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Tag Archives: Bob Chiarelli

79th Unwilling Host: response to loss of democracy in Ontario

16 Sunday Feb 2014

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

≈ 2 Comments

Tags

Bob Chiarelli, Brinston wind farm, Green Energy Act, Kathleen Wynne, Lambton County, Not a Willing host, wind power Ottawa

Here from Sarnia, an opinion on last week’s vote at Lambton County to declare the municipality Not A Willing Host to wind power plants. Note that the report states wind turbines will soon be operating near Ottawa–the wind power plant at Brinston will begin operations this month, or in early March.

Unwilling host declaration born from frustration

By Peter Epp

Friday, February 14, 2014 7:09:16 EST PM

Wind turbines at the Erie Shores Wind Farm near Port Burwell generate power. Similar turbines may be popping up near Ottawa. (CRAIG GLOVER/QMI AGENCY)

Wind turbines at the Erie Shores Wind Farm near Port Burwell generate power. Similar turbines may be popping up near Ottawa. (CRAIG GLOVER/QMI AGENCY)

It’s been almost five years since the Green Energy Act received approval at Queen’s Park, and yet the public debate over the content of that legislation continues to be a sore point, especially in rural Ontario where most of the legislation’s impact has been felt.

Planning and decision-making for the location of wind turbines has been legally centralized in Toronto since 2009, and so local municipalities and their locally-elected councillors have had little to no influence in deciding whether a wind turbine or solar farm ought to be located within their political jurisdiction.

It is rare in Ontario, and in other democratic jurisdictions, when the wishes of the electorate, through their public representatives, are ignored so profoundly. Indeed, approximately 80 municipalities in this province have declared themselves to be “unwilling hosts” for wind turbine developments – a collective protest against legislation that smacks more of the Soviet than the Canadian style in getting things done.

Lambton County council joined that chorus on Wednesday. And in declaring that Lambton County was an unwilling host to wind turbines, it joined with several lower-tier local municipalities that have done the same.

Most protests are born from frustration and from the collective anger of an individual or group who have been placed in a position of futility. Removing all but a token comment on wind turbine developments has left local councils in Lambton County and elsewhere in a municipal no-man’s land. All they have left is the “unwilling host” designation.

None of this will change until there is a change in government at Queen’s Park. The Liberal government in power is loath to tinker with the legislation it crafted and supported five years ago. Even as recently as January 2013, during the heat of the Liberal leadership race, Kathleen Wynne declared that her role as premier would be to better convince the people of Southwestern Ontario that wind turbines are good for us, and that Toronto knows best.

And Wynne has been as good as her word. She’s tried to convince rural Ontario, but we’re not buying what she’s selling.

Read the full story here.

Parker Gallant: why your electricity bills are so high

06 Thursday Feb 2014

Posted by Ottawa Wind Concerns in Renewable energy, Wind power

≈ 1 Comment

Tags

Bob Chiarelli, cost-benefit analysis wind power, IESO, Ontario electricity bills, OPA, Parker Gallant

Tell me again:  why have Ontario’s electricity rates gone up so much?

If you live in an Ontario city and just received your first electricity bill for the year, you are probably looking at it and scratching your head!   Wow, did we really use that much electricity for those lights on the Christmas tree?

The answer is, no, you didn’t, but your electricity rates and your delivery rates have climbed a lot over the past several years, even though you may have used less electricity.

Ontario’s electricity sector is very big with annual revenues of about $20 billion (approximately 4.5% of total 2012 Ontario primary household income).  The sector has been undergoing massive changes over the past decade as the current Liberal government, supported by the NDP, decided we should go “green” and save the world from global warming or its current iteration, “climate change.”

So exactly what has caused the price of electricity in Ontario to rise at a level we haven’t seen in our lifetime?   Here is a list of the principal changes that have affected our electricity bills during the past decade. Many will continue to push our bills even higher over the ten years.   They are in no particular order and remember, they all cost you money.

§     $230 million for taxpayers and almost $900 million for ratepayers to move the gas plants.

§     $60-$70 million annually—the Ontario Power Authority or OPA’s budget. One of our “energy ministers” created the temporary (OPA) instructing them to develop a Integrated Power System Plan.  It’s no longer temporary even though it has never produced an acceptable plan.

§     $300 million plus annually for the OPA to run the province’s “conservation” program, to pick up your old fridge, provide coupons for purchases of lightbulbs and thermostats.

§     Rate increases: when you actually conserve electricity the program allows your local distribution company (LDC) to apply to the Ontario Energy Board (OEB) for a rate increase on their delivery rates because they lost revenue.

§     More: the same program supports local municipalities to convert their street lights to LED bulbs.

