Bob Chiarelli’s hydro bill ‘double whammy’

Might be cheaper this way...
Might be cheaper this way…

Ontario’s energy minister blames hydro bill increases on the weather

CTV on March 12, 2015 reported “Ontario’s Energy Minister Bob Chiarelli says residents shouldbe prepared for higher-than-normal electricity bills after February’s deep freeze.”  Minister Chiarelli was reported as stating:  “We had a really bad winter last year, and this year is equally as bad”.

The truth? Ontario’s consumption of electricity in January and February of 2015 was less than power use in the same two months of 2014.  The decline was only 3 gigawatts—from 25.7 terawatts (TWh) to 25.4 TWh—but it was down, not up!

So why should residents “be prepared for higher-than-normal” electricity bills?

It might actually have something to do with how much surplus power Ontario exported in 2015 versus 2014.  In 2014 we exported 2.7 TWh in January and February; in the first two months of the current year, it was 4.4 TWh. That’s an increase of 71%.

I think Ontario ratepayers would have been OK with that if, and it’s a big if, we were selling our exports for a profit.

But, the sale price in 2014 averaged $73.14 million/TWh, and in 2015 that fell to $51.2 million/TWh. We sold more for less!

Almost $300 million in losses already in 2015

In 2014 Ontario ratepayers picked up losses on those export sales of $63.8 million, and in 2015 Ontario electricity customers, so far, have absorbed $294.8 million in export sales losses.  If we keep that pace it will cost Ontario ratepayers $1.8 billion to support export sales for the current year.  That is $400.00 for each and every power customer for power they don’t need, or use!

It’s strange that Mr. Chiarelli thinks “it’s the weather” rather than  inane policies of this provincial government, which since it’s been in power since 2003, has taken every possible action to interfere with the electricity sector.

He also said, “We’re particularly concerned about families, low-income families and the pressures that puts on them…And it’s a double-whammy if they have electric heat.”

Wind power rates above normal

If the government is truly “concerned about families” why have they contracted with wind and solar generators to pay rates wildly above comparable utility rates, and contracted for excess power we now export at a huge cost, and back them up with gas plants?  Now that‘s a “double-whammy”!

The real reason Ontario will see much higher bills in the coming months is because of the Ontario government, not the weather!

©Parker Gallant                                                                                                                                                    March 19, 2015

Note the views expressed here are those of the author and do not necessarily represent Wind Concerns Ontario policy.

 

Comments

Sommer
Reply

Parker, your brilliance in analyzing this data is so much appreciated! I hope this is published in as many places as possible so that ratepayers in Ontario will understand what’s happening.
Chiarelli would probably say it is all so “complex” and then try to justify industrial wind with IPCC alarmist predictions that haven’t occurred.
We need people to understand this and to call for a moratorium. Enough is enough!

Brad Maynard
Reply

Wish I could say I enjoy reading your articles, but in reality it raises my blood pressure. Keep up the good work.

Peter Black CPA CA energy consultant
Reply

What Ontario ratepayers are watching unfold is the continuation of the largest financial disaster in Ontario’s history. No numbers of scandals come even close to the billions that have been wasted going all the way back to Maurice Strong and the old Ontario Hydro. Unfortunately I don’t think Parker’s reporting goes back that far which would allow us to calculate the real cost. Truly unfortunate! What we won’t know and probably will never know is the real cost of disposing of that “clean inexpensive and reliable” nuclear power plant waste. This portfolio has been a sickening bad joke for decades.

Sommer
Reply

Peter, your thoughts are much appreciated…especially considering your expertise.

Greg Latiak
Reply

One might calculate a loss per turbine and perhaps an incremental cost as well. So when a new project is announced one could reply — yes, increasing our bills by $$$ and the debt by $$$$$$$. Instead of the meaningless ‘produces electricity for xxx homes (in the US…)’. Wind power, blowing the economic life out of Ontario…

Sommer
Reply

We who have the foresight to save Ontario from this devastating future have to work hard together to stop these wind companies NOW.

Barbara
Reply

Bloomberg, March 16, 2015

‘EU Slipping on Economic Competitiveness, Employers Say’

“Renewable energy, ‘we have much higher political costs in Europe,’ Beyrer said citing renewable-energy policies that cause market distortions and environmental efforts that are out of sync with global standards. If the rest of the world doesn’t sign on to the EU’s ambitions for reducing emissions targets, he said it may be time for Europe to ‘discuss our level of ambition’ to avoid economic damage.”

http://www.bloomberg.com/news/articles/2015-03-16/eu-slipping-on-economic-competitiveness-employers-say

elaine de vries
Reply

I realy hope you can get them ,to drop hydro we ,keep furnace low at 16 ,so hydro is not so high ,always more for delivery then use .Very unfair ,please give it your best. I am a widow of 66 years with a 34 year old mentally challenge son, so don’t have a lot of money ,she over did it this time. And increase for medication from 100.00 a year to 175.00 realy, How much more can she take thank Elaine

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