The Ontario Society of Professional Engineers (OSPE) today released an announcement on its blog stating that because Ontario has a surplus of power, it is constraining or wasting power that already comes from clean sources.
So, WHY has the government issued two contracts for MORE wind power in the Ottawa area, in Nation Township and North Stormont, where neither community supports the idea of becoming power plants? And the power is not needed anyway?
Here is the post. Readers are invited to go to the blog and post their comments. If you want to comment to the government directly, email Glenn Thibeault, Minister of Energy at firstname.lastname@example.org
Ontario Wasted More Than $1 Billion Worth of Clean Energy in 2016
“This represents a 58 per cent increase in the amount of clean electricity that Ontario wasted in 2015 – 4.8 TWh – all while the province continues to export more than 2 million homes-worth of electricity to neighbouring jurisdictions for a price less than what it cost to produce,” said Paul Acchione, P.Eng., energy expert and former President and Chair of OSPE.
OSPE shared these findings with all three major political parties, and will be at Queen’s Park this morning to speak to media regarding the importance of granting professional engineers more independence in the planning and designing of Ontario’s power system.
So why is Ontario wasting all this energy?
“Curtailment is an industry term that means the power was not needed in Ontario, and could not be exported, so it was dumped. It’s when we tell our dams to let the water spill over top, our nuclear generators to release their steam, and our wind turbines not to turn, even when it’s windy,” said Acchione.
“These numbers show that Ontario’s cleanest source of power is literally going down the drain because we’re producing too much. Speaking as an engineer, an environmentalist, and a rate payer, it’s an unnecessary waste of beautiful, clean energy, and it’s driving up the cost of electricity.”
In addition to curtailment, surplus hydroelectric, wind, and nuclear generation was exported to adjoining power grids in 2014, 2015, and 2016 at prices much lower than the total cost of production. This occurs because Ontario produces more clean electricity than it can use, so it is forced to sell off surplus energy at a discounted rate. Total exports in 2016 were 21.9 TWh compared to 22.6 TWh in 2015, and a significant portion was clean, zero-emission electricity.
“Taken together, those total exports represent nearly enough electricity to power every home in Ontario for an entire year,” said Acchione. “OSPE continues to assert that the government must restore the oversight of professional engineers in the detailed planning and design of Ontario’s power grid to prevent missteps like this from happening.”
Engineers have solutions
Because Ontario is contractually obligated to pay for most of the production costs of curtailed and exported energy, OSPE believes it would be better to find productive uses for the surplus clean electricity to displace fossil fuel consumption in other economic sectors. In the summer of 2016, OSPE submitted an advisory document to the Minister of Energy and all three major political parties detailing 21 actionable recommendations that would deliver efficiencies and savings, including reducing residential and commercial rates by approximately 25 per cent, without the creation of the subsidy and deferral account under the Ontario Fair Hydro Act.
OSPE also recommended the establishment of a voluntary interruptible retail electricity market in order to make productive use of Ontario’s excess clean electricity. This market would allow Ontario businesses and residents to access surplus clean power at the wholesale market price of less than two cents per kilowatt-hour (KWh), which could displace the use of fossil fuels by using things like dual fuel (gas and electric) water heaters, and by producing emission-free hydrogen fuel.
Ontario is currently in the process of finalizing its 2017 Long Term Energy Plan (LTEP), a multi-year guiding document that will direct the province’s investments and operations related to energy. This presents a key opportunity for the government to reduce Ontarians’ hydro bills by making surplus clean electricity available to consumers.
“It is imperative that we depoliticize what should be technical judgments regarding energy mix, generation, distribution, pricing and future investments in Ontario,” said Jonathan Hack, P.Eng., President & Chair of OSPE. “We are very concerned that the government does not currently have enough engineers in Ministry staff positions to be able to properly assess the balance between environmental commitments and economic welfare when it comes to energy.
Professional Engineers must be given independence in planning and designing integrated power and energy system plans, which will in turn benefit all Ontarians.”
About the Ontario Society of Professional Engineers (OSPE)
OSPE is the voice of the engineering profession in Ontario, representing more than 80,000 professional engineers and 250,000 engineering graduates, interns, and students.
