Ontario’s wind power industry on the defensive

October 8, 2018

Big Wind lobby group president Robert Hornung: claims don’t stand up

With wind power developers trying to push into Alberta and Saskatchewan, industry lobbyist CanWEA is trying its best to counteract what’s going on in Ontario where an attack of reality has changed boomtimes to downturn, says energy analyst Parker Gallant.

In a posting on his website today, he says the trade association is making claims about its value and contribution to Ontario’s economy that don’t stand up to scrutiny.
For example, CanWEA claims that wind power is the lowest-cost option for generating electricity.

“[CanWEA president Hornung] doesn’t specify what he is referring to! One should suspect the reference is to either the LOCE (levelized cost of electricity) or the cost of fuel (wind is free), but in either case his claim has nothing to do with what Ontario ratepayers pay for the intermittent and unreliable nature of the actual wind power generation. That annually averages only 29/30% of its capacity and is out of sync with actual demand 65% of the time.”

And as usual, CanWEA boasts of the environmental benefits of “clean” wind power. The facts say otherwise:

“What is interesting about this latter claim is that the Fraser Institute back in January 2017 in another report stated: ‘The Ontario Ministry of the Environment and Climate Change undertook a special analysis of the role of U.S. emissions in Ontario air quality in 2005, which showed that a majority of O3 (ground level ozone) and PM2.5 (particulate matter) was due to U.S.-based emissions and would not be reduced by cutting emissions in Ontario.’ ”

Read the article here.

Cancel wind power contracts to get electricity bills down: the Fraser Institute

Wind power revenue is from the Global Adjustment subsidy, not actual power sales. Recent moves by government to cancel new contracts won’t get electricity bills down (but will stop them from going up) — more action needed says the Fraser Institute

Electricity Reform in Ontario: Getting Power Prices Down

October 4, 2018

A new report from the Fraser Institute says that decisive action is needed on Ontario’s wind and solar contracts of the new government under Premier Doug Ford is serious about getting consumers’ electricity bills down.

“Energy poverty” is a new watchword in the province as the Liberal governments’ renewable energy policies, which were not based on any kind of cost-benefit analysis, boosted electricity customers’ power bills sky-high, forcing many families to have to choose to “heat or eat.” The association of food banks noted electricity bills as a critical factor in poverty in its 2016 “Hunger Report.”

Moves by the Ford government to cancel new renewables projects, including three huge wind power projects, may stop future increases but they won’t get current bills down.

The answer?

“The logical next step for the government would be to use its legislative powers to cancel funding commitments under the FIT contracts. This would reduce the GA by almost 40 percent, resulting in an approximately 24 percent reduction in residential electricity prices.

In addition to cancelling the existing FIT contracts, the Ontario government could take further action to reform various other components of the GA, including reducing payments to the relatively new small-scale hydroelectric plants of Ontario Power Generation (OPG) and cutting funding for unneeded conservations programs. In order to quantify the potential consumer price reductions from such measures it would be necessary to examine detailed GA allocation accounts, which have not been released publicly.”

Read the report from the Fraser Institute here: https://www.fraserinstitute.org/studies/electricity-reform-in-ontario-getting-power-prices-down

 

 

Why the Green Energy Act had to go: PostMedia editor Lorrie Goldstein

Good riddance to toxic Green Energy Act

PostMedia

September 21, 2018

OPINION

By Lorrie Goldstein

The new Belle River project by Samsung will cost about $700 million, and is an example of the damage brought by the Green Energy Act.

 

By scrapping the Green Energy Act, passed by former Liberal premier Dalton McGuinty in 2009, Premier Doug Ford is ending one of the worst legislative disasters ever inflicted on the people of Ontario.

Ford ran on repealing the GEA and the end of this appalling legislation cannot come soon enough.

The GEA is largely responsible for Ontario’s skyrocketing electricity prices.

It’s the reason we’re paying outrageously high prices for green energy the Liberals didn’t need in order to eliminate coal power, which was actually done using nuclear power and natural gas.

The jobs the Liberals promised under the GEA never materialized, according to former Ontario auditor general Jim McCarter in his 2011 annual report.

The GEA made Ontario’s energy grid less efficient because it required the province to buy expensive and unreliable wind and solar power from green energy developers under 20-year contracts, before purchasing other forms of energy.

