A windy Christmas Eve meant more millions in cost to Ontario electricity ratepayers
The day before Christmas
T’was the day before Christmas when all through Ontario
the wind was ablowing without great demand
The turbines were spinning and generating power
and some were found to be curtailing in hope
Chiarelli would still pay them and not be considered a dope
The ratepayers were all snuggled in bed
and the Christmas lights were out because of the dread
that would surely come with the hydro bill
and make everything a whole lot worse than a little chill
The children were tucked in bed in winter gear
because their parents were so full of fear
the heat from the furnace would cause the meter to spin
driving up the bill and cause them to send more money to Wynne
The hydro was spilling, the nuclear steamed off,
the gas plants weren’t moving for fear of the racket
that might come to discredit Dalton and others caught sacking
e-mails and records meant to show their defects
and the way they harmed ratepayers and created negative effects
Excuse the poetry but it does highlight the mess we found ourselves in on December 24, 2015. To wit:
Ontario’s demand for electricity on December 24th was low based on IESO’s “Daily Market Summary” reaching only 315,336 MWh and “Total Demand” was 385,704 MWh. The hourly Ontario Energy Price or HOEP market, priced it in a negative way valuing it at -$543,843. What that means is the 72,336 MWh we exported cost Ontario’s ratepayers an extra $102,000 based on the weighted average HOEP price per MWh of -$1.41. The average cost of production of those exports based on the IESO November average price of $129.53 (net of the DRC) means the 72,336 MWh exported rang up a cost of $9.4 million to be borne by Ontario ratepayers.
That’s not all the costs though! IESO instructed Bruce Nuclear to steam off about 35,000 MWh at an estimated cost of $60.00/MWh or $2.1 million and curtailed 23,500 MWh of wind generation at a cost of around $120.00/MWh adding a further $2.8 million to the day’s costs for ratepayers.
The cost of the exports (negative HOEP of $100 thousand) plus production costs of $9.4 million, steamed off nuclear of $2.1 million and curtailed wind of $2.8 million means just one day cost Ontario’s beleaguered ratepayers $14.4 million without factoring in HST costs.
Premier Kathleen Wynne, her predecessor, Dalton McGuinty, and her Minister of Energy Bob Chiarelli are responsible for delivering those lumps of coal we found in our stockings Christmas morning.
Ho, ho, ho!
(C) Parker Gallant
December 26, 2015
The opinions expressed are those of the author and do not represent Wind Concerns Ontario policy.