Author Archives: Ottawa Wind Concerns

Smart meters not “smart” enough for Ottawa Hydro

07 Tuesday Jan 2014

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Frequent contributor to the Financial Post, energy commentator Parker Gallant noticed the story in the Ottawa Citizen on Hydro Ottawa and its struggle with “smart” meters, and sent this along.

Smart Meters not smart enough to suit Hydro Ottawa

The people who run Hydro Ottawa exhibit the same traits as our teens when Apple or Samsung announce the launch of a new i Pad or smart phone–they want the latest gadget. So, Hydro Ottawa trotted off to the Ontario Energy Board (OEB) with a request that they be allowed to accumulate the costs associated with replacing 96,000 smart meters because the newer models had a few new apps.

Once they completed the conversion they would then seek a rate increase.

The OEB declined to approve the conversion concept however, so any of those costs will have to be absorbed by Hydro Ottawa or by their only shareholder, the City of Ottawa. That may result in reduced dividends ($18.6 million in 2012) being paid to the city, and in a mill rate increase depending on how well Hydro Ottawa manage their costs.

The OEB did grant a rate increase of 1.4% which will add an average of $8.28 annually to the delivery line of Hydro Ottawa’s bills or, as Energy Minister Bob Chiarelli might say, the cost of five Tim Horton’s coffees.

It is disconcerting to learn however that, while the OEB declined the smart grid upgrade, the OEB did allow Hydro Ottawa the right to collect 50% of legislated tax changes (capital tax related) from ratepayers as noted from the OEB’s decision on that issue:

EB-2013-0143 In its Supplemental Report of the Board on 3rd Generation Incentive Regulation for Ontario’s Electricity Distributors, issued September 17, 2008, the Board determined that a 50/50 sharing of the impact of legislated tax changes between shareholders and ratepayers is appropriate.

The Application identified a total tax change of $142,451, resulting in a shared amount of $71,225 to be collected from rate payers. Hydro Ottawa requested the Board authorize the recording of this amount in Account 1595 for disposition in a future application given that the associated rate riders are negligible. The Board agrees with Hydro Ottawa’s request and directs Hydro Ottawa to record the tax sharing debit of $71,225 in variance Account 1595 by March 31, 2014 for disposition at a future date.

While the cost of the tax sharing will be negligible, it is worth remembering back to when the province lowered the corporate tax rate. That considerably reduced the tax allocations, referred to as “Payment in Lieu of Taxes” (PIL), that the local distribution companies (LDC) were directing to repayment of the “Stranded Debt”. What happened then was the extension of the time required to pay out the “residual stranded debt” via the Debt Retirement Charge (DRC) we find on our electricity bills. The drop in PIL payments did not reflect itself in reduced distribution charges or reduced electricity charges at that time. 

Now, with local distribution companies (LDCs) suddenly facing new or increased taxes, the poor ratepayers are expected to simply cough up more money. The people running the LDCs and the OEB must believe the Ontario ratepayers have bottomless wallets.

Parker Gallant,

January 7, 2013

Special to Ottawa Wind Concerns

Donations welcome: PO Box 3, North Gower ON  K0A 2T0

email us at ottawawindconcerns@gmail.com

Happy New Year

31 Tuesday Dec 2013

Posted by in Health, Ottawa, Renewable energy, Wind power

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moon over fourth line farmhouseBest wishes to all for a Happy New Year in 2014.

This past year has been an incredible demonstration of the sense of community people feel in the North Gower-Richmond-Kars area of the City of Ottawa, and the commitment to action to protect that community, and the health, safety and stability of the people who live in it.

A lot of work has been done to protect our community from industrialization by a huge, expensive and unnecessary wind power generation project that would be inappropriately located too close to over 1,000 homes and our school–yet more challenges await.

Thanks to everyone –more than 1250 people–who participated in our amazing petition drive, including the more than 30 volunteers who went door to door for weeks; what an achievement!!!

If you are not already on our email list to receive bulletins, please email ottawawindconcerns@gmail.com

Donations for expenses such as post box, meeting room space, mailings, etc. are most gratefully received.

Ottawa Wind Concerns

 

Denmark: not a happy place for wind power

30 Monday Dec 2013

Posted by in Health, Renewable energy, Wind power

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Here is a documentary from Denmark on the problems with wind power. The country has 5,000+ turbines already, and complaints of sleep deprivation and ill health are mounting.

Note that in this video a doctor says the association is clear but there is not much to be done about it as the people who have the money to do the research (i.e., the wind power biz) don’t have the inclination, and a wind turbine neighbour asks, WHY is the onus on ME to prove that I’m sick? Shouldn’t the wind power companies have to prove that their machines are safe?

Interesting to watch this, a week after the Dufferin Envirnmental Review Tribunal decision in which the conclusion once again is that there is no causal link between noise from turbines and health effects.

The video is here.

 

MPP MacLeod asks, where is Energy Minister Chiarelli?