While curtailment will decrease during the nuclear refurbishment program that began in October 2016 and the retirement of the Pickering reactors scheduled to occur from 2022 to 2024, it will rise again when the refurbished reactors return to service, unless the government takes action.
OSPE’s Energy Task Force has provided strategic engineering input to Ontario’s Ministry of Energy for more than ten years. The majority of OSPE’s recommendations have been fully or partially implemented over the past five years, saving consumers hundreds of millions of dollars per year. But more can be done if government engages Ontario’s engineers to optimize the use of the province’s clean electrical power system.
The 100-megawatt project will cost more than $400 million, while Ontario already has a surplus of power
EDP Renewables, headquartered in Madrid, has posted the site plan for its 100-megawatt “Nation Rise” wind power project, in North Stormont, about 40 minutes south and east of Ottawa.
Project Name: Nation Rise Wind Farm
IESO Reference Number: L-006351-WIN-001-100
Project Location: The proposed Nation Rise Wind Farm will be located on private and public lands in the United Counties of Stormont, Dundas and Glengarry in the western portion of the Township of North Stormont, Ontario, and bounded to the south by the Township of South Stormont and to the west by the boundary of the Township of North Dundas. The north portion of the site is delimited by the municipality boundaries of Russell and the Nation. Courville Road and MacMillan Road are the east boundaries of the project.
Dated at: the Township of North Stormont this 17th day of March 2017.
Other project documents including the draft noise impact assessment are available on the Nation Rise wind “farm” website here.
Residents interested in learning more about the impact of the power project on the area’s homes, environment and wildlife, and in supporting the group’s activities and legal fund, should contact the Concerned Citizens of North Stormont*, whose website is here.
The 20-year contract with the Independent Electricity System Operator (IESO) will cost Ontario electricity ratepayers about $436 million.
The Minister of Energy, Glenn Thibeault, has stated, meanwhile, that Ontario currently has a surplus of power (which is being sold off at prices below what power developers are paid). The Nation Rise contract could be cancelled under a pre-construction liability clause for $600,000, according to IESO documents.
Minister Thibeault told a business audience in Toronto last year that the government’s “arbitrary” selection of wind power led to “sub-optimal siting” and “heightened community concerns.”
North Stormont is a Not A Willing Host community.
Concerned Citizens of North Stormont leader Margaret Benke, at a recent information event in Finch, Ontario
The Premier of Ontario put out a news release on March 2, claiming the government was going to reduce Ontario’s electricity or “hydro” bills substantially.“I’ve heard from you loud and clear,” Kathleen Wynne said in her statement. “Nobody should have to choose between keeping the lights on or buying groceries.”
The Ontario Liberal government still claims the high electricity prices were because of improvements it “had to” make to the system. The news release concluded with these statements.
“We are – and always will be – committed to making Ontario a fairer and more inclusive place for everyone. And fairness means ensuring government investments don’t disproportionately affect today’s electricity ratepayers. One generation of ratepayers should not have to pay for the sins of the past and for a system that will benefit Ontario for decades to come. So our plan reduces costs today and stretches out costs over the long term so rates are fairer for everyone.”
Fairness. We’ve heard that before, like “transparency.” But again, the government is being disingenuous. Its latest move is simply stretching out the costs of its policy decisions, not taking action to reduce costs. (Our favourite pronouncement on this comes from electricity analyst Bruce Sharp who calls this tactic, “delay and pray.”)
Not reducing costs
The truth is, the government has signed more expensive wind power contracts for power the province doesn’t need.
At the moment, these six contracts, awarded in 2016, total $3.3 billion in costs over 20 years. In addition, there are five more contracts for wind power projects that were approved but which are not yet on the grid –including White Pines, Amherst Island and Fairview Wind which are all in legal contests– that add up to another $1.8 billion.
The total for wind power contracts awarded, which represents new costs no yet on Ontario electricity ratepayer bills, is $5.1 billion.
That is not “reducing costs today”.
The government needs to cancel the 2016 wind power contracts (which contain clauses for pre-construction liability should the government cancel), and buy out of other contracts.
