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Tag Archives: Ontario Liberal government

Energy poverty grows in Eastern Ontario

12 Sunday Feb 2017

Posted by ottawawindconcerns in Renewable energy

≈ 1 Comment

Tags

Eastern Ontario, electricity bills Ontario, energy poverty, Glenn Thibeault, hydro bills Ontario, Ontario Liberal government, ROMA

Ontario’s electricity bills are the fastest rising in North America, with rates increasing year over year. While the government talks about “relief,” it is not doing anything substantial to help.

Here is the news from Eastern Ontario, as reported in the Brockville Recorder and Times.

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)

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.

Read the full article here.

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Citizens, municipalities say thumbs down on IESO wind power contract process

04 Saturday Jun 2016

Posted by ottawawindconcerns in Ottawa, Renewable energy, Wind power

≈ Leave a comment

Tags

Bob Chiarelli, community opposition wind farms, IESO, Large Renewable Procurement, London Free Press, Ontario Liberal government, renewable energy, wind farm contracts, wind power bids, wind power contracts, wind power Ontario, wind turbines, windmills, Wynne government

‘Resounding condemnation’ of wind power bid process: WCO on comments to IESO

The IESO asked for comments on its Large Renewable Procurement process. Looks like nobody is happy, least of all Ontario citizens and the municipalities that would be forced to have the power projects.

Communities have valid reasons for objecting to huge power projects but government is not listening [Photo: Prince Edward County]
Communities have valid reasons for objecting to huge power projects but government is not listening [Photo: Prince Edward County]

London Free Press, June 3, 2016John Miner

The agency setting the ground rules for the next multi-billion-dollar round of wind farm development in Ontario says it can only go so far to meet demands for changes in its program to acquire more electricity.

Ontario’s Independent Electricity System Operator (IESO), which picked the winners in the last round, asked residents, wind farm developers, municipalities and First Nations how the controversial program could be improved.

A persistent theme in the 120 pages of responses was a call for municipalities to be given a veto over developments, a power stripped away by the Liberal government — to the anger of many municipalities — when it launched its green energy program.

“Municipal support must be a mandatory requirement. There must be greater consideration given to the impact of the power projects on the community, and on the people who must live near them,” wrote one respondent.

But Adam Butterfield, IESO’s manager of renewable energy procurement, said such a decision would have to be made by the provincial government.

“The feedback we get will be communicated up to the Ministry of Energy for them to consider any related policy changes. We provide our advice, as we always do, on these aspects. But at the end of the day there are some policy ones, such as the veto aspect, that are in the government’s purview,” he said.

In Southwestern Ontario, home to the largest wind farms in the province and the most wind turbines, the Liberal government’s decision to take away local control over where the highrise-sized turbines can be built left many centres joining a movement of so-called “unwilling host” communities for energy projects.

Butterfield said he doesn’t know how the government will respond to the latest feedback.

“To date they have been pretty firm that renewable energy is a provincial issue and so they haven’t been amenable to considering a (local) veto. We will provide the feedback up and see where things go over the course of the summer.”

Jane Wilson, president of Wind Concerns Ontario, a provincial coalition opposed to wind farms, said the survey responses show the process doesn’t respect Ontarians and their wishes for how their communities develop.

“The point is made repeatedly that the process for locating renewable power projects differs from any other sort of development — that there is little openness or transparency, and that municipalities ought to have real ‘say’ in where these power projects go,” Wilson wrote in an email.

“The comments are a resounding condemnation of the procurement process,” she added.

The IESO has been instructed by the government to procure another 600 megawatts of wind energy, with the contracts awarded by 2018.

The generating capacity is being added at a time when the IESO’s own forecasts project Ontario will remain in a surplus power position for at least a decade.

A report last year by Ontario’s auditor general concluded Ontarians paid $37  billion extra for power over the last eight years because of the government’s decisions to ignore its own planning process for new power generation projects.