Auditor General Bonnie Lysyk reported in 2016 that Ontario electricity consumers had overpaid $9.2 billion for green energy, because the Liberals ignored the advice of their own experts on how to price it.

The GEA led to the gas plants scandal, because the Liberals had to frantically build new natural gas plants to back up the unreliable power they were getting from wind and solar energy, then scrapped the gas plants planned for Oakville and Mississauga to save Liberal seats in the 2011 election.

As PC Infrastructure Minister Monte McNaughton said Thursday, the GEA took away the planning rights of municipalities, which will now be restored, leaving them without any say in the location of green energy infrastructure.

That deprived Ontarians of natural justice, turning neighbour against neighbour as developers quietly signed deals to lease privately-owned lands in rural communities for massive wind turbines and solar farms, with the projects then sprung on those communities as a fait accompli, in which they had no meaningful say.

NDP Leader Andrea Horwath, still ranting about Ford cutting the size of Toronto council in half, voted with the Liberals to pass the GEA, a far more sweeping attack on municipal governments.

Under the GEA, the Liberals abdicated from the proper role of government, which is to balance public and private interests.

Instead, they became cheerleaders for the wealthy green energy lobby.

Citizens opposed to green energy projects imposed on their communities faced the impossible task of fighting the industry and the Liberal government.

Documents released under the Freedom of Information Act, reported by the CBC, revealed the Liberals ignored warnings from their own environment ministry that the province needed stricter noise limits on turbines, had no reliable way to monitor or enforce them, and that computer models for determining residential setbacks were flawed.

In 2011, when McCarter investigated the Liberals’ renewable energy strategy built around the GEA, he reported his auditors had to start from scratch, because the Liberals, incredibly, “had not recently conducted any audit work on renewable energy initiatives.”

McCarter warned the GEA had, “created a new process to expedite the development of renewable energy by providing the Minister (of Energy) with the authority to supersede many of the government’s usual planning and regulatory processes … As a result no comprehensive business-case evaluation was done to objectively evaluate” its financial impacts.

Ford is right to scrap the GEA. 

The tragedy is that the economic damage it caused under the McGuinty/Wynne Liberals will be felt for decades to come.

Ontario cancels “disastrous” Green Energy Act

Protesters march in Picton, Ontario over a large wind power project. Goodbye, GEA (Photo Wind Concerns Ontario]

September 20. 2018

The new Ontario government has cancelled the Green Energy Act in an announcement today, ending so-called “sweetheart” deals for expensive renewable energy that hiked consumers’ power bills and brought hardship to Ontario rural communities through forced industrialization.

Wind Concerns Ontario has long advocated for cancellation of the act which promoted large-scale wind power projects, without any cost-benefit or financial analysis, as was recommended to the McGuinty-Wynne governments by two Auditors General.

“This is the first step in the unwinding of the terrible damage done to our quiet rural communities,” said president Jane Wilson. “We know that the Green Energy removed democracy for our towns, hamlets and villages and forced upon them huge, noisy power generators that had enormous environmental, social and human impacts. Those impacts are still being felt as people are living with the noise and vibration, enduring endless sleepless nights and a range of harmful health effects from exposure to turbine noise emissions.”

The government News Release follows:

 

 Ontario’s Government for the People Introduces Legislation to Repeal the Green Energy Act

Municipalities to have final say on new energy projects

 

September 20, 2018

 

TORONTO — Ontario’s Government for the People is delivering on its promise to repeal the Green Energy Act, 2009, Greg Rickford, Minister of Energy, Northern Development and Mines, and Monte McNaughton, Minister of Infrastructure, announced today.

The original Green Energy Act led to the disastrous feed-in-tariff program and skyrocketing electricity rates for Ontario families, and took away powers from municipalities to stop expensive and unneeded energy projects in their communities. Under the last government energy rates tripled, hurting families and driving manufacturing jobs out of Ontario.

“The Green Energy Act represents the largest transfer of money from the poor and middle class to the rich in Ontario’s history,” said Minister Rickford.

“Well-connected energy insiders made fortunes putting up wind-farms and solar panels that gouge hydro consumers in order to generate electricity that Ontario doesn’t need.” Minister McNaughton added. “Today we are proud to say that the party with taxpayers’ money is over.”