Wind power contracts should be cancelled to control electricity costs: Mike Baggott of Ottawa Wind Concerns
Ottawa Wind Concerns was an invited guest speaker this week at a pre-budget consultation event held by Nepean-Carleton MPP Lisa MacLeod, at the Alfred Taylor Centre in North Gower.
Executive member with the group and North Gower resident Mike Baggott told the audience that while Ontario’s electricity bills are among the highest in North America, more costs, specifically expensive wind power contracts awarded to power developers, were yet to come.
“Everyone wants to do the right thing for the environment,” Baggott explained, “but has the Ontario government done the right thing?” Two Auditors General said there was never any cost-benefit or impact analysis for the province’s green energy plan, and the Wynne government pays twice as much for renewable energy as other jurisdictions do. The expensive wind contracts are among the factors pushing electricity bills up.
“As high as our bills are now,” Baggott said, “they will get worse if projects in Ontario recently awarded contracts are allowed to proceed.”
He noted the power projects in La Nation, east of Ottawa, and North Stormont –both opposed by the local communities — will cost Ontario ratepayers over $600 million for the 20-year contracts.
In all, Ontario is facing $5 billion in new wind power contracts, at a time when the province has a surplus of power. Wind power also cannot demonstrate any benefits to the environment, Baggott said.
“It’s time to stop digging the hole,” Baggott concluded.
The main speaker at the event was Parker Gallant, a former banker whose energy sector analysis is frequently published in The Financial Post, who explained line by line, “What’s in Your Hydro Bill.”
MPP MacLeod outlined steps that can be taken to control electricity costs, and answered questions from the audience.
“It’s hard not to get depressed when you hear, line by line, how we got here with our electricity bills,” commented Rideau-Goulbourn councilor Scott Moffatt.
Parker Gallant: what’s in your hydro bill? A lot of government mistakes
Leeds-Grenville councillors say rural electricity rates are negatively impacting their constituents, farmers and businesses, although Burnbrae Farms – one business cited by council members as a victim of high rates – says electricity costs were not behind its recent decision to expand its operations out of province. The Burnbrae operation near Lyn is shown on Tuesday morning, Feb. 7, 2017. (Ronald Zajac/The Recorder and Times)
Frustration at Ontario’s high hydro rates boiled over at a United Counties meeting Tuesday as mayors railed against an “out-of-touch” provincial government that is indifferent to the plight of rural Ontarians.
“Seniors are losing their homes, seniors are going to food kitchens,” said Mayor David Gordon of North Grenville, who said he knows of 89- and 90-year-old farmers in his township who have to continue to work because they can’t afford their electricity bills.
Gordon said that if Americans were experiencing the same increasing power rates as in Ontario they would be demonstrating and rioting in the streets.
“Up here it’s just ‘deary, deary me’,” he said. “What’s going to happen when somebody dies because they don’t have any heat?”
Augusta Mayor Doug Malanka said the government has failed to consider the unintended consequences of high hydro rates.
As an example, Malanka cited the Prescott Curling Club, which has complained to the Ministry of Sport, Tourism and Culture that its escalating power bills put the future of the club in doubt.
Malanka said the club did extensive energy-saving upgrades to its rink several years ago. Despite this, the club’s power bill increased by $13,000 over an 18-month-period, bringing it to $25,000 annually, he said, noting that the rink operates only six months a year.
Club president Ron Whitehorne said the hydro bill now accounts for half of the club’s budget, and the rates continue to rise despite the $120,000 spent on renovations to make the rink more energy-efficient.
The rising rates, coupled with the depletion of the club’s capital reserves to pay for the improvements, has put a real squeeze on the volunteer-run club, Whitehorne said.
Malanka said counties mayors raised the hydro issues with Liberal MPP Bob Delaney, parliamentary assistant to the energy minister, at a meeting during last week’s Rural Ontario Municipal Association conference. Delaney was initially defensive about the mayors’ complaints, Malanka said, but he later agreed to a followup meeting with counties’ representatives. Warden Robin Jones agreed to contact Delaney to arrange a followup meeting.
Gordon said that the Liberal government has lost touch with the average Ontarian.
“These people living in Toronto don’t care because they are living in their fancy condo on the 27th floor,” he said.