Along with suggestions for a municipal veto, other respondents to the IESO survey called for more openness by companies about their plans and an end to non-disclosure agreements with property owners.

“Proponents intentionally misled, failed to follow the process (meeting and information distribution), and used other methods to ensure the community was misinformed and had little time to respond,” wrote one. …

Read the full news story here.

___________________________________

Ottawa Wind Concerns Editor’s NOTE: As of today, 73 Ontario municipalities (the majority of communities that would be vulnerable to wind power projects) have passed a resolution stating that municipal support MUST be a mandatory requirement in future wind power bids. That list includes Ottawa.

Want to do something?

Write to the IESO: LRP@IESO.ca and tell them you agree, municipal support MUST be a mandatory requirement. You deserve a say in where power projects go.

Write to the Energy Ministry. By email: http://www.energy.gov.on.ca/en/contact-us/

By post: Ministry of Energy
900 Bay Street, 4th Floor
Hearst Block
Toronto ON M7A 2E1
Canada

And thank your Ottawa councillor for voting in favour of the mandatory support motion.

NoMeansNo_FB

Wynne government thumbs nose at Ontario’s small communities

31 Tuesday May 2016

Posted by ottawawindconcerns in Ottawa, Renewable energy, Wind power

≈ Leave a comment

Tags

Bob Chiarelli, garbage dumps Ontario, green energy, IESO, Kathleen Wynne, Large Renewable Power projects, Not A Willing Host community opposition wind farms, Ontario Liberal government, wind farms Ontario, wind power contracts

While Manitoba is bending over backwards to foster cooperation and benefit for both rural and urban communities, the Ontario government is doing the opposite, says PostMedia writer Jim Merriam. In fact, the Wynne government has made it very clear what it thinks of rural/small-town Ontario –you’re there to supply our power and bury our garbage.

Orillia Packet, May 31, 2016

You tiny little annoying people...
You tiny little annoying people…

Rural-urban divide a wedge issue in Ontario

By Jim Merriam

Although Manitoba and Ontario are neighbours, their differences far outnumber their similarities.

One of these differences is the way their leaders treat the rural-urban divide.

Brian Pallister, recently elected Conservative premier of Manitoba, has coined two new words: “rurban” and “urbal,” according to the Western Producer.

The Manitoba premier is trying to create a new reality in Manitoba, wherein his urban members of the legislature care about rural areas and vice versa. He is trying to convince legislators that, “You do not think about yourself. You think about your team.”

The new boss went on to say “there are rural situations that many people in the city don’t fully appreciate.”

In contrast, Ontario Premier Kathleen Wynne has been all over the map on the same issue.

As recently as two years ago she denied the divide even existed. Then last November, she told a rural audience “the issue of bridging the rural-urban gap” has been on her mind since she was first elected in 2003.

The reasons for the divide are various, but some stand out.

No. 1 is the way this government has shoved industrial wind turbines down the throats of rural dwellers. The province is still approving new developments over the strongest objections of municipal leaders in a wide area of the province.

During the last provincial election, the Liberals told rural Ontarians their voices would be heard on wind farm developments.

Yet, in April, just weeks after awarding controversial contracts for five wind farms, Ontario said it’s opening bidding for double that amount of wind energy.

Recent approvals included a development in Dutton-Dunwich in southwestern Ontario where 84 per cent of residents who voted, didn’t want such developments.

In November 2013, Energy Minister Bob Chiarelli testified before a legislature committee that municipalities wouldn’t be given a veto over projects but it would be “very rare indeed” for any to be approved without local backing.

Garbage is another source of friction …

Read the full article here.