The ministers announced that the government has introduced legislation that, if passed, will fully strike the Green Energy Act from the province’s books. This will include repealing provisions that stripped away the power of local municipalities to block unwanted wind and solar farms.

“The Green Energy Act allowed the previous government to trample over the rights of families, businesses and municipalities across rural Ontario,” said Minister McNaughton. “But we believe the people of Ontario should have the final say about what gets built in their communities.”

The proposed legislation would give the government the authority to stop approvals for wasteful energy projects where the need for electricity has not been demonstrated. This would put the brakes on additional projects that would add costs to electricity bills that the people of Ontario simply cannot afford.

“One of the first actions your government took was to cancel 758 expensive and wasteful energy projects as part of our plan to cut hydro rates by 12 per cent for the people of Ontario, saving $790 million for electricity customers,” said Minister Rickford. “The days of sweetheart deals for energy insiders and unpopular projects forced on local municipalities are over.”

QUICK FACTS

  • According to the Ontario Energy Board and the Independent Energy System Operator, wind and solar added $3.75 billion in costs to electricity bills in 2017.
  • Wind and solar represent just 11 per cent of total generation in Ontario, but reflect 30 per cent of Global Adjustment costs that are borne by electricity customers
  • In 2017, 26 per cent of electricity generated from wind and solar was curtailed, or wasted. This is electricity that Ontarians paid for, but didn’t need or use.

 

 

Natasha Demetriades

Communications Branch

natasha.demetriades@ontario.ca

416-327-3855

Available Online

Disponible en Français

 

Wind turbine angst on Amherst Island: will the island community heal?

“Friend against friend”: Of the 420 people on Amherst Island, 350 opposed the “Windlectric” wind power project, Farmers’ Forum reports. The result is a community ripped apart, that may never come together again

Turbines on tiny Amherst Island. [Photo from Association to Protect Amherst Island]
September 8, 2018

Republished from

FARMERS FORUM

By Tom Collins and Patrick Meagher

Amherst Island — The blades on 26 new wind turbines on Amherst Island started turning in mid-June following a decade-long battle that divided the small island community west of Kingston and turned friend against friend.

Some people still don’t wave to neighbours. Others decline to buy products from those who hold an opposing view, at the Saturday morning market.

The island (population 420) is now home to the fourth operating wind energy project in Eastern Ontario. About 350 islanders joined an association to stop the turbines. There are 86 turbines on the next island over, Wolfe Island, five more turbines just west of Kingston [Ernestown], and 10 at Brinston, 20 minutes southeast of Kemptville.

A Prince Edward County project that was under construction was recently cancelled by Premier Dog Ford as a cost-saving measure.

Several people said the Amherst Island community–you take a ferry to get there–was mostly split between two factions: the anti-turbine group included those who moved to the island since the 1990s and don’t own much land. The pro-turbine group consists of generational families with plenty of space to host turbines.

Sheep farmer Dave Willard, whose family has lived on the island since 1850, has two turbines on his farm and said while things have gotten better, there are still four people who won’t wave to him when he passes by.

“These are not people I grew up with,” he said, adding that turbines are divisive because of the visual aspect. “It’s just the way it is. It doesn’t bother me much.”

There are 17 landowners hosting the 26 turbines. Willard says while there will be good years and bad years, he estimated he won’t earn less than $10,000 a year from each turbine. “It doesn’t matter. If it were $2,000 a year, that would be fine by me,” he said.

Sheep farmer Cherry Allen at Flat Foot Farm is Willard’s neighbor and used to have 1,600 ewes. But they had to cut back to 600 because of the turbine construction on land they rented.

Allen, who runs the farm with partner Mark Ritchie, said they run a closed flock and it will take about three or four years to get back to 1,600 ewes.

Allen, who opposes the turbines, said that one of Willard’s turbines is 700 metres from her house. She said she can hear the turbine but it’s far enough away that she blocks out the noise.

While she doesn’t find them an eyesore, “they remind me of all the angst that has gone on before this and is still going on,” she said, adding that she doesn’t think the community will heal for a generation. “It’s going to take that long to rebuild. It’s pretty sad.”

