The alliance released a report on Tuesday recommending that the Ontario government prioritize negotiations with Hydroelectric and Nalcor energy for long-term energy thus backing hydroelectricity over nuclear energies solutions.

Ontario would expect hydroelectricity from the Churchill Falls project to fill the gap in the 2021 electricity supply by 28 percent. According to the alliance it would cost approximately 6 cents per kWh and transmission costs. Ontario consumers would pay a total of approximately 9 cents per kWh of total market cost. Moody's Investors Service said that the cost of electricity from the nuclear power plants would be a minimum of 18 kWh by May 2009.

Costs may be even higher if history repeats itself with breakdowns, late delivery and cost overruns all being part of the nuclear energy package, suggesting that these nuclear reactors might be least reliable as a renewable energy option.

A contract for the construction of the two nuclear reactors is expected to be signed by the government of Ontario by June 20, 2009 even though there exists several options for replacing electricity produced by its aging nuclear power stations.

Hydro Quebec is required to wheel power from the Churchill Falls generating station to the U.S./Canadian border according to a transmission service agreement that it signed with Newfoundland and Labrador Hydro.

A precedent has now been set that will affect future negotiations for transmission of power to Labrador and Ontario through Hydro Quebec,according to the alliance.

If the Lower Churchill hydroelectric project is successful, it will produce more than 3,000 megawatts, enough to power 1.5 million homes. It is unlikely to happen before 2010, but Nalcor says that it remains confident that it can finance the proposed $10 billion project making nuclear power an unlikely candidate for the immediate future.