NOTE: The City of Ottawa does not presently have any wind power projects under contract, but the IESO is set to begin its new Large Renewable Procurement process later this summer. Eastern Ontario has a “green light” in the wind power expansion process. Earlier this month, Ottawa City Council unanimously passed a resolution asking that municipal support of power projects be a mandatory requirement for new bids.

ottawawindconcerns@gmail.com

Ontario’s wind power plan failed rural communities: U of O research paper

04 Thursday Feb 2016

Posted by ottawawindconcerns in Ottawa, Renewable energy, Wind power

≈ Leave a comment

Tags

community opposition wind farms, Green Energy Act, McGuinty government, Ontario Liberal government, rural Ontario, Stewart Fast, University of Ottawa, wind farms, wind power, wind turbines

“Top-down” policy ignored community concerns, health impacts, research team says

3-MW turbine south of Ottawa at Brinston: Ontario. Communities had no choice. [Photo by Ray Pilon, Ottawa]

3-MW turbine south of Ottawa at Brinston: Ontario. Communities had no choice. [Photo by Ray Pilon, Ottawa]

Ottawa Citizen February 3, 2016

By Tom Spears

Ontario brought in wind energy with a “top-down” style that brushed off the worries of communities where the massive turbines now stand, says a University of Ottawa study.

The 2009 Green Energy Act gave little thought to the transformation that wind farms bring to rural communities — problems that even revisions to the act “will only partially address,” writes a group headed by Stewart Fast.

Fast personally favours wind energy, “but only if it’s done right.”

In Ontario, he says, much of it wasn’t.

Read the full story here.

Trudeau government to spend $6B on renewable energy: Financial Post

21 Wednesday Oct 2015

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 3 Comments

Tags

Justin Trudeau, Liberal government, Ontario, Ontario economy, Ontario Liberal government, renewables, wind power, Wynne government

cropped-ottawa_silhouette_courtesy_city_of_ottawa.jpg

It is worth a reminder that the Ontario Liberal government, despite recommendations from TWO Auditors General, NEVER did a cost-benefit analysis or impact of its renewable power program. Are we going to see the lessons learned in Ontario played out on a national scale?

Financial Post, October 20, 2015

Likely impact in five key areas

Renewable energy

Trudeau has a particularly ambitious plan for renewable energy projects, with a promise to commit nearly $6 billion in green spending over a four-year period and ramping that up to nearly $20 billion over 10 years. The Liberals will also incorporate climate impact analysis into federal contracting, which could get further money flowing into the green space.

All of that will be welcome news for Canada’s renewable energy companies, especially as the previous government focused investment on the oil and gas sector.

“It is fair to assume that the sector will be a big net winner under this government, as they have carved out specific spending in their infrastructure outlays for green energy,” said BMO’s Porter. “Beyond direct spending on the sector, it’s also safe to assume that the government will support the sector heavily through direct measures.”

…………

For more information on who’s advising our Prime Minister designate, read this account on Gerald Butts, formerly a staffer in the office of Dalton McGuinty, now Trudeau’s top adviser:

Butts was principal secretary to Dalton McGuinty when he assumed the premier’s office. Former secretary of cabinet Tony Dean calls Butts the “smartest senior political and policy adviser that I worked with in almost 20 years in government.”

As Butts helped implement a green energy strategy that would phase out coal and sell a tax his leader had promised never to implement, Telford set out with Kennedy to implement the premier’s ambitious agenda in education.

Wind farms: another $20 million gone in a weekend

28 Tuesday Oct 2014

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 1 Comment

Tags

export power, Ontario, Ontario electricity demand, Ontario government, Ontario Liberal government, Ontario Power Authority, Ontario power conservation, Ontario Power Generation, Parker Gallant, surplus power, Tom Adams, wind farm, wind power

Ontario: wind farms contribute to $20-million power sell-off

Another $20-million autumn weekend with Ontario power sold off cheap to neighbouring states and province

Another October weekend has come and gone along—and so has at least another $20 million of Ontario ratepayer dollars, due to selling off surplus Ontario power cheap.

This past weekend of October 24-26 saw Ontario sell off another 189,000 megawatt hours (MWh)  of electricity to our neighbours in Michigan, New York and Quebec.   Those MWh went for a song generating, $4.31 each and earning about $820K. The flip side is, ratepayers paid over $110 per MWh for that power generation.  We lost $106 for each MWh (10.6 cents per kilowatt hour); that means the subsidized cost of those megawatt hours  was over $20 million, or a one-time hit of about $4.50 for each of Ontario’s average electricity ratepayer.  The trouble of course is that it is not a one-time hit, as this situation occurs frequently during spring and fall when demand for power is low.