§     $20 billion, now reduced to $13 billion, for the OPA to sign that Samsung contract to pay them for putting up wind turbines and solar panels and (maybe) produce power over the 20-year contract.

§     70.2 cents per kilowatt for the OPA to develop the feed-in tariff (FIT) program which pays various school boards to put solar panels on school roofs, or for IKEA, Loblaws and Canadian Tire, etc. to put them on their stores, and then charge them 8 or 9 cents to buy back the power.

§     $11 billion because the energy minister(s) instructed Hydro One (transmission & distribution monopoly) to spend on both transmission and distribution assets, including a big chunk just to hook up solar panels and wind turbines.

§      $700.54 for each of Hydro One’s 1.1 million smart meters—a lot more than other LDCs spent. The total cost of smart meters for the province is around $2 billion .

§     Despite all that spending on smart meters Hydro One is continually messing up their distribution customer’s hydro bills due to faulty meters and a billing system that doesn’t work very well.(One radio commentator said it’s in constant “FAIL” mode.)

§     1,700 employees at Hydro One up 39% since 2005, but they actually distribute less electricity now than they did then.

§     $4.8 billion, as of spring 2013 for pension shortfalls at OPG and Hydro One. Ratepayers are on the hook for and must pay for through their monthly bills.

§     $600 million: the amount OPG went over budget on the Big Becky tunnel under Niagara Falls.

§     $2.6 billion because OPG was directed to move forward with the Mattagami project, for run-of-river hydro which will produce power principally in the spring when we won’t really need it.

§     $6 billion, the amount the Energy Minister recently said we made in “profit” selling our excess power but ratepayers subsidize those exports at a cost of over $1 billion every year.

§     We now pay wind turbine developers to not produce power and we also pay solar farm developers for not producing power because it might put Ontario’s grid at risk for blackouts or brownouts.

§     We now pay for meteorological stations to be erected at wind developments to measure how much power they might have produced, but we can’t use, and pay for it anyway.

§     Five: the top five executives at Hydro One earned almost twice as much as Hydro One paid out under the LEAP (Low-income Energy Assistance Program) grant program which was developed to alleviate “energy poverty.”

§     $7.7 billion: in 2005 when the Global Adjustment was called the Provincial Benefit it actually was a benefit and reduced electricity bills by $53.1 million, but for 2013 it was a charge on ratepayer’s bills that exceeded $7.7 billion.

§     $1.2 billion: on July 1, 2010 the Province started collecting the provincial portion of the HST and that 8% tax increase now costs ratepayers at least $1.2 billion annually.

§     140%: the amount the “Off-Peak” time-of-use rates have risen since they first appeared, moving them closer to “On-Peak” rates—so much for encouraging power consumption to off-peak hours as a conservation measure.

§     Discounts to big industry: because Ontario has added so much generation our Energy Minister has directed the OPA to start two new industrial incentive programs that will allow big industry to pay for electricity at huge discounts similar to what we are paid for our exports which ordinary ratepayers will subsidize.

§     3,600 megawatts of wind and 1,200 MW of solar: what the OPA has contracted for which will all be paid for at above market prices, and will push that Global Adjustment pot up much further than it was in 2013.

§     The “renewable generation connection” charge: what we pay for Hydro One to connect wind and solar projects to the grid.

§     $12 billion: what Ontario’s ratepayers have handed over to pay off the residual stranded debt of $7.8 billion but here’s the bad news—there is still $3.9 billion to be paid.

§     $1.5 billion: the cost for the Province via the IESO to develop a “smart grid,” some of which is now appearing on our bills under the “regulatory” line.

§     $200 to 400 million a year, we pay to subsidize electricity consumption for large industrial users.

§     $1 billion a year: what we pay gas generators through a “net revenue requirement,” so they can be at the ready when the wind’s not blowing or the sun is not shining.

§     $ 1 billion a year and more: what taxpayers have been paying for the past four years to provide ratepayers with a “Ontario Clean Energy Benefit” of 10%. It expires in one year, meaning electricity bills will jump by 10% more.

So, no, it wasn’t your Christmas lights that jacked up your bill.  Here’s hoping a light goes on somewhere in the halls at Queen’s Park, and the government takes action to stop this madness.

©Parker Gallant

February 3, 2014

The opinions expressed are those of the author.

Bob Chiarelli thinks you are stupid

03 Monday Feb 2014

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

≈ 1 Comment

Tags

Bob Chiarelli, Ontario Clean Energy Benefit, Ontario Debt Retirement Charge, Ontario electricity bills, Ontario Energy Board

Here from energy economist Robert Lyman, a comment on recent remarks made by Energy Minister Bob Chiarelli, on actions taken by his government, and whether electricity bills will rise (again).