Sheep farmer Ian Murray of Topsy Farms said his farm was approached several times by Algonquin Power to host a turbine. The farm is run by five partners and Murray said one of the partners didn’t like the look of the turbines.

Too much control by the power developer

Murray felt the wind companies wanted too much control. “We felt it was inappropriate for Amherst Island,” he said. “Saying that, I have no problem with my neighbours…. I have a big problem with the previous Ontario government, making things so lucrative.”

Homeowner Laurie Kilpatrick said the wind carries the noise that can sound like an airplane that never arrives, or a constant “swish, swish, swish.”

The last of Brian Little’s four children headed off to university this year,so Little put the family’s island home up for sale. He can see eight turbines from his back deck and hasn’t had an offer in the six months he’s tried to sell. He’s also close to a substation where all the turbine electricity is collected.”

They don’t do anything

“Prior to the Green Energy Act, you couldn’t build within 1,100 metres of a residence or school. In our case, the substation is 400 metres from our house and 700 metres from an elementary school.”

“It frustrates me that they don’t do anything. We have more than enough electricity in this province.”

Little has a point. Other sources of energy can provide enough power in the province. As it stands, Ontario sells excess power at a loss to U.S. states and Ontario has the most expensive electricity in North America.

Looking at one weekend in July, Ontario’s wind power produced 1.3 per cent of Ontario’s demand for energy, and there were 2,515 turbines operating in Ontario, as of December, the vast majority in Western Ontario, said Parker Gallant, a green energy critic who writes an energy sector blog.

He estimated that wind power costs Ontario taxpayers a net loss of $1.9 billion per year.

 

 

 

CanWEA’s Alberta-Ontario power play

Big Wind’s Canadian lobbyist is not letting the bad experiences in Ontario halt its “green” dream, and is now focused on Alberta. (And, it really really hopes Ontario forgets all the bad stuff.)

 

Angry Ontario citizen confronts Dalton McGuinty, sponsor of Ontario’s Green Energy Act which began the wind power invasion of rural Ontario. She’s still mad…

September 4, 2018

 

The Canadian Wind Energy Association or CanWEA is enacting a hard-hitting PR campaign, promoting wind power as a “low-cost” form of electrical power generation that can also provide hundreds of jobs. Aimed at hard-hit Alberta, the message is clear: you get to meet climate/environment goals, grow your economy (or at least keep it from going over a cliff), and replace the faltering oil industry.

The lobbyist even points to a recent report that apparently confirms all that so you don’t have to just take their word for it.

But there’s a problem. Energy commentator Parker Gallant in his newest post says that the report referred to by CanWEA fails to explain that the jobs will be temporary, and also, that they may not actually be in Alberta.

And there’s another problem: the newest rosy outlook for wind power fails to chronicle the disastrous history of wind power development in Ontario. Two Auditors General took the previous Liberal governments to task for pushing wind power forward without any cost-benefit analysis, and current Auditor General Bonnie Lysyk has noted that, because of above-market contracts awarded by those same McGuinty and Wynne governments, Ontario’s electricity customers overpaid for power by more than $9 billion.

The Association of Ontario Food Banks linked growing poverty and specifically “energy poverty” to Ontario’s skyrocketing electricity bills, in its 2016 annual report on hunger in the province.

Electricity bills have been named as a factor in businesses leaving Ontario and job losses.

But even looking back at a road full of failure—high electricity bills, environmental harm such as dead birds and endangered bats, and thousands of citizen noise complaints—CanWEA is not giving up where money might still be made. The lobbyist is hoping to sway the new Ford government not to cancel wind power contracts as the PC Party pledged to do during the election because wind power can happily fill in for nuclear plants when several units have to go offline in a couple of years for refurbishment. Rumour has it they have even purchased ads on Toronto Transit vehicles.

The sad fact, omitted by CanWEA, is that wind can’t replace anything. It is intermittent, unreliable, and in Ontario, produced out-of-phase with demand. Output from Ontario’s closed coal power plants was made up by nuclear and hydro.

Ontario’s Society of Professional Engineers says that, because wind power is intermittent and needs back-up from other forms of generation, meaning natural gas, wind power will actually increase carbon emissions, not reduce them.

It’s even worse than that: According to Marc Brouillette who wrote a report for the Coalition for Clean Energy, wind power in Ontario is wasted almost 70 percent of the time. Moreover, Ontario electricity customers not only pay for wasted power, they pay generators NOT to produce power during frequent situations of surplus.

