Government sources confirmed Thursday that McGuinty will merge the Energy and Infrastructure portfolios into one so-called "super-ministry" headed up by Health Minister George Smitherman - once dubbed "Furious George" for his aggressive, abrasive style in the legislature.

Infrastructure Minister David Caplan will take over as health minister and Gerry Phillips - who made it known Wednesday he no longer wanted to be energy minister - will remain in cabinet without a portfolio, sources said.

No other ministers are expected to leave cabinet or switch their posts in the shuffle, the first since the governing Liberals were re-elected last October.

Smitherman, an openly gay politician who also serves as deputy premier, refused to speculate Thursday on what his new duties might entail.

Despite his five-year fight to reduce surgical wait times and improve access to health care, there's still a "range of challenges" facing any potential successor, he said.

"I think I've had a very good run," said Smitherman, 44.

"There's lots of progress there that I can reflect on and I've enjoyed the privilege immensely. It's been extraordinary."

Phillips, 67, will be handing over the province's ambitious $26-billion plan to replace and refurbish Ontario's aging nuclear fleet, including building two new reactors at the Darlington nuclear generating station in Clarington, Ont., east of Toronto.

Infrastructure Ontario, a provincial Crown agency, is currently responsible for the province's nuclear plan.

Phillips kicked the rumour mill into high gear Wednesday when he indicated he would be reluctant to stay on until November, when the province is expected to award the reactors contract to one of three companies vying for the job.

Smitherman will also find himself in charge of billions of dollars in infrastructure programs across the province, a move some have suggested would help pave the way for a much-speculated bid to be Toronto's mayor.

Meanwhile, Caplan will oversee one of the largest budgets in the country - $40 billion this year - accounting for nearly half of every dollar the province spends on programs.

He will also have to answer critics who accuse the province of doing little to improve the deplorable conditions in Ontario nursing homes, an issue that's dogged Smitherman for months.

Caplan, who is perhaps best known for his handling of the province's lottery scandal, is the son of federal and provincial politician Elinor Caplan, who served as health minister in former premier David Peterson's cabinet.

The scandal, which mired the Ontario Lottery and Gaming Corp. in allegations that retailers were winning a disproportionate number of jackpots, hounded the governing Liberals last year, with repeated opposition calls for Caplan's resignation.

Smitherman dismissed suggestions that Caplan, a heavy-set 43-year-old who quit smoking in November, wasn't a good choice for health minister.

"I'm 30 pounds above where I was when I arrived as minister of health," he said. "I blame my recent marriage to somebody who works for a chocolate company."

McGuinty is only putting Smitherman in charge of the province's nuclear plan because he fears the public backlash that will erupt once taxpayers see the huge bill for the new reactors, said NDP Leader Howard Hampton.

"They recognize they're in trouble," he said.

"They recognize that both on the infrastructure side and hydro side, this is going to cost an awful lot of money that will really astound the public. So they're going to put in their favourite attack dog - somebody who never deals with the facts, just attacks, attacks, attacks - to try to defend themselves."

Smitherman has also overstayed his welcome in health by ignoring calls for an ombudsman investigation into C. difficile infections, which have claimed hundreds of lives in Ontario hospitals, said Progressive Conservative Leader John Tory.

The timing is suspicious, given the mounting job losses across the province and dire predictions that Ontario is spiralling into a recession, he said.

"I'd say to the people of Ontario: 'Hold on to your wallets and stock up on candles,"' Tory said.

"I just don't think this is a man who is going to provide any degree of security or comfort to the energy consumers of Ontario."