Rideau Lakes Mayor Ron Holman, who chairs ROMA, said the Ontario government needs to set “predictable, prudent, long-term” hydro rates so that businesses and residents can plan for the future. Instead, the government seems to be taking an ad-hoc approach to hydro by fiddling with rates in response to the “flavour of the day,” he said.
Holman said Ontario Premier Kathleen Wynne is continuing to promise “adjustments” to hydro rates in the next budget.
“What does that mean? I have no idea. What assurance does that give to individuals or businesses that want to come to our community? It doesn’t,” he said.
Several mayors pointed to Burnbrae Farm’s decision to build new hen houses in Quebec, instead of Ontario, as a consequence of high energy costs. They were basing their comments on a news report that said the egg producer, which is centred in the United Counties of Leeds and Grenville, was expanding to Quebec to escape Ontario’s hydro rates.
But Margaret Hudson, president of Burnbrae Farms Ltd., flatly denied that hydro rates played a part in the decision.
“The cost of electricity was never a factor in our decision on where to locate our new farm,” Hudson said in a statement Tuesday.
Public declaration demands cancellation of wind power procurement, and re-focus of energy policy by the Wynne government
January 9, 2017
The Ontario Multi Municipal Group has issued a public declaration stating it wants the “exploitation” of rural Ontario by the wind power industry, aided by the Ontario government, to end.
“The implementation and expansion of renewable energy (industrial-scale wind turbines and large solar power projects) has developed to the point that it has caused hydro costs to increase, caused a division between rural and urban municipalities, and caused the citizens of Ontario to lose faith in democracy,” says Ron Higgins, Mayor of North Frontenac, in the document.
The municipal group was formed at the last meeting of the Association of Municipalities of Ontario (AMO) after 115 municipalities, or 25 percent of all municipalities in Ontario, passed resolutions demanding that municipalities get final say in the siting of renewable power projects.
“We are now speaking out on behalf of all those communities,” Higgins says.
Rights of communities ‘neutralized’
The Green Energy Act of 2009 removed the right to carry out local land-use planning for power projects –the Multi Municipal Group says that’s wrong. “It neutralizes the rights of residents of rural Ontario to advocate for, rely on and claim the benefit of sound land-use planning principles,” Higgins says. “It amounts to a form of discrimination.”
In the public declaration document, the group lists the impact of Ontario’s wind power program, saying it has not brought the economic benefits promised by the McGuinty government and in fact has resulted in an economic burden and energy poverty. They also say that no environmental benefit has been demonstrated and that “the natural world is suffering” because of large-scale turbines which are disrupting the natural environment and harming wildlife such as migratory birds and endangered species of bats.
Wind power a ‘false hope’ for the environment
Wind power has created “false hope” of steps to be taken to combat climate change and protect the environment, says the Multi Municipal Group. And, the Government of Ontario has ignored knowledge of the negative impacts of invasive wind power technology.
The group demands that all procurement of wind power be stopped, and the Green Energy Act repealed. They also recommend that the government base future policies on generation capacity and conservation, and use current energy supply assets.
“Our rural communities are unprotected against the exploitation [by] renewable energy,” Higgins concludes. The municipalities have no choice but to declare their position to the government and the public formally.
Former banker and now energy analyst Parker Gallant has prepared a summary of submissions to the Ontario Ministry of Energy, which last fall asked for input to a new Long-Term Energy Plan (LTEP).
Aside from the vested interests in wind power, the stakeholder groups like the Canadian Federation of Independent Business, Canadian Manufacturers and Exporters, and the Ontario Society of Professional Engineers all recommended the government act now to get costs down. And that includes, getting rid of wind power.
From the article, an excerpt on two of the submissions made to the government.
Strategic Policy Economics – Marc Brouillette’s excellent submission on behalf of Bruce Nuclear also carries some sane observations such as “Wind generation has not matched demand since its introduction in Ontario” and, “Over 70% of wind generation does not benefit Ontario’s supply capability.” And this one, which is becoming more evident as ratepayers are forced to pay for curtailed generation: “Wind generation will not match demand in the OPO Outlook future projections as 50% of the forecasted production is expected to be surplus.”
The recommendation that will cause the most handwringing will be: “The LTEP should integrate the objectives of Ontario’s environmental, energy, industrial, and economic policies for the long-term future benefit of Ontarians.”