Low-cost? Reliable?

Energy analyst Steve Aplin of Ottawa recently commented on Twitter in response to CanWEA’s that wind power is a “sinkhole for ratepayers’ money.”

We really hope Alberta is smarter than politicians were back in 2003 in Ontario; we hope they can see the truth.

Contact@windconcernsontario.ca

 

Courtesy Steve Aplin

Wind farm contracts can be cancelled: legal opinion

Companies without a Notice To Proceed or who have not reached key milestones “have reason to be concerned”

July 6, 2018

In a just released review of the energy landscape in Ontario under the new Ford government, Mike Richmond, wind power contract specialist with law firm McMillan LLP, says the contracts between government and wind power developers can be cancelled in certain situations.

Wind Concerns Ontario has long maintained this to be true, even recommending to the Wynne government that an effective way to reduce electricity bills for Ontario consumers — or at least, not have them go higher — was to cancel the $1.3B of new wind power contracts and to cancel any others where significant milestones have not been met.

Mr. Richmond’s legal opinion and review is here.

The government will be directing IESO to exercise termination rights

An excerpt:

Developers, lenders, construction firms, installers, landlords and other clients with interests in contracts for projects which have not yet been granted Notice to Proceed (NTP) by the Independent Electricity System Operator (IESO) (or acceptance of Key Development Milestones for Large Renewable Procurement (LRP I) projects) have reason to be concerned.

While the [PC election] platform was not long on detail, it was absolutely clear that where pre-construction contracts contain provisions allowing the IESO to terminate at or prior to NTP or other equivalent milestones, before expensive capital equipment has been delivered and installed, the Government will be directing the IESO to exercise those termination rights.

Anticipating such a directive, the IESO had already begun holding back on the issuance of NTP approvals for Feed-In Tariff (FIT) projects prior to the June 29 swearing-in, instead electing to issue NTP Deferral Notices. By doing so, the IESO is able to limit its liability for the eventual termination of those projects to the “Pre-Construction Liability Limit”, which is set at:

  • $400,000 plus $2.00/kW for wind, biogas or biomass facilities;
  • $250,000 plus $10.00/kW for solar facilities; or
  • $500,000 plus $20.00/kW for waterpower facilities.

These figures only represent liability caps. To be eligible even for these amounts, developers will have to be able to demonstrate that they incurred, after being awarded a FIT Contract, “soft” costs up to these amount for items such as environmental approvals, EPC and financing contract negotiations, land rights, resource assessments, connection cost deposits, equipment deposits and permitting. Costs spent on generating equipment (other than reasonable non-refundable deposits), and amounts representing lost profits, are not eligible.

Some questions remain:

Given the stated election platform, and the fact these contracts were a key campaign issue, why then did the Wynne government issue a Renewable Energy Approval to Portugal-based EDPR  for its unneeded 100-MW “Nation Rise” wind project just days before the writ was drawn up for the June election, and why did the IESO toss its termination rights overboard on the WPD “White Pines” project, during the active election campaign?

What pressures were brought to bear on the former government by the power developers?

And why are taxpayers now being forced to pay for the new government’s defence of a bad decision made by the Wynne government, in the Nation Rise appeal?

contact@windconcernsontario.ca

 

North Stormont group asks Premier Ford to halt wind power project, legal action

Nation Rise project not needed; community group says cancel it now, save millions

Expensive legal action will cost taxpayers more for unnecessary power project, community group says

OTTAWA  July 3, 2018— The citizens’ group opposing the 100-megawatt “Nation Rise” wind power project asked Premier Doug Ford and his new government today to state its intention to cancel the project’s contract, and halt legal action related to its approval.

The power project, to be located just south of Ottawa, received Renewable Energy Approval just days before the writ for Ontario’s June election was drawn up.

The community filed an appeal of the approval, based on environment and health concerns, which is set to begin Thursday July 5 with a hearing in Finch, Ontario.

Given the new government’s campaign pledge to end contracts for projects which do not have final approval, however, the legal action is a waste of time and taxpayer money, says Margarent Benke, spokesperson for  the Concerned Citizens of North Stormont.