BOB CHIARELLI THINKS YOU ARE STUPID

Ontario’s Energy Minister, Bob Chiarelli, was recently quoted in the Toronto Sun as saying, “When the OCEB (Ontario Clean Energy Benefit) comes off the (hydro) bill, residential customers don’t face additional costs.”

The accompanying news article explained that the OCEB was a subsidy funded by taxpayers that was imposed years ago when Ontario realized that the cost of its “green” energy policies would drive electricity rates much higher. Under this subsidy, ratepayers get a 10 per cent reduction off their electricity bills. This subsidy is scheduled to be ended in July 2014. To offset the increase in electricity rates, the Ontario government apparently plans to end the debt retirement charge (DRC).

What does this mean?

When former Ontario Energy Minister Brad Duguid announced Ontario’s Long Term Energy Plan in 2005, he predicted that this would increase rates by 7.9 per cent per year annually for the ensuing five years. The Provincial sales tax of 8 per cent was also added to electricity rates, and the actual increase in transmission, distribution and energy costs far exceeded 7.9 per cent per year. To “offset” this, Ontario introduced the Clean Energy Benefit, a subsidy from taxpayers to electricity ratepayers amounting to 10 per cent of residential bills.

The average ratepayer in Ontario consumes 800 kilowatts (kWh) of electricity per month. The ratepayer’s bill is now about $130.00 per month, which means that the OCEB reduces it by $13.00.

The debt retirement charge is a component of nearly every Ontario ratepayer’s electricity bill. Collection of the DRC began on May 1, 2002, at a rate of 0.7 cents per kilowatt hour (kWh) of electricity and it remains at that rate today. The charge remits to the Ontario Electricity Financial Corporation (OEFC), and thus to the Ministry of Finance, about $925 million per year. The DRC was authorized by the Energy Competition Act of 1998, which included the restructuring of the former Ontario Hydro into four main successor companies. The OEFC was given the responsibility to manage the legacy debt of the old Ontario Hydro, which resulted from the fact that, at its dissolution, the former Crown Corporation had debts of $38.1 billion and assets of only $17.2 billion. The $20.9 billion difference was to be repaid partially out of the future profits of OPG and Hydro One. The rest, called the “residual stranded debt’ was to be repaid by consumers directly via the DRC.

Here’s the problem. As of March 31, 2013, the Ontario government had collected $12.9 billion from the DRC, more than enough to eliminate the original “residual stranded debt”. The government claimed, however, that the debt had not been retired because in the meantime the OEFC had incurred other costs. The Auditor General of Ontario, in his 2011 Annual Report, took the position that the Ontario government should determine what the balance of the residual stranded debt was and provide periodic reports to the public on its progress in reducing the debt.

The Ontario Minister of Finance included a report in the 2012 Ontario Economic Outlook and the 2013 Budget on the residual stranded debt. The report revealed that the debt was $4.5 billion at March 31, 2012. The report gave no explanation or commitment as to when the debt would be fully paid and the DRC charge removed.

If one considers only the average rate of reduction from 2003/2004 to 2011/2012 of $925 million per year and projects this forward, it means that the residual stranded debt will not be paid off until the end of 2016/2017. By that time, the Ontario government would have collected about $15.3 billion to repay the original $7.8 billion. This assumes that no other unexplained charges get added to consumers’ bills.

Suddenly, the Energy Minister has discovered that the government does not need to go on collecting the DRC and so will delete it from consumers’ bills. What effect would that have?

That average ratepayer consuming 800 kWh per month would pay $5.60 per month in DRC. The loss of the OCEB would increase his bill by $13.00.  The net effect would be an increase of $7.40 per month. Add the HST and the additional cost increase becomes $8.11 per month, or $97.00 per year for the average ratepayer. If Mr. Chiarelli believes that consumers will be kept whole, he either does not understand mathematics or he assumes the average resident of Ontario will not understand it either.

So who gains and who loses? Ontario electricity ratepayers are today paying rates far higher than the government predicted when it instituted it green energy policy, even with the “Clean Energy Benefit”. Now, those rates will be higher still. Ontario taxpayers will no longer have to pay the subsidy, so they will save about $1.2 billion annually. However, who will end up paying the balance of the “residual stranded debt” that, up to now, the government has claimed is owed? Could there be some creative accounting done by the Ontario government to transfer the costs to ratepayers or taxpayers in some other way? We will just have to watch and see. You can be sure that the Liberal Party of Ontario will not be paying it.

Robert Lyman, Ottawa, February 3rd, 2014

The views expressed here are those of the author.

