What the Easter Bunny brought Ontario’s neighbours
Ontario’s ratepayers won’t care much for what the Easter Bunny delivered over the long weekend.
Over Friday, Saturday and Sunday on the weekend of April 3, 2015, the Independent Electricity System Operator (IESO) reported we exported 250,500 megawatt hours (MWh) of electricity to our friends and neighbours, but they gave us only $6.21 per/MWh for power that cost us at least $90 per/MWh to produce.
The exported power over those three days was equivalent to almost 24% of total Ontario Demand of 1,009,700 MWh.
On top of that, IESO indicated via their Planned Outage Report they constrained, spilled, idled or steamed-off another 238,000 MWh from a variety of generators which represented 23% of total Ontario Demand. Between exports and the outage requirements, ratepayers picked up the tab for 488,000 MWh or 51% of power we didn’t have a demand for.
So, why are we all told to conserve more?
Wind over that weekend generated about 58,000 MWh and represented 23% of exports. The cost of production was $7.1 million ($123 per/MWh) for which we were paid $360K ($6.21 per/MWh) — that’s a loss of $6.7 million.
Ratepayers also picked up the cost of the other 192,500 MWh exported at a cost of $17.5 million and the constrained production at a cost of about $12 million.
$36 million in losses
In those three days, Ontario’s electricity customers paid for all this and saw no benefit. Yet we are obligated to pick up almost $36 million in losses. Doing this every day would results in annual costs of $3 billion, with no benefit!
We need the Liberal government to tell the Easter Bunny to stay home next time and dole out the Easter treats to Ontario’s ratepayers and taxpayers, instead of our neighbours.
Toronto, April 7, 2015