Ministry of the Environment employees and lawyers must travel from Toronto and mount a defence of the approval, Benke says, which makes no sense if the government plans to cancel the unnecessary power project.

“We made an urgent request today for action on the Nation Rise project. It will cost the people of Ontario a base price of $500 million over 20 years, and add to our electricity bills,” says Benke. “The Environmental Review Tribunal Hearing will represent even more cost to the government and to the people of Ontario, and more financial and emotional strain to the people of North Stormont.”
 
The power project would expose citizens near Finch, Crysler and Berwick to environmental noise from huge, 3.2-megawatt wind turbines; most of the turbines would also be located on an area designated as a “highly vulnerable aquifer.”
Ontario currently has a surplus of electrical power; wind power projects produce power out-of-phase with demand, and Ontario’s Auditor General has criticized the contracts for their above market rates. Auditor General Bonnie Lysyk has said Ontario electricity customers overpaid for renewable power by $9.2 billion.
Contact: info@concernedcitizensofnorthstormont.ca
contact@windconcernsontario.ca 
 

Renewable power a factor in Ontario’s election upset

The people were right: no demonstrated environmental benefit, and plenty of economic hardship.

June 13, 2018

Now that Ontario’s election is over, and there is a majority government in place, plenty of political watchers are commenting on what happened to create such a dramatic change in Ontario government.

One factor that comes up is Ontario’s disaster plan for renewable energy — and by that, we mean WIND — and the effect it had on Ontario consumers’ electricity bills.

Two Auditors General told the government it was paying too much for renewable power, as much as twice the rate in other jurisdictions. Auditor General Bonnie Lysyk (who has had many problems with accountability and governance with the Wynne Liberal government) said Ontario consumers overpaid by more than $9 billion.

That’s not just a few dollars extra on the electricity bills — that’s multiples of previous bills, so much so that “energy poverty” became a new expression in Ontario. The Association of Food Banks of Ontario put a photo of a light bulb on their 2016 hunger report.

Here are a few articles popping up that look back at the damage done to a province that was once Canada’s “economic engine”, all for an unproven ideology.

Fraser Institute: https://www.fraserinstitute.org/blogs/ontario-s-new-government-should-genuinely-reform-province-s-electricity-system

TVOntario Current Affairs https://tvo.org/article/current-affairs/one-overlooked-issue-that-cost-the-liberals-the-election

Economist Jack Mintz/Financial Post http://business.financialpost.com/opinion/jack-mintz-how-a-doug-ford-government-can-make-ontario-rich-again?utm_term=Autofeed&utm_campaign=Echobox&utm_medium=Social&utm_source=Twitter#Echobox=1528890290

Undoing the damage of the Green Energy Act won’t be easy, writes economist and public policy professor Jack Mintz, but it has to be done if Ontario is to save itself.

Worst of all for Ontario’s rural residents, are the comments and analysis of the wind power program: in terms of environmental benefits, it was all for nothing. Industrial-scale wind power has never demonstrated a benefit in cutting CO2 emissions. In fact, the way wind power was done in Ontario is now a “black eye” for green energy all over the world, says a journal in the renewables industry.

That’s quite a legacy for one political party.

Now, we pick up the pieces.

 

How to save $2 billion a year in Ontario on the energy file: Parker Gallant

Re-posted with permission from Parker Gallant Energy Perspectives.

Parker Gallant : Has a few ideas [Photo: Metroland Media]

If I were the new Minister of Energy …

On June 8, after the Ontario election, Ontario’s new premier – whoever that is – will be thinking of selecting a new Minister of Energy. With the challenges in that portfolio, the immediate question for anyone considering accepting the job would be, how can one fix the electricity side of the portfolio after the damage done over the previous 15 years by my predecessors?

Here are a few “fixes” I would take that to try to undo some of the bad decisions of the past, if I were the new energy minister.

Green Energy Act

Immediately start work on cancelling the Green Energy Act

Conservation

Knowing Ontario has a large surplus of generation we export for 10/15 per cent of its cost I would immediately cancel planned conservation spending. This would save ratepayers over $433 million annually.

Wind and solar contracts

I would immediately cancel any contracts that are outstanding, but haven’t been started and may be in the process of a challenge via either the Environmental Review Tribunal) or in the courts.    This would save ratepayers an estimated $200 million annually.

