Category Archives: Ottawa

Big Becky cost overruns: how come nobody got fired?

28 Tuesday Jan 2014

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Parker gallant on Big Becky: what is THAT going to cost you?

BigBecky

The big hole where your money goes

 

In February 2010 an article penned for the Financial Post I disclosed that the Ontario Power Generation’s OPG) new Niagara tunnel (“Big Becky”) was not only running late but had incurred substantial cost overruns—in excess of $600 million, in fact.
The effects of that overrun have not affected our electricity prices yet, but the writing is now on the wall based on the OPG application of September 27, 2013.  The increases requested in that rate application by OPG, if approved, will increase electricity rates by at least $6-7.00 per month ($72-84.00 annually) for the average 800-kilowatt (per month) consumer.   According to the submissions to the Ontario Energy Board (OEB), all of OPG’s “regulated” hydro rates will increase from 3.9 cents per kilowatt hour (kWh) to 4.4 cents per kWh due to the costs of the tunnel.  One-half a cent doesn’t sound like much, but when you consider that in 2012, OPG produced 18.5 billion kWh of unregulated hydro, it is time to bring out the calculators.
That overrun effectively means OPG is seeking to recover about $96 million annually for the cost of “Big Becky” for the next 50 years (amortization period), which equates to $4.6 billion for a tunnel originally estimated by OPG in the business case presented to their Board of Directors in 2005, to cost $873 million. It has cost 70% over that amount.
OPG is seeking approval for the foregoing as a rate increase for their “regulated” hydro as Big Becky is classified; that means it is considered “baseload” generation and its cost of production will be close to 10 cents a kWh.  At the same time they are also seeking approval for an even larger increase in their “unregulated” hydro which could generate as much as $300 million and was the cause of the media focus when they discovered the application.  The “anti-nuclear” lobby painted it as a rate increase related to OPG’s nuclear refurbishment plans, which was a false premise.
What the cost overrun on “Big Becky” demonstrates is that oversight at Queens Park is sadly lacking in the energy portfolio.   It is disconcerting to realize that this project was $600 million over budget, yet to the best of the writer’s knowledge no OPG employee or Board member was castigated or lost their job. A private sector firm would investigate and allocate “cause” to one or several individuals in the event a project of this size exceeded budget by a factor of 70%.
Perhaps it is time to privatize the electricity sector as the private, but regulated, natural gas sector has demonstrated they can do a much better job.
©Parker Gallant                                                                                                                                           January 25, 2014
The views expressed here are those of the author.
Reposted from Wind Concerns Ontario windconcernsontario.ca

London School of Economics study finds property value loss near wind power

26 Sunday Jan 2014

Posted by in Ottawa, Renewable energy, Wind power

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Research in Ontario on values of properties neighbouring wind power projects show a a range of loss on the order of 20-48%, as has been reported here.

The London School of Economics is about to publish a study based on transaction for properties near 150 wind “farms” studied over a 12-year period, which finds significant value loss.

Property value loss has been a hot-button issue for the wind power lobby, probably because it is proveable, and is a negative side effect of wind power projects, which can be very invasive in communities. The study is a sharp contrast to studies done by Ben Hoen in the United States, usually at the behest of and with funding from the wind power lobby. Mr Hoen famously produced a study claiming to have looked at over 7,000 properties—that was roundly criticized by people who know something about real property (Sunak & Madlener, Wilson, more).

This is just a preliminary news story; we look forward to reading the whole study on its release.

Property value loss in North Gower due to the proximity of the huge wind turbines (over 500 feet in height) to 1,000 homes, is estimated to be $134 million.

Donations to help us with legal advice are welcome; send to PO Box 3, North Gower ON  K0A 2T0

Proof wind turbines take thousands off your home: Value of houses within 1.2 miles of large wind farms slashed by 11%, study finds

  • Study by LSE found value of homes close to wind farms slashed by 11%
  • Home that costs £250,000 would lose £27,000 in value
  • Homes as far at two-and-a-half miles away could be reduced by 3%

By Sanchez Manning

PUBLISHED: 23:59 GMT, 25 January 2014 | UPDATED: 15:45 GMT, 26 January 2014

The presence of wind turbines  near homes has wiped tens of thousands of pounds off their value, according to the first major study into the impact the eyesore structures have on house prices.

The study by the London School  of Economics (LSE) – which looked at more than a million sales of properties close to wind farm sites over a 12-year period – found that values of homes within 1.2  miles of large wind farms were being slashed by about 11 per cent.

This means that if such a wind farm were near an average house  in Britain, which now costs almost £250,000, it would lose more than £27,000 in value.

Homes located within 1.2miles of wind farms can decrease in value by up to 11 per cent, a study has discovered

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Homes located within 1.2miles of wind farms can decrease in value by up to 11 per cent, a study has discovered

In sought-after rural idylls where property prices are higher, the financial damage is even more substantial. In villages around one of Southern England’s largest onshore developments – Little Cheyne Court Wind Farm in Romney Marsh,  Kent, where homes can cost close to £1 million – house values could drop by more than £100,000.

The study further discovered that even a small wind farm that blighted views would hit house values.

Homes within half a mile of such visible turbines could be reduced in value by about seven per cent.

Even those in a two-and-a-half-mile radius experienced price reductions of around three per cent.

