Wind Concerns Ontario is a province-wide advocacy organization whose mission is to provide information on the potential impact of industrial-scale wind power generation on the economy, human health, and the natural environment.
“Wind wastes other clean supply and devalues exports.”
In a stunning commentary published yesterday by the Council for Clean and Reliable Energy, energy policy consultant Marc Brouilette says that Ontario’s wind power program is an expensive adventure that does not achieve any of its goals for the environment or economic prosperity, and is in fact, making things worse.
At a cost of $1.5 billion in 2015, Brouillette says, the fact that wind power generation is completely out of sync with demand in Ontario results in added costs for constrained generation form other sources. Constrained nuclear and hydro cost $300 million that year, and a further $200 million in costs was incurred due to “avoided” natural gas generation.
And, the power isn’t even getting to the people who need it. “[O]nly one-half of total provincial wind output makes it to the Central Region and the GTA where most of Ontario’s electricity demand exists,” Brouillette states.
All things considered, wind costs more than $410 per megawatt hour, which is four times the average cost of electricity in Ontario. This is being charged to Ontario’s electricity customers, at an increasing rate.
Ontario should reconsider its commitment to more wind, Brouillette concludes: “these challenges will increase if Ontario proceeds to double wind capacity to the projected ~6,500 MW.”
Surplus, exported power in April could have powered half of Ontario’s homes. Instead, it’s gone … and so is your money.
Ontario’s Minister of Energy claims that Ontario needs a “reliable, efficient and clean electricity system that comes from a number of sources” [sic] but the stats from this past April put the boots to any notion of wind power being “reliable” or “efficient.”
Parker Gallant and Scott Luft have both looked at the report from the Independent Electricity System Operator or IESO, and found that not only was demand at an all-time low that month (the lowest since the IESO began keeping records) but also that curtailed wind power (power we pay the wind power developers for, but do not accept on the grid because it isn’t needed) was at an all-time high.
Two Auditors General have noted that wind power is produced out of phase with demand in Ontario—it seems things are just getting worse.
Here’s how Parker Gallant describes it on his Energy Perspectives blog:
For the month of April 2017, wind power generated and curtailed (521,056 MWh) was 1,374,873 MWh, for a cost of approximately $182 million.
Curtailed wind in April was the highest on record since we began paying for it back in September 2013!
Here’s the fatal math:
net exports of 1.3 million MWh +
the 521,000 of curtailed wind = 18.7% of total Ontario demand.
Combined, the 1,832,176 MWh at the HOEP price of $11.14/MWh and 1.11 cents/kWh and what do you get? Enough power for more than 2.4 million average households (over 50% of all households in the province) with their average need for power at a cost of only $8.35 — for the whole month.
Curtailment of wind is getting worse, as Scott Luft documents, in a chart from his Cold Air Online blog. Curtailment has doubled in the past three years–money for power we don’t need.
Analyst Marc Brouillette in a report prepared for Strategic Policy Economics on the supply mix for power in Ontario, said that ” over 70% of wind generation does not benefit Ontario’s supply capability, and wind generation will not match demand in the OPO Outlook future projections as 50% of the forecasted production is expected to be surplus.” (Page 20)
Seventy percent of wind does not benefit us, and fully 50% is surplus.
Meanwhile, the Ontario government claims they are trying to get electricity bills down, but it appears they are not considering the option of cutting costs.
The contracts given out for $3.3B in new wind power in 2016 should be cancelled, as well as contracts for any projects not yet built, such as the Amherst Island project which has been dubbed “the worst place” for wind turbines because of its effect on migratory birds and other wildlife, to say nothing of a heritage Loyalist community.
Parker Gallant compares power output from wind and the cost to consumers between 2010 and 2016: we’re paying more for intermittent wind power, produced out-of-phase with demand
In 2010, industrial wind turbines (IWT) in Ontario represented total installed capacity of approximately 1,200 megawatts (MW); they generated 2.95 terawatt hours (TWh*) of transmission (TX) and distributed (DX) connected electricity. The power from wind cost Ontario’s ratepayers about $413 million for those 2.95 TWh, about 2.1% of total 2010 consumption. The cost of IWT generation in 2010 was 3.1% of total generation costs (Global Adjustment [GA] + Hourly Ontario Energy Price [HOEP]) and represented 33.5% of “net exports”** of electricity to our neighbours in Michigan, New York, and others.
