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Tag Archives: smart meters

Substantial criticisms of Hydro One missing from Ombudsman report

31 Sunday May 2015

Posted by ottawawindconcerns in Uncategorized

≈ 3 Comments

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Andre Marin, Hydro One, Hydro One bills, Hydro One management, Ombudsman Hydro One investigation, Ontario Ombudsman, Parker Gallant, smart meters

 

Serious criticisms of Hydro One missing from Ombudsman report

May 31, reposted from Wind Concerns Ontario http://www.windconcernsontario.ca

Me, me, me, and, did I mention--me?
Me, me, me, and, did I mention–me?

Fifteen months after it was launched, the report from Andre Marin, Ontario’s Ombudsman, is finally out.

Exactly why it took 15 months to complete is worrisome: there have been literally dozens and dozens of articles on this issue, an Auditor General’s report, numerous letters to the editor, TV and radio exposure, etc., that detailed Hydro One’s billing and smart meter problems since the Ombudsman’s announcement of an investigation.

Hydro One was the fifth most complained about provincial entity for the 2011 and 2012 year, according to the Ombudsman’s own annual reports. Many of the articles and letters go back well before the launch of his investigation.  Most of those earlier complaints were connected to billing issues as a result of “smart meters” installed by Hydro One, but Mr. Marin clearly states in the 119-page report  “we received many complaints about subjects that were not the focus of this investigation – chiefly, electricity pricing and smart meters.”  Were those complaints included in his estimation of the 10,000 plus he claimed they investigated?

Why were “smart meter” related issues simply ignored?  Was it a lack of technical abilities within the Ombudsman’s office, or a case of being overwhelmed by the billing problems? Why wouldn’t the Ombudsman at least note in one of his 66 recommendations that someone with the technical skills should investigate the “smart meter” problems?

Surprisingly the report also says nothing about how the Ontario Energy Board has ignored Hydro One’s problems with the smart meters, nothing about the Energy Ministry’s role or their lack of oversight, and basically nothing critical of Hydro One’s senior management and its apparent failings.  Was Mr. Marin concerned any critique about those subjects might lead to his contract not being renewed?  If that was the case he doesn’t deserve to be our watchdog.

I have reviewed the findings in the report and his 66 recommendations and found many to be repetitive and overlapping.  I also found the report skirted many of the issues that needed examination as the root cause of the billing problems.   In my humble opinion, the Ombudsman’s prejudice against the private sector also shines brightly in the report as does his self-proclamation of his personal skill sets.

©Parker Gallant,

May 30, 2015

Read more Parker Gallant on the Ombudsman report here: Ombudsman’s report-the good, the bad and the ugly

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Economist summary of the A G report on “smart meters”: astounding incompetence

31 Wednesday Dec 2014

Posted by ottawawindconcerns in Renewable energy, Wind power

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Auditor General Ontario, Auditor General Report, Bob Chiarelli, energy issues, Ontario, Ontario consumers, Ontario economy, Ontario electricity bills, Ontario power rates, Robert Lyman, smart meters

Ottawa-based economist Robert Lyman, who specializes in energy issues, has provided us with a summary of the highlights of the recently released Auditor General report, on the energy sector in Ontario. The government’s handling of this portfolio is astounding for its mismanagement, and wasted taxpayer and ratepayer dollars.

Read the summary from Mr Lyman Here: Ontario Auditor General Report on the Smart Metering Initiative

Hydro bills to rise again November 1

17 Friday Oct 2014

Posted by ottawawindconcerns in Renewable energy

≈ 1 Comment

Tags

electricity bills Ontario, hydro bills, hydro bills Ontario, off-peak rates, Ontario Energy Board, Ontario hydro bills, smart meters

The price per kilowatt hour is going up at all times of the day starting November 1.

Off-peak rates have climbed 51% since 2010

From the CBC:

Ontario hydro bills are scheduled to increase as temperatures decrease, the Ontario Energy Board announced Thursday.

The price per kilowatt hour will go up for on-, off- and mid-peak hours of the day starting November 1.

The Board says the changes will translate into a 1.7 per cent increase on a typical bill. That’s about $2 a month for the average household.

The lowest priced periods remain weekdays from 7 p.m. to 7 a.m., as well as all day during weekends and holidays. The off-peak price will be 7.7 cents per kilowatt hour — a 0.2 cent increase from current prices.

Electricity prices in Ontario have now gone up 51 per cent in off-peak usage, 41 per cent in mid-peak usage and 41 per cent in peak usage in the last four years.

MP Cheryl Gallant calls for smart meter investigation

01 Monday Sep 2014

Posted by ottawawindconcerns in Uncategorized

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Cheryl Gallant, Hydro One, smart meters

For Immediate Release
August 29, 2014.

MP Gallant Investigates Hydro One Smart Meters

Ottawa, Ontario… Cheryl Gallant, MP recently met with Industry Canada officials regarding the controversial Ontario Hydro One “smart meter” program. The meeting was a result of an investigation that was requested by the Renfrew-Nipissing-Pembroke MP due to the thousands of complaints she has received about Hydro One. While the regulation of electricity is a provincial responsibility, measuring devices like electricity meters falls under Federal jurisdiction.

