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Tag Archives: Global Adjustment

Ontario electricity bills up 97%; more wind power contracts to come

09 Tuesday Feb 2016

Posted by ottawawindconcerns in Renewable energy, Wind power

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Bob Chiarelli, electricity bills Ontario, Global Adjustment, HOEP, hydro bills Ontario, IESO, Parker Gallant, Scott Luft, wind energy, wind farms, wind power, Wynne government

Ontario gives away $4.5B in ratepayer dollars; Energy Minister Chiarelli persists in directive to add more intermittent, expensive wind power

Electricity costs up 97 percent in Ontario: power surplus exports rising

wind contract banner

February 8, 2016. Reposted from Wind Concerns Ontario

The GA or Global Adjustment first made its appearance on IESO’s Monthly Market Report in January 2007. As noted in the chart below, that year, the GA finished 2007 at $3.95 per megawatt hour (MWh) which means it cost Ontario’s electricity ratepayers about $600 million for the full year. In, 2015 the GA was just shy of $10 billion.

To be fair, the GA includes the price of “contracted” power, less the value given to it on the hourly Ontario electricity price (HOEP) market. As a result of Ontario’s high surplus of generating capacity and the intermittent presentation of wind and solar in periods of low demand, has resulted in the HOEP showing declining values. Despite declining values the cost of a kilowatt hour (kWh) of electricity increased from an average of 5.43 cents/kWh to 10.7 cents/kWh from November 1, 2007 to November 1, 2015 — up 97%. The upsetting part, and a driving force behind the 97% increase is surplus generation sold to our neighbours. We sell excess output to New York and Michigan, etc. without inclusion of the GA. The GA lost on those sales is charged to Ontario ratepayers and has become increasingly large. The chart indicates the “intertie flows” (exports/imports netted) initially cost Ontario ratepayers $20 million for 2007, but that has increased, and representing more $1.3 billion for 2015.

It is anticipated the annual cost of subsidizing surplus exports will continue to climb.

Scott Luft notes results for January 2016 are 20% higher than January 2015 for the cost of electricity as the HOEP was lower despite what Ontario’s Liberal government says about pricing stabilizing. With plans to add 500 MW of capacity for wind and solar, the climb will continue for at least another two years. Energy Minister Bob Chiarelli recently stated: “Our government’s focus is now on preparations for the next long term energy plan and the ways in which we can continue to drive down costs for Ontarians”. (Note to the Minister: a 97% increase does not “drive down costs”!)

Further reference to the chart points out addition of more wind and solar over the past nine years has driven up the percentage of renewables exported. The “Net Intertie” (net exports) increased from 19.6% in 2007 to over 57% in 2015.

What the Energy Minister needs to accept is this: we don’t need more intermittent and unreliable power.

That message is not getting through, despite evidence presented by the Auditor General of Ontario on several occasions and by numerous critics in the media.

Costing ratepayers $4.5 billion in after-tax dollars to help our neighbours is what’s happened. Perhaps Minister Chiarelli could suggest to Finance Minister Charles Sousa, that the money extracted from ratepayers provides no benefits to Ontarians. Perhaps a tax receipt is in order — that would help cash-strapped citizens, but there is a better idea.

The Energy Minister needs to immediately recall his directive to the IESO to acquire another 500 MW of contracts for intermittent wind and solar power.

© Parker Gallant,
February 7, 2016

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

Year Net Intertie 1. Global Adjustment Cost to Ratepayers % of Renewables to Wind Solar &
TWh 2. Million of $/TWh GA X Net Intertie Net Intertie Biomass generation
(millions)
2015 16.86 TWh $77.80 $1,311 57.20%        9.65TWh
2014 15.15 TWh $54.59 $846 47.00%        7.12TWh
2013 13.40 TWh $59.22 $794 48.50%        6.50TWh
2012 9.90 TWh $49.23 $487 59.60%        5.90TWh
2011 9.00 TWh $40.48 $364 56.70%        5.10TWh
2010 8.80 TWh $27.18 $239 46.60%        4.10TWh
2009 11.30 TWh $30.56 $345 31.00%        3.50TWh
2008 10.90 TWh $6.12 $67 22.00%        2.40TWh
2007 5.10 TWh $3.95 $20 19.60%        1.00TWh
       Totals 100.40 TWh $4,473     37.00TWh

Ontario’s $1B electricity month: wind surplus significant

05 Wednesday Nov 2014

Posted by ottawawindconcerns in Ottawa, Renewable energy, Wind power

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cost of electricity Ontario, electricity bills Ontario, electricity surplus Ontario, Global Adjustment, hydro bills Ontario, IESO, Independent Electricity System Operator, Ontario, Ontario economy, Ontario Electricity Costs, Ontario government, Wind Concerns Ontario, Wind Concerns Ontario executive Parker Gallant, wind power

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October 2014 Breaks Record for Ontario Electricity Costs and Losses

Cost to consumers of government energy policies for one month reaches $1 billion

TORONTO, Nov. 5, 2014 /CNW/ – The Ontario government’s policy of pursuing “renewable” sources of power at a premium and selling off surplus at a loss has resulted in a record-breaking month of expenses and losses for Ontario’spower consumers.

In a document prepared by former bank vice-president and Wind Concerns Ontario executive Parker Gallant and energy analyst Scott Luft, figures from the Independent Electricity System Operator (IESO) show that the Global Adjustment for Ontario power customers hit $1 billion.

The Global Adjustment is the difference between market rates for electricity, and what the government pays power generators. In the case of wind power, which has first right to the grid in Ontario, Ontario is buying high and selling low, says Gallant. “In the spring and fall every year, demand for power is low, but wind production is at a high—that is the problem with wind power: it is produced out-of-phase with demand. Because of the contracts the government has with the developers, we  pay top dollar for the power and when we don’t need it, sell for bargain-basement prices.  We pay about 13.5 cents per kilowatt hour for wind, and sell it off far below that; in October it was below 0.7 cents.

“This is economic disaster for Ontario,” Gallant adds.

Consumer power bills rose again on November 1st, and the government will also launch its new procurement process for wind and solar this month.

Wind Concerns Ontario has been opposed to the development of large-scale wind power in Ontario’s communities in part because it is an expensive yet unreliable source of power. The record-breaking October  figures should spur the government to halt its wind power program, says president Jane Wilson. “Any decision to approve one more wind farm, or to launch the new procurement process  for more contracts this month as planned, is completely unsupportable,” she says.  “Wind power doesn’t work, and Ontario can’t afford this experiment any longer.”

Ontario has contracts for 43 wind power projects not currently operational, which will cost consumers $16 billion over the next 20 years.

http://www.windconcernsontario.ca/october-2014-breaking-ontarios-record-for-electricity-costs/

SOURCE Wind Concerns Ontario

Canada News Wire November 5, 2014, 1:21 PM

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