27 Friday Dec 2013

Posted by in Health, Ottawa, Renewable energy, Wind power

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Transparent Logo

Open Letter
 

Honourable Bob Chiarelli

Minister of Energy

 

Dear Minister,

 

I am writing you for the third time in seven days regarding two matters of substantial concern to Hydro users in Ontario. Your absence in the last week has been noticeable and makes me question your commitment and desire to carry out your duties and mandate.

 

First, as you are aware in our Eastern Ontario region, Hydro One has initiated improper billing procedures and has threatened to cut of power during the winter for families who are unable to meet Hydro One’s unreasonable demands.  Last Friday, December 20th I requested a directive from you to Hydro One to be issued no later than Monday, December 23rd to correct Hydro One’s incompetent and dishonest billing system, however rural Eastern Ontarians are still waiting for you to display leadership.  No corrective measures have been taken.

 

Secondly and more pressing are the tens of thousands of people without power in Toronto, the GTA and throughout rural Southwestern Ontario.   As hydro crews make steady progress I remain concerned that you have still not contacted Opposition MPPs whose communities are impacted by power outages. As you know, it is very important for the Government to communicate with MPPS, even from other political parties, because their constituents turn to them for information and reassurance on the Government’s resolve to return power to their homes. Many Ontarians have gone without power for almost a week, unfortunately, I have been informed by my Progressive Conservative colleagues in affected areas that neither you, nor the Premier’s office or Hydro One have initiated communication with them. This is a basic failure of communication and one that I asked you to rectify in my Tuesday, December 24th follow up letter to you.  

 

Minister, as I am sure you can appreciate, maintaining power and restoring power is absolutely crucial to Ontarians during the winter.   It is -10 today.   I request your immediate action and an end to your week long silence in these two most pressing energy related matters.

Lisa MacLeod, MPP
Nepean-Carleton
Ontario PC Energy Critic 

Another month, another $162 million. Thanks, Bob.

19 Thursday Dec 2013

Posted by in Renewable energy, Wind power

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 chiarelli1.jpg.size.xxlarge.promo
I don’t need a calculator, I can do it all in my head.

 

Another month, another $162 million hit to Ontario’s ratepayers

 

The Independent Electricity System Operator (IESO) posted its November Market Summary on December 18 but so far, Energy Minister Chiarelli hasn’t claimed a profit.  He did just that on TVOntario’s The Agenda with Steve Paikin earlier this month, when he claimed Ontario generated a $6 billion profit on exporting electricity.

 

A look through the IESO market summary shows that Ontario exported an average of 2,243 megawatts (MW) each and every hour of November—that means a total of 1,614,960 MWh left Ontario destined for New York, Michigan and Quebec.  The average hourly energy price during the month was a paltry $14.93 per MW (or 1.5 cents per kWh), meaning revenue generated from those exports contributed just over $24 million to production and ancillary costs.

 

The average cost to Ontario ratepayers is also revealed in the market summary; that was considerably more, at $115.26 per MWh (or 11.5 cents per kWh). In other words, Ontario’s loss on the exported power was $162 million for the month.

 

It is obvious that much of the wind power generated throughout

November wound up either exported or

caused other generation to be exported or wasted

 

What that means to every one of the 4.9 million ratepayers in Ontario is a payment of an average of $33.00 each to subsidize those exports for November.  The exact role wind and solar played in those exports is not disclosed in the market summary, but wind production during November was high and totaled 721,000 MWh or 1,000 MW per hour.  The cost of that power production to the ratepayers is estimated to be almost $100 million, without including the costs of the gas plants backing wind up, spilled hydro, or steamed off nuclear at Bruce Power.  It is obvious that much of the wind power generated throughout November wound up either exported or caused other generation to be exported or wasted.

 

The total amount picked up by the average ratepayer in Ontario to support those exports so far in 2013 is approximately $280.00 each.   In announcing the new Long term Energy Plan, Energy Minister Bob Chiarelli’s forecast a rate increase of 42% increase over the next five years—it looks like that may come true much sooner than he forecast.

 

It is time to pull the plug on the 3,700 MW of uninstalled but contracted wind and the 1,400 MW of solar before the cost to subsidize electricity exports is more than the average ratepayer’s electricity bill!

 

The $6-billion dollar man, as energy analyst Tom Adams calls Minister Chiarelli, should seriously consider taking a math lesson or two before embarking on any more forecasts.

 

©Parker Gallant,

December 18, 2013

The opinions expressed here are those of the author and do not necessarily represent Wind Concerns Ontario policy.

New procurement plan for large power projects

14 Saturday Dec 2013

Posted by in Ottawa, Renewable energy, Wind power

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As we’ve been saying, the new “procurement” process for large-scale power projects (over 500 kW) has not yet been announced, but there are enough clues in the recently released Long-Term Energy Plan that we have an idea of what’s coming.

First of all, the Feed In Tariff program is gone for large projects; in its place is a Request for Proposal or RFP system, in which applicants will have to meet a number of requirements and rack up points. Those of us who respond to government RFPs will be familiar with the process.