“When I started my investigation into Hydro One so-called smart meters after receiving thousands of complaints from electricity customers, the Saskatchewan smart meter fires that prompted calls to remove all installed meters in that Province were not yet in the media,” observed Cheryl Gallant, MP. “While our Federal Minister of Industry was already working with me in my investigation, the observation that other jurisdictions were experiencing problems with the new electricity meters added a sense of urgency to my investigation,” remarked MP Gallant. “The odd fact about the billing problems and smart meters at Hydro One, is that they seemed to be confined only to the Ontario Provincial Crown Corporation. Ottawa River Power Solutions, one of our locally-controlled electricity distribution companies, verified that in 10 years, they received no complaints about their smart meters.”

“Measurement Canada, the Federal Agency at the Department of Industry tasked with the responsibility to regulate metering devices, confirmed for me the problem is not with individual electricity meters when they are received from the manufacturer for certification. Laboratory tests confirm this. That means the problem is with Hydro One. “Whether it’s corruption of data between meters and the billing department, erroneous estimates where connectivity does not exist, gross incompetency or something else on the part of the provincial government, this merits further investigation.”

“Measurement Canada also confirmed to me its interest is seeing full disclosure on an individual’s Hydro One bill. Of particular note is the charge for “line loss.” It is not clear what the “line loss” or “delivery” charge on someone’s bill is actually for. Actual line loss is an easy calculation. Hydro One and the provincial government have made the calculation so convoluted, this needs an independent investigation. This is all about fairness. Not considered a tax, electrical use increases hurt more than a tax hike because at the end of the day you have less money in your pocket for food, rent, heat mortgage payments and other necessities of life,” concluded Cheryl Gallant, MP.
-30-
For more information contact MP Cheryl Gallant at 613-732-4404

Editor’s note: Cheryl Gallant is a Conservative Party of Canada MP

Read the full story 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.

Parker Gallant on Ontario’s “smart grid”: what’s been achieved?

11 Wednesday Sep 2013

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

≈ 1 Comment

Tags

Bob Chiarelli, conservation power Ontario, cost-benefit analysis wind power, electricity rates Ontario, Ontario's smart grid, smart meters, wind power Ontario

Reprinted from Wind Concerns Ontario today:

On November 23, 2010, Ontario’s then Minister of Energy, Brad Duguid, issued a directive via an Order In Council to the Ontario Energy Board (OEB), with instructions on the “smart grid”:

“… it is desirable that the Province and the Ontario Energy Board move forward together with a plan to implement the advanced information exchange systems and equipment that together comprise the Smart Grid (“Smart Grid”), as defined in the amendments to the Electricity Act, 1998 made by the Green Energy and Green Economy Act, 2009…”

   The Duguid directive was a direct result of the Dwight Duncan directive of 2004 to the OEB instructing them to arrange the installation of “smart meters” throughout the province. 

   Co-incidentally (noted by Tom Adams), the Duguid directive is dated the same day as the e-mail exchange between Alicia Johnston (formerly a senior political staffer for Energy Minister Brad Duguid, later promoted to the Premier’s Office) and Ben Chin (a senior Ontario Power Authority executive).  That e-mail exchange contained Ms Johnston’s suggestion to engage Tyler Hamilton, a  contributor to Toronto Star, as an “expert” to counter the  Adams and Gallant duo who “are killing me” ; Chin agreed. Shortly after, Hamilton received a contract from the Independent Electricity System Operator (IESO) for a report on the smart grid.

    The fact is, the Independent Electricity System Operator or IESO had already started work on the “smart grid” as noted in the Financial Post article on July 6, 2010 — costs of development were estimated at $1.6 billion.  IESO had awarded a contract to IBM according to a January 15, 2007 press release; the purpose of the contract was defined as:  “the development and operation of Ontario’s Meter Data Management/Repository (MDM/R).”

A culture of conservation

The MDM/R is explained as: “a core part of Ontario’s Smart Metering Initiative to drive a culture of conservation, enabling the billing of Time-of-Use rates and encouraging consumers to shift more of their energy use to off-peak periods.” The initiative would apply to 4.7 million customers of local distribution companies, involving more than “100 million transactions every day.”

   More than six years later, that “Repository” has yet to generate reports on either shifting consumer habits or “imbedded generation.” (Embedded or distributed generation is usually a small scale production of power connected within the distribution network and not having direct access to the transmission network. These generators are typically located close to the electricity consumer.)

   But that hasn’t stopped IESO from awarding IBM yet another five-year contract for $68.5 million for the same “repository” with an option to extend the contract seven to ten years. With an estimated 100 million data feeds daily from “smart meters” one would expect that data to be accessible to determine what production comes from embedded generators such as rooftop or ground-mounted solar, to reinforce the “culture of conservation” and identify shifts in consumer habits. 