Wind Concerns Ontario – The coalition of community groups and individuals throughout Ontario had this to say by way of advice to the Ministry: “The government policy to promote “renewables” such as wind and solar have been a critical factor in the grave economic situation today. Wind power for example, now represents 22% of electricity cost, while providing only 5.9% of the power. Worse, that power is produced out-of-phase with demand, as has been detailed by two Auditors General; so much of it is wasted. This is unsustainable.
“Clearly,” WCO continued, “the direction for the Ministry of Energy is to formulate a new Long-Term Energy Plan that will take immediate action on reducing electricity costs. Those actions must include a review of all contractual obligations for power generation from wind, and action to mitigate further costs to the system, and the over-burdened people of Ontario.”
WCO called for cancellation of all the wind power contracts given in 2016, the FIT 5.0 program, and further, cancellation of all contracts for projects not yet built or which are not going to make a critical commercial operation date. In fact, all wind power contracts should be reviewed and paid out, as Ontario can save money by eliminating the need to dispose of the surplus electricity.
WCO vice-president Parker Gallant and president Jane Wilson speak on Ontario’s mismanaged electricity sector, energy poverty, wind turbine noise regulation, and what’s ahead for 2017
(C) Wind Concerns Ontario
Q:You’ve been telling people about the impact of renewables, specifically wind power, on Ontario’s electricity or hydro bills. How much of our electricity bills is due to the wind power/renewables program in Ontario?
Parker Gallant: I recently reviewed the cost of wind and solar generation relative to its contribution to Ontario’s demand for electricity and its impact on our electricity costs is shocking. Wind and solar in the first six months of 2016 delivered 8% of our generated power and represented 35% of the Global Adjustment which appears set to average over $1 billion per month. That represents a cost of over 36 cents a kilowatt hour (kWh), including the hourly Ontario energy price (HOEP).
Q: Parker, you’ve also been telling people about the Global Adjustment or GA, which is where a lot of charges are hidden. Do you think these charges should be detailed on our bills, or is that even possible?Parker Gallant: While I believe in principle the GA should be revealed on our monthly bills, in practice, that would require reams of paper. How will the local distribution company explain how much you are billed for curtailed wind generation or the meteorological stations that measure the amount of curtailed wind that might have been generated? How to explain, say, the cost of spilled hydro or steamed off nuclear or the water fuel fee, or how to tell the ratepayer how much they are subsidizing the rates for large industrial clients, or what it is costing under the rural and remote rate plan (RRRP) that transports diesel fuel to remote First Nations, among dozens of other items included in our monthly bills?
Q: The Premier and Energy Minister are now saying that parts of their policies have been a “mistake” and that they need to get bills down. Wind Concerns is saying that canceling wind power contracts is necessary for that to happen. Can you explain? How much are the 2016 contracts worth?
Parker Gallant: Interesting they are now admitting a “mistake,” but when George Smitherman was Energy Minister he was provided with a long-term energy plan that had been carefully developed by “experts” within the crown agencies. He chose to cancel the plan and instead, impose one developed in conjunction with outsiders who were NOT experts. Previous Energy Ministers (Dwight Duncan comes to mind for his “smart meter” for every ratepayer) made mistakes, as did those who followed such as Brad Duguid and were roundly criticized by both the media and by ratepayers. The canceling of wind power projects not yet built or even contracted is only “step one” and will slow the climb in our bills. The current Minister, Glenn Thibeault has only suspended Large Renewable Procurement or LRP ll, and needs to cancel it, as well as LRP I and any of those contracts now past their agreed-to start date. There are ways to reduce costs almost immediately.
Jane Wilson: Wind Concerns Ontario prepared a detailed document for the IESO on the Long-Term Energy Plan, suggesting ways they could save $1.7 billion annually. That would have an immediate cost reduction impact.
Q: The Energy Minister says that now, Ontario is a “net exporter” of electricity like that’s a good thing. He claims we’re making money: is that true?