Jump to 2016: wind turbines represented installed capacity of almost 4,500 MW, and generated and curtailed*** TX and DX connected electricity totaling 13.15 TWh. The cost to Ontario’s ratepayers jumped to $1,894.3 million — about 12.2 % of total generation costs. The 13.15 TWh of generation was 7.9% of Ontario’s total consumption but 94.9% of net exports.
The cost per kilowatt hour of electricity generated by wind in 2010 was 14 cents and in 2016 it had increased to 17.5 cents, despite downward adjustments to the contracted values between 2010 and 2016. That cost doesn’t include the back-up costs of gas generation when the wind doesn’t blow and we need the power, nor does it include costs associated with spilled hydro or steamed off nuclear, but it does include the cost of curtailed wind, which was 2.33 TWh in 2016 and just shy of total wind generated electricity in 2010.
In the seven years from 2010 to 2016, Ontario’s electricity ratepayers picked up total costs of $7.746 billion for 56.9 TWh of grid-accepted and curtailed (4.9 TWh) wind-generated electricity. The actual value given to those 56.9 TWh by the HOEP market was just shy of $570 million meaning ratepayers were forced to pick up the difference of $7.166 billion for power that wasn’t needed. The foregoing is based on the fact we have continually exported our surplus generation since the passing of the Green Energy Act and contracted for IWT generation at above market prices.
During those same seven years, Ontario had “net exports” of 85.95 TWh while curtailing wind, spilling hydro and steaming off nuclear. And, at the same time, we were contracting for gas plant generators that are now only occasionally called on to generate electricity yet are paid considerable dollars for simply idling!
Refinancing wind payments
As noted above the cost of wind generation in 2016 was almost $1.9 billion and represented 15.3% of the Global Adjustment pot. That cost was close to what was inferred in an Energy Ministry press release headlined: “Refinancing the Global Adjustment” but suggesting it was taxpayer owned “infrastructure”: “To relieve the current burden on ratepayers and share costs more fairly, a portion of the GA is being refinanced. Refinancing the GA would provide significant and immediate rate relief by spreading the cost of electricity investments over the expected lifecycle of the infrastructure that has been built.”
What’s really being refinanced is a portion of the guaranteed payments to the wind and solar developers who were contracted at above market rates! So, what is being touted as a 25% reduction includes the 8% provincial portion of the HST and a portion of annual payments being made to wind and solar developers for their intermittent (and unreliable) power.
Premier Wynne’s shell game continues!
May 22, 2017
Note: Special thanks to Scott Luft for his recent chart outlining the data enabling the writer to complete the math associated with this Liberal shell game!
* One TWh equals 1 million MWh and the average household in Ontario reputedly consumes 9 MWh annually, meaning 1 TWh could power 111,000 average household for one year.
** Net exports are total exports less total imports.
*** Ontario commenced paying for “curtailed” wind generation in September 2013.
Re-posed from Parker Gallant’s Energy Perspectives
How badly were ratepayers hit? Millions upon millions for power produced out of phase with demand…
While the Canadian Wind Energy Association, the trade association for the wind power industry and vested interests, continues to maintain that wind power cannot be contributing to Ontario’s rising and unsustainable electricity bills, the facts indicate otherwise. The figures for April 2017 show wind power produced out-of-phase with demand, causing power from other, clean sources to be wasted, and wind power producers paid not to add power to the Ontario grid.
Here is Parker Gallant’s analysis.
The Independent Electricity System Operator or IESO’s 18 month outlook report uses their “Methodology to Perform Long Term Assessments” to forecast what industrial wind turbines (IWT) are likely to generate as a percentage of their rated capacity.
The Methodology description follows.
“Monthly Wind Capacity Contribution (WCC) values are used to forecast the contribution from wind generators. WCC values in percentage of installed capacity are determined from actual historic median wind generator contribution over the last 10 years at the top 5 contiguous demand hours of the day for each winter and summer season, or shoulder period month. The top 5 contiguous demand hours are determined by the frequency of demand peak occurrences over the last 12 months.”
The most recent 18-month outlook forecast wind production at an average (capacity 4,000 MW growing to 4,500 MW) over 12 months at 22.2%, which is well under the assumed 29-30 % capacity claimed by wind developers. For the month of April, IESO forecast wind generation at 33.2% of capacity.