  Is this a missed opportunity for a cost/benefit analysis?

  On July 16 of this year, Energy Minister  Bob Chiarelli arranged a press release about conservation and claimed that “Ontario has saved billions of dollars through conservation, and we have a clear opportunity to do more. By investing in conservation before new generation, where cost-effective, we can save ratepayers money and give consumers new technology to track and control energy use.”

  What caught my eye in that press release were the endorsements: they were not from the usual climate change chorus such as Environmental Defence, CAPE,or the Ontario Clean Air Alliance. The last one was  “Sheldon Levy, President, Ryerson University.”  What would possess the President of Ryerson University to jump on this band wagon? 

  A month later, we have the answer:  on August 26, 2013  a news release announced that Ryerson University’s Centre for Urban Energy (CUE) “will build an innovative smart grid laboratory” with support from the province.  The press release doesn’t say how much the province is coughing up but does say “Building a smarter grid is an important part of the Ontario government’s plan to modernize the electricity system in the province and provide clean, reliable and affordable power to consumers.”  One can assume President levy’s endorsement of the July conservation announcement was sought by the Ministry as a condition of support for  the smart grid laboratory.  CUE was launched in 2010 with $7 million in grants from taxpayer-owned Hydro One, Toronto Hydro and the Ontario Power Authority.

  A  Globe and Mail article dated October 17, 2012, called “The tricky business of funding a university” carried the following comments about Ryerson’s CUE:

“Some schools have tiptoed the line successfully. Toronto’s Ryerson University launched its Centre for Urban Energy (CUE) two years ago using $7-million in contributions from three partners – Hydro One, Toronto Hydro and the Ontario Power Authority – and is now hoping to enlist new collaborators such as Siemens and General Electric.”

   It appears that President Levy knows exactly how to “tiptoe the line.” CUE’s intentions to collaborate with GE and Siemens are also interesting.  An announcement by Minister Chiarelli on July 2, 2013  indicates that the $50-million “Smart Grid” fund has already provided grants to GE, Siemens and IBM.

   Just asking: did the grants to GE and Siemens carry a proviso that they collaborate with CUE and did they both seek those grants?  It is not clear why IBM would need a grant as they have been awarded two long-term, multi-million dollar contracts from IESO.  The press release indicates the IBM grant was to create a centre “that will use and analyze smart meter data” which is what they are already supposed to be doing for IESO under the terms of the contract(s)!

Government grants to huge corporations

   So, we hand out grants to multi-billion dollar corporations such as GE, Siemens and IBM and  award them government contracts.  The first two entities are entrenched in the renewable energy business (turbines and blade manufacturing) so, to an extent they are dependent on commitments to more wind power by the Ministry of Energy. And, IBM won two contracts related to the data analysis of 4.7 million smart meters installed throughout the province.

  (I checked the Ontario Lobbyist Registry and could only find GE with registered lobbyists.)

   As noted above, the original estimate to create the smart grid was $1.6 billion, to be paid by Ontario’s ratepayers.  IESO stick-handled the first smart grid rate application through the OEB and ratepayers have paid for it since May 1, 2013.  It is included, but hidden, with the delivery costs charged by your local distribution company (LDC).  It is a charge of .79 cents per month and referred to as a “Smart Metering Entity charge.”  Your LDC will collect this for the next five and a half years.  Doing the math on this rate hike indicates that it will cover $245 million of that $1.6 billion —so be prepared for further “hidden” increases as spending is ramped up. 

   As noted, the MDM/R definition it is really all about conservation and enabling those 72 LDCs to bill on a Time-of-Use basis.  Those “smart meters” and “smart grid” will cost ratepayers $4 billion and will not produce one kilowatt of new power.  I suspect that Environmental Commissioner Gord Miller doesn’t consider the above costs or the costs of the smart meters, when he presents his annual report to the Minister of the Environment.  The Commissioner’s cost/benefit study uses only the annual spending of the Ontario Power Authority (media advertising, free fridge pickup, coupons to purchase CFL bulbs, etc.) which paints the cost of “conservation” as only three cents per kilowatt hour. 

   In addition,  a posting on Scott Luft’s website indicates that time-of use pricing has shifted consumers’ energy use to what used to be “off-peak” periods (noted as an objective of the MDT/R). As a result, those periods have now become “peak” demand periods for ordinary consumers, beginning at 7 PM, rather than mid-day.  Ontario’s ratepayers are now trained to eat our supper and wash our clothes later, not because we want to, but because electricity has become so costly we only use it during the off-peak hours!

   Perhaps the Dalton McGuinty government should have simply doubled the price of electricity when they came to power in 2003 and we would have immediately started to conserve.   Think of the money we could have saved, the countryside we would not have despoiled with industrial wind turbines, the harm to health not caused, the birds and bats not killed, and the property values that would not have fallen!

   Too bad politicians don’t grasp the simple law of supply and demand.

 

Parker Gallant.

September 11, 2013

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

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