Included in that $20 million we paid to export our surplus is the cost for the spasmodic production of electricity from thousands of industrial wind turbines throughout the province and, presumably, some solar production.   Wind turbines produced over 52,000 MWh Octover 24-26, and wind power producers were paid for not producing another 17,000 MWh.   That 69,000 MWh cost Ontario’s ratepayers half of the $20 million. It doesn’t  include what Ontario Power Generation spilled in hydro, what gas generators were paid to idle, or what Bruce Nuclear was paid to steam off nuclear power.

What this past weekend and others before it should be telling the Ontario Liberal government and the Minister of Energy Bob Chiarelli is that Ontario’s ratepayers are consuming less of this expensive commodity.  Premier Wynne’s  “Conservation First” initiative, as Tom Adams notes in a recent post titled “Crock of Conservation,” has driven demand down but the energy ministry keeps adding more inefficient renewables to Ontario’s grid.

During the past weekend, Ontario exported 20% of its average electricity demand.   If each Ministry of the Ontario government wasted 20% of their budget, the main stream media might pay attention but it seems that the Minister of Energy is allowed to waste ratepayer dollars without any serious oversight because the money is simply extracted, without effect on the Ontario deficit.

We can only hope for the day when it is recognized that ratepayers are also taxpayers, and that their money is being wasted with regularity due to Ontario’s energy policy.

©Parker Gallant,

October 27, 2014

Re-posted from Windconcernsontario.ca

Ontario’s massive debt: what voters didn’t want to hear

02 Wednesday Jul 2014

Posted by ottawawindconcerns in Uncategorized

≈ 2 Comments

Tags

Kathleen Wynne, Ontario, Ontario bond rating, Ontario debt, Ontario economy, Ontario election 2014, Ontario Financing Authority, Ontario government spending, Ontario Liberal government, provincial debt, Robert Lyman

Here from Ottawa economist Robert Lyman, a review of Ontario’s debt situation: it isn’t pretty.

ONTARIO’S DEBT – THE STORY ONTARIO VOTERS REFUSED TO BELIEVE 

Several pundits have commented on the reasons for the major victory by the Liberal Party in the Ontario provincial elections held on June 12. Many have judged that voters were simply unwilling to believe the Progressive Conservative message that fiscal responsibility required reductions in spending, including where necessary reductions in the number of public service positions and programs. Voters said that the debt was not a problem that they wanted to worry about.

Even after the event, it is may be a good idea to examine exactly what the facts are with respect to the financial situation of the provincial government and what this may mean to the people who live in Ontario in future.

  • According to the Ontario Financing Authority, the consolidated provincial debt as of June 14, 2014 is $295.8 billion.
  • The debt has grown significantly over the past generation. In 1990, Ontario’s debt was $38.4 billion. It grew to $115 billion by 1998, and has almost doubled again since then.
  • Ontario has only been able to sustain this increase in debt because of interest rates that are at all-time historic lows. Even so, in 2013-2014, annual debt service costs to the provincial treasury were about $10.6 billion, the fourth largest expenditure item after health, education and social services.
  • The 2014 budget that was defeated projected that debt service costs would rise to $12 billion by 2015-16 and $13.3 billion by 2016-17. This is by far the fastest growing item in the provincial budget, growing twice as fast as the health budget.
  • The Liberals are committed to increasing program spending for at least the next four years. This year the $3 billion increase in program spending will increase the annual deficit to $12.5 billion from $11.3 billion last year. The deficit will be much higher if the Liberals’ projection of a 4 % annual economic growth rate turns out to be too optimistic.
  • There are very few reasons to believe the optimistic growth forecasts. Ontario’s productivity growth lags behind that of the United States, as does business investment. The province’s cost competitiveness has eroded, due to higher taxes and fees and much higher energy costs.
  • In the short term, the debt service cost could be increased further if the various investors’ services downgrade the province’s credit rating. Ontario has $250 billion worth of bonds rated by Moody’s Investor Services. The province’s ability to pay back those bonds, known as the debt-to-revenue ratio, is 237.7 %, the worst rating among all Canadian provinces.

