to keep energy rates frozen until 2006, but reconsidered their options after discovering a $5.6 billion deficit left by the previous government. Homeowners and small business owners were paying 4.3 cents per kilowatt hour of hydro energy in 2003, even though the market rate was close to six cents. Premier McGuinty described this situation as "completely unsustainable" in light of the deficit, and Duncan announced that the rate would increase to 4.7 cents per kilowatt on 1 April 2004. In an effort to promote conservation, usage above 750 kilowatt hours was priced at 5.5 cents. Rates were increased a second time in March 2005, to 5 cents and 5.8 cents beyond 750 kilowatt hours. In making the change, Duncan acknowledged that his party had erred in its initial support for a freeze. Duncan was also forced to revise his government's plans to shut down all of Ontario's coal-burning generators by 2007. In 2004, he acknowledged that "one or two" generators would be required as backup in the event of a failure elsewhere in the system. In June 2005, Duncan announced that the Nanticoke coal plant would remain open past 2007. He later announced that the Lambton station would remain open as well. A 2006 government report recommended keeping some plants open until 2014. In November 2006, the McGuinty government asked the provincial power authority to create a new timetable for plant closure. Duncan has said that Ontario will reduce its coal consumption in the coming years, even if plants remain open. In April 2005, Duncan granted approval for four private companies to create new energy projects to replace the coal plants. The firms are expected to generate 1,675 megawatts of electricity. In a speech to the Canadian Club on 2 May 2005, Duncan announced that it was time for an "open and public debate" on the future of nuclear power. He instructed the Ontario Power Authority to begin developing a long term electricity plan – referred to as an Integrated Power System Plan – so that the government could "move forward judiciously when it comes to nuclear energy in Ontario." Shortly after assuming office, he cancelled the previous government's plans to privatize the Nuclear Inspection Services Division of Ontario Power Generation. In July 2004, based on a recommendation of the OPG Review Committee, which Duncan appointed to review the cost over-runs and delays plaguing the restart of the four reactors