Parker Gallant: Being a “net exporter” of 16.8 terawatts (TWh) in 2015 is simply a demonstration of being a bad planner and manager of the system. If one adds the spilled hydro and curtailed wind to the net exports, the 21.2 TWh could have provided over half of all average Ontario households with power for a full year, yet we sold it 2.36 cents/kWh while we paid 10.14 cents/kWh for its generation. Ontario contracted for far too much intermittent and unreliable wind and solar power creating a domino effect the increased our costs of generation. Paradoxically, if Ontario ratepayers consumed more of the annual excess power (15.5% in 2015) it would help reduce our per kWh cost.
Q: What is WCO’s stance on climate change?
Jane Wilson: Our position is that everyone wants to do the right thing for the environment, whether that is preventing air pollution or using the most efficient forms of power generation — but that isn’t industrial-scale wind. For example, the Ontario Society of Professional Engineers or OSPE says that the proliferation of large-scale wind will actually increase greenhouse gas emissions, therefore not achieving the government’s stated goals. In the OSPE’s most recent report, they say “Wind generation offers less GHG reduction value in Ontario because base-load generation is already carbon-free and wind generation often displaces hydroelectric and nuclear base-load generation.”
Q: Why does the Ontario government continue to force wind turbines on communities that don’t want them?
Jane Wilson: The government is acting on an ideology that is not supported by fact and to do that, it erased communities’ right to local land-use planning with the Green Energy Act. We think that’s wrong, and are supporting the now 116 municipal governments that have demanded a return of that control and also that community support be mandatory for wind power contracts. There is a concern too about communities in the North where there may not be elected municipal governments, where contracts can be awarded for wind power projects that have a significant negative impact on the natural environment, for little or no benefit.
WCO worked with Ontario municipalities on the mandatory support resolution.
Q:Can the government really cancel wind power contracts? Can a new government cancel the subsidy programs?
Jane Wilson: Yes. There are clauses in the contracts under LRP I that are “off-ramps” in the case of cancellation, and which set out the financial steps needed to do that. For example, the contract with EDP for the “Nation Rise” project south of Ottawa in North Stormont, worth $430 million over 20 years, would cost $250,000 plus reimbursement for development costs that must be justified, to a maximum of $600,000. And yes, government can cancel subsidy programs. The LRP II, now “suspended”, should be cancelled outright.
The other opportunity is to cancel wind power projects that do not have a “Notice-to-Proceed”: this is straightforward. WCO has also suggested to the IESO that the government look seriously at all contracts and review them for opportunities to cancel. Even costly negotiated buy-outs will reduce hydro costs significantly, due to the high cost of disposing of surplus power.
Q: What is WCO doing to help people already living with wind turbines, and the noise they produce?
Jane Wilson: We support the public health investigation being done by the Huron County Health Unit, and hope that other municipalities will take similar action. We are also looking at how research can be done to help change the Ontario regulations on noise –which are not based on current science and in fact, are completely inadequate to protect health. We prepared a detailed document on how to revise noise enforcement regulations, another on how the approval process must be changed to protect health, and we submitted a document to the World Health Organization which is preparing global noise regulations for wind turbines. In short, we take every opportunity possible to explain the situation for people living in communities where wind turbines and their noise emissions have been forced, without consent, on the people of Ontario, with the goal of having regulations and processes changed.
Q: What’s ahead in 2017?Jane Wilson: It’s a very different world for wind power now, than in 2009 when the Green Energy Act was passed. People are genuinely questioning the benefit of high-impact, large-scale wind power development, especially when there seem to be few, if any, benefits, and we are seeing the shocking results of the government’s complete mismanagement of the electricity sector such as lost jobs and rising energy poverty. We believe the government will have to take dramatic action if it is serious about getting electricity bills down. The fact that Ontario municipalities are speaking out on this issue and taking action will also have results, we believe. We are hoping for a complete halt to the ongoing damage of the government’s policies, and that there will be help for people already living with the noise and other impacts of industrial-scale wind turbines.
As for Wind Concerns Ontario, we are not stopping our work.
Internet giant Amazon Web Services has opened a cluster of data centres near Montreal due to the ready availability and cost of hydro-electric power in Quebec.
The company, which is notoriously secretive about its data centres, said there are now at least two data centres just outside Montreal to offer web-based services to the “Canada Region.” Canada joins 15 other regions around the globe from which Amazon is running data services on behalf of clients.