Read the full paper here: ONTARIO’S DEBT

Email us at Ottawawindconcerns@gmail.com

SW Liberal ridings in trouble

21 Monday Apr 2014

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 2 Comments

Tags

Chatham-Kent, Conservatives, job losses Ontario, Kathleen Wynne, Liberal government, Liberals, Ontario election 2014, Ontario Liberal government, rising electricity bills Ontario, wind farms, wind farms Ontario, wind power Ontario, wind turbines, Windsor Essex

Problem-plagued LIberals have lost support in 10 ridings in SW Ontario

April 20, 2014

Deborah Van Brenk

If the minority Liberal government can’t pass its budget next month, Ontario will be plunged into a widely expected spring election. Deb Van Brenk tested the early voter mood in the 10-riding London region, driving its Hwy. 401 backbone. Once almost solidly Liberal, the region now has only one Grit left standing. High power bills, the gas plants scandal, wind turbines — voters are chafing at many issues.

HOW THE REGION HAS VOTED

2011 (Liberal minority government):

Conservatives: 7

Liberals: 2 (MPP Chris Bentley later resigned in 2013)

NDP: 1 (gained Bentley’s London West seat in 2013 byelection)

2007 (Liberal majority)

Conservatives: 2

Liberals: 8

2003 (Liberal majority)

Conservatives: 1

Liberals: 9

Glen Ure says he doesn’t want wind turbines on his property, because of potential difficulties selling his farm near Chatham, not because he’s worried about any health issues as his farm is surrounded by the large structures. Mike Hensen/The London Free Press/QMI Agency

Where: Hwy 401 at Kent Bridge Rd. (Chatham-Kent-Essex riding)

Who: Farmer Glen Ure

From just this overpass, between the West Lorne and Chatham exits, 76 wind turbines are visible in the near and far horizon.

Some sprout just beyond the borders of Glen Ure’s farm, where he’s lived all his life and where his parents farmed before him.

Elsewhere in the region, others battle turbines out of health concerns but Ure rejected offers to be a wind landlord because he wasn’t satisfied with the wind companies’ answers to his many questions. Governments and energy companies control enough of his life and he’s not about to let them control his land, too.

Anyone looking for his vote will face a barrage of questions:

— Why have his power bills soared to $6,600 a year, even as he uses less electricity?

— Why spend more than $1 billion, as the Liberal government did, to relocate two gas plants because of city people’s concerns while ignoring rural issues?

— Why have taxes gone up without measurable benefit to him and his neighbours?

His biggest question? Why, in his 70 years of farming and then trucking and then farming and retirement, have governments promised the world but delivered less than dirt?

“An old farmer told me, when I was 10 years old, ‘politics is like pig farming. You get one person in, fatten him up and kick him out, get another one in, fatten them up and kick them out.’ You vote people in and think they’re going to do all right (but they don’t follow through).”

…

Read the full story and comments here.

Ottawa economist on the Fraser Institute report: Ontario in bad shape

18 Tuesday Mar 2014

Posted by ottawawindconcerns in Ottawa, Renewable energy, Wind power

≈ 2 Comments

Tags

Charles Sousa, cost benefit wind power, finances Ontario, Fraser Institute, health care Ontario, Kathleen Wynne, Ontario, Ontario government, Ontario Liberal government, public debt Ontario, renewable energy Ontario, Robert Lyman

HIGHLIGHTS OF THE FRASER INSTITUTE REPORT

Comparing the Debt Burdens of Ontario and California

On March 8, 2014, the Vancouver-based Fraser Institute published a research study comparing the debt burdens of the state of California and the province of Ontario. Within the United States, many people consider California to represent a prime example of irresponsible government spending coupled with poor cash management. However, the Fraser Institute report uses a number of measures to compare Ontario’s situation to that of California. In almost all cases, Ontario is much worse.

