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The report applies a full cost accounting (FCA) approach to quantify the externalities of thermal power production in Eastern Canada, focusing on air pollution (SOx, NOx, VOC) and greenhouse gas (GHG) emissions. It finds that coal-fired power generates the highest externalities, with central estimates of $0.0394/kWh, which exceeds its marginal production cost of approximately $0.026/kWh. The study argues that internalizing these costs would shift investment toward natural gas, demand-side management, and renewable energy, and warns that Canada's Kyoto compliance strategy may forego domestic health co-benefits by favoring international emission credits over domestic reductions.