The LTEP outlines several principles that will be applied when launching future energy procurement programs:

  • follow provincial and/or regional electricity system need;
  • consider municipal electricity generation preferences;
  • engage early and regularly with local and Aboriginal communities;
  • provide opportunity for a diverse set of participants;
  • identify clear procurement needs, goals and expectations; and
  • encourage innovative technologies and approaches, including consideration of  proposals that integrate energy storage with renewable energy generation.

As stated in the 2013 LTEP, the government plans to make available up to 300 MW of wind, 140 MW of solar, 50 MW of bioenergy and 50 MW of hydroelectric capacity in 2014.

Note that the wording is that the government will “consider” municipal generation preferences, but that doesn’t mean that if you don’t ant a wind power project, for example, you get to say “no.” Note the importance of the regional energy plans, and also the need to “engage” with local communities.

Again, Prowind has indicated to us that they will be reviewing the new requirements and then reapplying.

The people of Ottawa, and specifically North Gower and Richmond, are ready to act to protect our community, our health, our local economy, and our property values, from a subsidy-seeking power project that is NOT NEEDED.

Email us at ottawawindconcerns@gmail.com

P O Box 3 North Gower ON  K0A 2T0

Tribunal issues precedent-setting stay vs turbine construction

12 Thursday Dec 2013

Posted by in Health, Renewable energy, Wind power

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Precedent setting decision stops wind turbine construction

TORONTO, Dec. 12, 2013 /CNW/ – The Environmental Review Tribunal of Ontario has ordered a stay preventing the construction of two industrial wind turbines in Wainfleet, Ontario.

The motion, decided by Executive Chair Lynda Tanaka who oversees the ERT, OMB and three other tribunals, temporarily stops the construction of two turbine towers during the appeal of the Ministry of the Environment’s approval of the project. The Appellants, Skydive Burnaby Inc. and the company’s co-owner Mikel Pitt, argue the turbines are too close to their skydiving school.

“We’re so relieved,” said Pitt, “This project is a real threat to our business and the Tribunal appears to have recognized that at this early stage.”

The Appellants’ lawyer, Eric Gillespie, has argued a number of Industrial Wind Turbine appeals in Ontario.  Gillespie said, “this is a precedent setting decision, it’s the first time a stay has been ordered during a Renewable Energy Approval appeal. We’re very pleased for our clients.”

Gillespie’s associate, lawyer Ian Flett remarked, “the Tribunal gave all the parties a fair opportunity to make our cases, we’re happy with the result”.

The hearing of the main appeal is scheduled to begin January 6, 2014 in Wainfleet, Ontario.

SOURCE Eric K. Gillespie Professional Corporation

For further information:Ian Flett at 416-703-7034 or iflett@gillespielaw.ca

Prowind aims to get investor cash from community

12 Thursday Dec 2013

Posted by in Ottawa, Renewable energy, Wind power

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(Let us just say first, Not our community. Though we’d like to see them try.)

In this news item, Prowind Canada is reported to be trying to get cash from community members for its Gunn’s Hill project in south-western Ontario (not far from Woodstock).

from reNews, December 10, 2013

Developer ProWind Canada has helped establish the Oxford Community Energy Co-operative to partner in the 25MW Gunn’s Hill project in Ontario.

The proponent will give the coop up to a 49% equity share in the feed-in tariff proposal to help spread the local benefits, Prowind VP Juan Anderson told reNews. Community ownership adds up to 1 cent/kWh to the base FiT rate of 13.5 cents/kWh.

The group hopes to raise up to C$10m, said co-op secretary Christine Koenig. About 30 members have paid C$100 each to join so far. The co-op aims to offer a share purchase program in February 2014.

Ontario regulators meanwhile are assessing a renewable energy approval application for the 10-turbine, distribution-connected scheme.

“We expect it to be deemed complete this month,” said Anderson. A public comment period and six-month review will follow.

The proponent, a subsidiary of Germany-based Prowind GmbH, is finalizing a turbine supply agreement. The developer is also in discussions with contractors and expects to select a builder in early 2014, said Anderson.

The Oxford County project must meet a 50% Ontario content rule. Towers, blades and pad-mount transformers will be sourced in the province*, said Anderson.

Construction is expected to get underway in mid to late 2014 followed by commercial operation in 2015.

It is worth recalling that a few weeks ago, another local community group, the East Oxford Community Alliance, announced that it has hired lawyer Eric Gillespie and intends to sue Prowind and the landowners leasing land for turbines for $28 million, if the Gunn’s Hill project gets approval.

The community investment fund strategy is one being employed by some wind power developers to help them get approval from the government, as community “engagement” and “support” are now important in the approval process.

As regards now VP Anderson’s statement that all materiels for Gunn’s Hill will be from Ontario, their supplier of choice is a company called Broadwind Energy, headquartered in Illinois. Prowind’s HQ is in Germany. Once again, profits (i.e., subsidies from taxpayers and ratepayers) are NOT staying in Ontario but going out of this country. A search of Broadwind’s website reveals no information on any Ontario facilities.