Here are the highlights of the report:

  • California’s current debt in the form of government-issued bonds is US $144.8 billion, while Ontario carries CDN $267.5 billion, almost double the amount of California.
  • This figure actually understates the disparity between the two regions, as California has a much larger economy. The gross debt in the form of bonds is 7.6% of California’s economy, while it is a “whopping” 40.9% of Ontario’s economy, more than five times as large as California.
  • Per capita, each Ontarian’s share of provincial government debt is CDN $20,166 (i.e. $80,664 for a family of four), compared to US$ 3,844 in state government debt for each resident of California.
  • Servicing this debt through interest payments is more costly in Ontario. 9.2% of budget revenues in Ontario are devoted to interest payments, compared to 2.8% in California.
  • Ontario’s expenditures as a share of the economy grew from 15.5% in 2001-2002 to 19% in 2011-2012.
  • Over this period, total government spending in Ontario has been steadily increasing from one year to the next. Thus, unlike California, Ontario has not managed to stabilize the growth of the debt in terms of GDP.
  • Ontario’s net debt for 2012-2013 is the second highest as a percentage of GDP of any Canadian province, trailing only Quebec. However, Quebec’s annual budget deficit was only half as large – 0.7 % compared to Ontario’s 1.4 %.
  • Ontario’s budget analysts project that from 2012-2013 to 2015-2016 net interest payments will represent the fastest growing expense for the provincial government, growing at 5.5 % annually – more than twice the projected rate of health care expenditures.

Robert Lyman

Ottawa, March 18, 2014

Editor: It’s worth noting that Energy Minister Bob Chiarelli admits Ontario is spending $1B a year on power generated from wind energy; he also admits we don’t need it. Sound financial planning!

The Fraser Institute report is available here.

Electricity bills going up again!

17 Thursday Oct 2013

Posted by ottawawindconcerns in Uncategorized

≈ 1 Comment

Tags

electricity costs Ontario, Ontario Energy Board, Ontario Liberal government, smart meters

The Ontario Energy Board has announced another rate hike, effective November 1st. Here from energy economist Robert Lyman, is a view of what is going on (madness!).

In 2002, the residential electricity rate in Ontario was 4.3 cents per kWh. There was only one tier that applied at all times and levels of residential use. This is the rate for the power alone, and does not include the charges for transmission, distribution, regulatory charges, debt retirement and taxes.

In 2004, the two-tier system was introduced. The lower-tier rate was 4.7 cents per kWh and the upper-tier rate was 5.8 cents per kWh.

By 2011, the lower-tier rate had increased to 6.8 cents per kWh and the upper-tier rate had increased to 7.9 cents per kWh.

In 2011 and 2012, Ontario introduced time-of-use (TOU) rates based upon the use of “smart” meters. The rates were set at 6.3 cents per kWh for the off-peak and 11.8 cents per kWh for the peak periods.

Today (October 17, 2013), the Ontario Energy Board authorized an off-peak rate increase to 7.2 cents and a peak period rate increase to 12.9 cents, effective November 1, 2013.

Since 2002, therefore, off-peak rates have increased by 67%, and peak period rates have increased by 200%. Transmission and distribution costs have increased as well, of course, but not as much in percentage terms. The addition of the HST has added about $1.2 billion to ratepayers’ bills every year.

There are many conflicting projections as to where rates will go in future. The province projected in 2010 that rates would rise by about 50% by 2015. Parker Gallant, the well-known critic of provincial electricity policies, has estimated that costs could rise by $7.3 billion per year by 2016, or almost 100%.

Incidentally, Ontario consumes about the same amount of electrical energy today as it did in 2004.

This is the Liberal legacy.

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