Teresa Carlson, vice-president of public sector with Amazon Web Services, said the cost and availability of hydro-electric power is ultimately what made Amazon choose Quebec as its Canadian home.
“We picked the area that we did because of the hydro power,” said Carlson. “We did find them (Quebec) to be very business friendly.”
Carlson said Amazon conducted a thorough review of various options within Canada, including Ontario, that involved looking at a number of factors, including the price of electricity. …
“Poverty is getting worse in Ontario,” says Wind Concerns Ontario president
Wind Concerns Ontario welcomes the acknowledgement by Premier Kathleen Wynne of financial hardship imposed by her government’s energy policies, and has sent six recommendations for action that will provide immediate relief.
“We know that energy poverty in Ontario is real and worsening under this government,” says WCO president Jane Wilson. “Hundreds of thousands of people are having difficulty paying their electricity bills, and many are having to choose between ‘heat and eat.’ Meanwhile, corporate power developers are getting paid huge profits in Ontario – this has to change, now.”
Wind Concerns Ontario sent the Premier a list of recommendations:
Immediately cancel LRP II renewable power program. Currently “suspended,” its target was to acquire 1,000 megawatts (MW) of power, even though the government says we have a “robust” supply of power for the future. The cost of this new capacity would go straight to Ontario’s electricity bills
Cancel the five wind power contracts awarded under LRP I for 299 MW. This action will save ratepayers about $65 million annually and $1.3 billion over 20 years. Cancellation costs will amount to a small fraction of the annual cost, probably on the order of about $2 million, at most. In addition, cancelling approved but not yet built wind power projects, and the new FIT 5.0 program will also save money. Together, these cancellations can save ratepayers from future rate increases of nearly $4 per month.
Cancel “conservation” spending of $400 million annually. This action would have an immediate effect on ratepayers’ bills, reducing them by $5.50 per month or about $70 a year. Ontario’s ratepayers have already reduced their consumption from 157 TWh in 2005 to 137 TWh in 2015, for a significant 12.7% decrease.
Allocate the Ontario Electricity Support Program (OESP) to the Ministry of Community and Social Services. The OESP is essentially a social assistance program and it is questionable as to whether ratepayers should bear the burden of its costs. With an estimated annual cost of $200 million, the effect of this would be an immediate savings of about $4 per month on ratepayers’ bills, and an annual savings of $50. We recognize, however, that the move would impact the budgetary shortfall by a like amount so we recommend the following action.
Levy a tax on wind and solar power generation on a per-megawatt basis starting at $10 per/MWh. This would result in raising sufficient revenues to offset the OESP costs. The effective rate could be held at that level or increased in the event the OESP costs exceed the forecast $200 million per annum. The Auditor General previously reported the award value per MWh of the 20-year contracts to wind and solar power developers exceeded those in other jurisdictions by a considerable margin. The tax would serve as a recognition of those excessive margins. (Note: the wind power contracts also contain cost of living increases of up to 20% over the term of the contracts.)
Immediately reduce the Time of Use (TOU) off-peak rate. We recommend an immediate reduction in the TOU off-peak rate from 8.7 cents/kWh to 7.4 cents/kWh to encourage the shift of power consumption from peak to off-peak time in order to flatten daily demand.
“Poverty is a major factor in population health,” says Wilson, a Registered Nurse. “It is time Ontario takes action to help people now, and not cause further hardship for Ontario families.”
Wind Concerns Ontario is a coalition of community groups, individuals and families concerned about the impact of industrial-scale wind power development on the economy, on the natural environment, and on human health in Ontario.
OTTAWA WIND CONCERNS NOTE: The contract for the “Nation Rise” wind power project in North Stormont, just south-east of Ottawa, will cost Ontario residents $430 million over its 20-year contract, for intermittent wind power we don’t need. Cancelling the power project, slated to be 100 megawatts and over 30 industrial-scale wind turbines, would cost no more than $600,000. Other projects in our area would be the much-contested Amherst Island project which will endanger birds and other wildlife species, and the White Pines project in Prince Edward County, also a danger to migratory birds and other wildlife. Cancelling these projects which are not yet built will save millions.