Big Becky cost overruns: how come nobody got fired?

28 Tuesday Jan 2014

Posted by Ottawa Wind Concerns in Ottawa

≈ 1 Comment

Tags

Big Becky, Bob Chiarelli, Ontario electricity bills, OPG, Parker Gallant

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

Parsing Bob Chiarelli’s radio interview

17 Friday Jan 2014

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

≈ 1 Comment

Tags

Bob Chiarelli, Ontario electricity bills, power costs Ontario, rising hydro bills Ontario, Scott Luft

Energy blogger Scott Luft has gone through Ontario Energy Minister Bob Chiarelli’s interview with the CBC the other morning, and found a few leeeetle problems with the facts…

Check out his blog here.

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

16 Thursday Jan 2014

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

≈ 1 Comment

Tags

Bob Chiarelli, CBC Ottawa Morning, cost of electricity to business, cost of electricity to farms, cost of wind power Ontario, cost-benefit analysis renewables, cost-benefit analysis wind power, electricity bills Ontario, Ottawa electricity bills

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 Ottawa Wind Concerns in Ottawa, Renewable energy, Wind power

≈ 2 Comments

Tags

Bob Chiarelli, CBC Ottawa Morning, energy poverty Ontario, Ontario electricity bills

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.

 

 

National Post: Ontario taxpayers don’t benefit from power exports

10 Friday Jan 2014

Posted by Ottawa Wind Concerns in Wind power

≈ 1 Comment

Tags

Bob Chiarelli, Green Energy Act, Ontario power exports

Energy Minister Bob Chiarelli likes to crow about how much money Ontario is making when it sells its surplus power. The truth is something far different, even in Mr Chiarelli’s millions-equal-Tim-Hortons-coffees world of mathematics.

Scott Stinson: Ontario powers up electricity exports but taxpayers see little benefit

Republish Reprint

Scott Stinson | January 9, 2014 6:58 PM ET
More from Scott Stinson | @scott_stinson

Jurisdictions that import electricity from Ontario pay close to the wholesale market price but consumers in the province pay much more.

Tyler Anderson/National Post
Jurisdictions that import electricity from Ontario pay close to the wholesale market price but consumers in the province pay much more.

At a time when Ontario has seen its manufacturing industry crater, the province has found that it can still do a booming business with one type of export: electricity.

Unfortunately for ratepayers, the business model is a little unsound. If energy were doughnuts, Ontario would still be expanding its dough supply, while sending ever more trucks full of discounted day-olds to places like Michigan, Minnesota and Quebec.

The province’s Independent Electricity System Operator on Wednesday released its year-in-review of the province’s energy data. Most of the numbers were as expected, with wind energy an increasing part of the supply mix, coal a decreasing part of it and nuclear energy remaining the backbone of the grid.

Energy exports, meanwhile, “rose to 18.3 TWh,” which is an awful lot of electricity: enough to power 300 billion 60-watt bulbs for an hour. The province’s exports have been on a steady upward trend; the 2013 total is a notable jump from 14.6 TWh in 2012 and from 12.9 TWh in 2011, according to figures released by the IESO last year. Exports have increased by almost 50% over that two-year period.

This would be a welcome development if the province and its ratepayers — which is to say, you — received a return for our electricity that was equal to, or ideally above, the amount that was paid to produce it.

But it does not. Jurisdictions that import electricity from Ontario pay something close to the wholesale market price of electricity, a number that changes hour by hour and is dependent on factors too numerous to list here. For 2013 the average wholesale price was between 2.5¢/kWh and 3¢/kWh. The cost paid to produce that electricity, again using the IESO’s own numbers, is on average about 8.5¢/kWh, or about four times the wholesale price.

Consumers pay, again depending on a host of factors, something much closer to the larger number, because built into the cost of our electricity is everything from capital investment to executive salaries to the payout for when gas plants are cancelled in the middle of election campaigns.

This trend, where Ontario ships excess electricity to its neighbours at steep discounts, is not new. In 2011, the province’s Auditor-General noted in a report that “the price Ontarians pay for electricity and the price it charges its export customers … have in recent years been moving in opposite directions.”

Read the full story here.

MPP MacLeod asks, where is Energy Minister Chiarelli?

27 Friday Dec 2013

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

≈ 1 Comment

Tags

Bob Chiarelli, electricity bills Ontario, Lisa MacLeod, power outage Ontario

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 Ottawa Wind Concerns in Renewable energy, Wind power

≈ 1 Comment

Tags

Bob Chiarelli, Ontario power exports, Parker Gallant, rising Ontario electricity bills, Tom Adams

 

 

 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.

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