Wind turbine noise and environmental non-compliance

Work with the (new) MOECC Minister to insure they effect compliance by industrial wind developers both for exceeding noise level standards and operations during bird and bat migration periods. Failure to comply would elicit large fines. This would save ratepayers an estimated $200/400 million annually.

Change the “baseload” designation of generation for wind and solar developments

Both wind and solar generation is unreliable and intermittent, dependent on weather, and as such should not be granted “first to the grid rights”. They are backed up by gas or hydro generation with both paid for either spilling water or idling when the wind blows or the sun shines.

The cost is phenomenal.

As an example, wind turbines annually generate at approximately 30 per cent of rated capacity but 65 per cent of the time power generation comes at the wrong time of day and not needed. The estimated annual ratepayer savings if wind generation was replaced by hydro would be $400 million and if replaced by gas, in excess of $600 million.

Charge a fee (tax) for out of phase/need generation for wind and solar

Should the foregoing “baseload” re-designation be impossible based on legal issues I would direct the IESO to institute a fee that would apply to wind and solar generation delivered during mid-peak and off-peak times. A higher fee would also apply when wind is curtailed and would suggest a fee of $10/per MWh delivered during off-peak and mid-peak hours and a $20/per MWh for curtailed generation.  The estimated annual revenue generated would be a minimum of $150 million

Increase LEAP contributions from LDCs to 1 per cent of distribution revenues

The OEB would be instructed to institute an increase in the LDC (local distribution companies) LEAP (low-income assistance program) from .12 per cent to 1 per cent and reduce the allowed ROI (return on investment) by the difference.  This would deliver an estimated $60/80 million annually reducing the revenue requirement for the OESP (Ontario electricity support program) currently funded by taxpayers.

Close unused OPG generation plants

OPG currently has two power plants that are only very, very, occasionally called on to generate electricity yet ratepayers pick up the costs for OMA (operations, maintenance and administration). One of these is the Thunder Bay, the former coal plant converted to high-end biomass with a capacity of 165 MW. It would produce power at a reported cost of $1.50/kWh (Auditor General’s report). The other unused plant is the Lennox oil/gas plant in Napanee/Bath with a capacity of 2,200 MW that is never used. The estimated annual savings from the closing of these two plants would be in the $200 million range.

Rejig time-of-use (TOU) pricing to allow opt-in or opt-out

TOU pricing is focused on flattening demand by reducing usage during “peak hours” without any consideration of households or businesses. Allow households and small businesses a choice to either agree to TOU pricing or the average price (currently 8.21 cents/kWh after the 17% Fair Hydro Act reduction) over a week.  This would benefit households with shift workers, seniors, people with disabilities utilizing equipment drawing power and small businesses and would likely increase demand and reduce surplus exports thereby reducing our costs associated with those exports.  The estimated annual savings could easily be in the range of $200/400 million annually.

Other initiatives

Niagara water rights

I would conduct an investigation into why our Niagara Beck plants have not increased generation since the $1.5 billion spent on “Big Becky” (150 MW capacity) which was touted to produce enough additional power to provide electricity to 160,000 homes or over 1.4 million MWh. Are we constrained by water rights with the U.S., or is it a lack of transmission capabilities to get the power to where demand resides?

MPAC’s wind turbine assessments

One of the previous Minister’s of Finance instructed MPAC (Municipal Property Assessment Corp,) to assess industrial wind turbines (IWT) at a maximum of $40,000 per MW of capacity despite their value of $1.5/2 million each.   I would request whomever is appointed by the new Premier to the Finance Ministry portfolio to recall those instructions and allow MPAC to reassess IWT at their current values over the terms of their contracts.  This would immediately benefit municipalities (via higher realty taxes) that originally had no ability to accept or reject IWT.

Do a quick addition of the numbers and you will see the benefit to the ratepayers of the province would amount to in excess of $2 billion dollars.

Coincidentally, that is approximately even more than the previous government provided via the Fair Hydro Act. Perhaps we didn’t need to push those costs off to the future for our children and grandchildren to pay!

Now that I have formulated a plan to reduce electricity costs by over $2 billion per annum I can relax, confident that I could indeed handle the portfolio handed to me by the new Premier of the province.

Parker Gallant