Homes within a two-and-a-half mile radius could see reductions of up to three per cent

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Homes within a two-and-a-half mile radius could see reductions of up to three per cent

The report’s author, Professor Steve Gibbons, said his research was the first strong evidence that wind farms are harmful to house prices.

MORE ‘GREEN C**P’ TO BE CUT AS CARBON TAX IS SLASHED

Green taxes are set to be frozen to reduce soaring energy bills.

Whitehall sources say the Government is preparing to put the brakes on the ‘carbon tax’ on greenhouse-gas emissions, with an announcement expected in the Budget in March.

Prime Minister David Cameron has reportedly instructed aides to ‘get rid of all this green c**p’ to reduce energy bills, which currently average £1,350 a year.

Prof Gibbons, director of the LSE’s Spatial Economics Research Centre, said: ‘Property prices are going up in places where they’re not visible and down in the places where they are.’

The study, which is still in draft form but is due to be published  next month, focused on 150 wind-farm sites across England and Wales. It compared house-price changes in areas that had wind farms, were about to see one built  or had seen one rejected by the  local authority.

Last night Chris-Heaton Harris, MP for Daventry, said: ‘There’s plenty of anecdotal evidence – especially in my constituency – of house-price reductions near wind turbines. The question is, will anybody be liable for these losses in future?’

And Bob Ward, policy and communications director at the Grantham Research Institute on Climate Change and the Environment at the LSE, said: ‘These results are not really surprising as it is already known that people place a value on countryside views.’

A Department for Energy and Climate Change spokesman said: ‘Developments will only get permission where impacts are acceptable.’

A spokesman for Renewables UK, which represents the wind industry, said: ‘We will be analysing the conclusions closely when the final report is issued.’

Green Energy Act the most important issue for rural, small town Ontario

26 Sunday Jan 2014

Posted by in Ottawa, Renewable energy, Wind power

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With a possible provincial election in the spring, and a municipal election in October, this story will be of interest to political hopefuls: the Green Energy Act has been a disaster for rural/small-town Ontario.  While concerns about the GEA were at number one, worries about jobs came in second–we propose that the two are closely linked, as Ontario’s soaring power bills drive businesses away, and make it difficult for businesses to compete. Jobs are being lost, not created.

Wind Turbines a Concern for Rural Ontario

Sunday, January 26, 2014 2:41 PM by Fadi Didi
Bayshore Broadcasting poll reveals listeners and readers worried about Green Energy Act

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Bayshore Broadcasting News asked you what you think the biggest concern is for rural Ontario in 2014, and the Green Energy Act spun out at number one.

Thirty-six percent of respondents feel the Green Energy Act or environmental sustainability is a major worry for those living in the province’s country lands.

The poll results follow a year rich with wind turbine controversy, including 78 towns, municipalities, and counties declaring themselves unwilling to host turbines.

Ontario’s Progressive Conservatives refused to support the act, stating they would not support the GEA until a Health Canada study ruled winds turbine do not negatively effect health.

Just trailing the concern over Green Energy at thirty-three percent is the worry of employment opportunities in rural Ontario.

Respondents worried that the few jobs in country areas do not pay very well, and that even those jobs are scarce.

Farm revitalization and transportation improvement were of the least concern to respondents, each coming in at six percent.

Minister Chiarelli: you need “better control” of your power costs

16 Thursday Jan 2014

Posted by in Ottawa, Renewable energy, Wind power

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As per our post on Monday, a panel consisting of a local business representative, a social assistance agency, and a farm owner were guests on CBC’s Ottawa Morning show, to discuss the impact of rising electricity bills. They all said that time-of-use had affected them significantly, and the increase in electricity rates was just going to be worse. The farm owner, Peter Ruiter of Black Rapids Farm, said his cows need to be milked at the appropriate times every day, and there was no time-of-use flexibility for his operation. He invited Energy Minister Bob Chiarelli to come and see for himself.

Mr Chiarelli was interviewed on the show yesterday: his appearance was, in our view, a shocking demonstration of partisan politics but worse, one of complete ignorance of the power situation in Ontario. His claim that Ontario Power Generation made $7B for the taxpayers of Ontario is false, for example. And his claim that power bill increases are just a “blip” is insulting. While interviewer Hallie Cotnam caught him out on that, there was no question as to why the province continues to approve multi-million-dollar deals with wind power developers, for power we don’t need.

The link to the entire interview is here.

The rumour is that Mr Chiarelli is going to retire and not run in the next provincial election. Given his performance in this all-important portfolio, we think that is a “smart” decision.

Ontario’s electricity bills: rising costs for everyone

13 Monday Jan 2014

Posted by in Ottawa, Renewable energy, Wind power

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Ottawa Morning

Here from today’s CBC show Ottawa Morning, is a panel discussion on the impact of Ontario’s rising electricity bills. The panelists include a representative from the Preston Street BIA, a representative of an agency trying to help people in need, and an Ottawa area dairy farmer.

The message is a powerful one: rising electricity bills will result in increased costs for everyone including for food, as well as job losses as business try to cope.

Dairy farmer Peter Ruiter of Black Rapids Farm says the province ought to have figured out how it was going to pay for its renewables progarm. He invited Energy Minister Bob Chiarelli to come to his farm.

Listen to the program here.

 

 

Smart meters not “smart” enough for Ottawa Hydro

07 Tuesday Jan 2014

Posted by in Ottawa

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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

 

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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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