Ontario Premier Dalton McGuinty said that his government will be reviewing the approval of the proposed 280 MW Greenfield South gas-fired power plant. The Premier hinted that the project could be cancelled, telling reporters, "there's never a wrong time to do the right thing and that's what we'll do."

The plant, which has been under development for years, has faced strong local opposition regarding potential adverse impacts on air quality. Many local residents had assumed the project had died until the City of Mississauga issued a building permit earlier this month.

Cancelling the Greenfield South project may have an impact on the Ontario Power Authority's Long Term Energy Plan and Integrated Power Supply Plan. The IPSP consultation document released by the OPA in May expressly includes the Greenfield South project as "committed generation" (see Table 5 at page 3-16). Gas-fired generation is expected to play an important part of Ontario's supply mix by complementing intermittent supply, meeting local and system requirements and ensuring that adequate capacity is available as nuclear plants are modernized.

Many view the proposed review of the Greenfield South project as a political move by the Liberals, who may fear losing their Mississauga South seat. The McGuinty government faced similar criticism for its cancellation of a gas-fired plant in Oakville last October.