Those 104,000 MWh generated revenue of $2.4 million based on the average price received per kWh over the weekend (2.3 cents) but cost ratepayers in Ontario in excess of $11 million to produce. The difference of $8.6 million will find its way to the Global Adjustment (GA) pot, driving up electricity prices in Ontario. While last weekend (November 23^rd and 24^th) experience only amounts to about $2.00 each for the 4.5 million ratepayers, if we add that to the $8.00 for the prior two weekends, it becomes $10.00 for each ratepayer—collectively, that amounts to $50 million for power Ontario’s ratepayers never got to use but had to pay for over just six days.

Last weekend, wind turbines produced slightly over 60,000 MWh or 57% of Ontario’s exports; the costs for that production alone (minus the revenue earned) was $6.9 million. If one adds the cost of gas plant back-up of $900,000, payment for constrained wind ($150,000), and steamed off nuclear from Bruce Power ($800,000) it coincidentally comes to slightly more than the $8.6 million that went to the GA pot.

The hourly Ontario energy price (HOEP) held up (2.3 cents per kWh) better for the past weekend than the previous two, or the cost to ratepayers would have been even higher.

The Long Term Energy Plan or LTEP is due to be released Monday, December 2. If it does not attempt to turn down this insane wealth transfer from Ontario’s residential and commercial ratepayers to NY, Michigan and Quebec, then Ontarians should seriously look at exporting our Liberal politicians. I think many of us would even pay those jurisdictions to take them off our hands.

©Parker Gallant

November 27, 2013