partially obscured historically weak economic growth per person over the same period.

Specifically, from 2015 to 2023, under the Trudeau government, inflation-adjusted per-person economic growth averaged just 0.3 per cent. For historical perspective, per-person economic growth was 0.8 per cent annually under Brian Mulroney, 2.4 per cent under Jean Chrétien and 2.0 per cent under Paul Martin.

Due to Canada’s sharp increase in population growth in recent years, aggregate GDP growth is a misleading indicator for comparing economic growth performance across countries or time periods. Canada is not leading the G7, or doing well in historical terms, when it comes to economic growth measures that make simple adjustments for our rapidly growing population. In reality, we’ve become a growth laggard and our living standards have largely stagnated for the better part of a decade.

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