April 2017 has now passed; my friend Scott Luft has posted the actual generation and estimated the curtailed generation produced by Ontario’s contracted IWT. For April, IESO reported grid- and distribution-connected IWT generated almost 703,000 megawatt hours (MWh), or approximately 24% of their generation capacity. Scott also estimated they curtailed 521,000 MWh or 18 % of generation capacity.
So, actual generation could have been 42% of rated capacity as a result of Ontario’s very windy month of April 2017, but Ontario’s demand for power wasn’t sufficient to absorb it! April is typically a “shoulder” month with low demand, but at the same time it is a high generation month for wind turbines.
How badly did Ontario’s ratepayers get hit? In April, they paid the costs to pay wind developers – that doesn’t include the cost of back-up from gas plants or spilled or steamed off emissions-free hydro and nuclear or losses on exported surpluses.
Wind cost=22.9 cents per kWh
For the 703,000 MWh, the cost* of grid accepted generation at $140/MWh was $98.4 million and the cost of the “curtailed” generation at $120/MWh was $62.5 million making the total cost of wind for the month of April $160.9 million. That translates to a cost per MWh of grid accepted wind of $229.50 or 22.9 cents per kWh.
Despite clear evidence that wind turbines fail to provide competitively priced electricity when it is actually needed, the Premier Wynne-led government continues to allow more capacity to be added instead of killing the Green Energy Act and cancelling contracts that have not commenced installation.
* Most wind contracts are priced at 13.5 cents/kilowatt (kWh) and the contracts include a cost of living (COL) annual increase to a maximum of 20% so the current cost is expected to be in the range of $140/MWh or 14cents/kWh.
(Re-posted with permission from Parker Gallant Energy Perspectives)
“Assertions are complete nonsense … only wilful blindness would suggest that wind and solar are low cost”
Recently, energy analyst and occasional columnist for The Financial PostParker Gallant wrote that the Canadian Wind Energy Association (CanWEA) was hitting back at allegations that wind power was contributing to Ontario’s rising electricity bills.
Ontario representative Brandy Gianetta said wind power was a low-cost energy source, and she referred to University of Waterloo professor Jatin Nathwani for support.
Trouble is, she was wrong.
Professor Nathwani took the time to correct CanWEA’s statements in an email to Parker Gallant, published on his Energy Perspectives blog today.
Here is Professor Nathwani’s email:
Dear Mr Gallant:
In your Blog, you have cited Ms. Giannetta’s post on CanWEA’s website on April 24, 2017 as quoted below:
Her article points to two articles that purportedly support the “myth” she is “busting,” but both require closer examination. She cites Waterloo professor Natin Nathwani’s, (PhD in chemical engineering and a 2016 “Sunshine list” salary of $184,550) article of March 6, 2017, posted on the TVO website, which supports Premier Wynne’s dubious claims of “a massive investment, on the order of $50 billion, for the renewal of Ontario’s aging electricity infrastructure.” Professor Nathwani offers no breakdown of the investment which suggests he simply took Premier Wynne’s assertion from her “Fair Hydro Plan” statement as a fact! It would be easy to tear apart Professor Nathwani’s math calculations — for example, “The total electricity bill for Ontario consumers has increased at 3.2 per cent per year on average” — but anyone reading that blatant claim knows his math is flawed!
First and foremost, the record needs to be corrected since Ms Giannetta’s assertions are simply incorrect and should not be allowed to stand.
If she has better information on the $50 billion investment provided in the Ministry of Energy’s Technical Briefing, she should make that available.
The breakdown of the investment pattern in generation for the period 2008-2014 is as follows:
Wind Energy $6 Billion (Installed Capacity 2600 MW)
Solar Energy $5.8 Billion (Installed Capacity 1400 MW)
Bio-energy $1.3 Billion (Installed 325MW)
Natural Gas $5.8 Billion
Water Power $5 Billion (installed Capacity 1980 MW)
Nuclear $5.2 Billion
Total Installed Capacity Added to the Ontario Grid from 2008-2014 was 12,731 MW of which Renewable Power Capacity was 6298MW at a cost of $18.2 Billion.
For the complete investment pattern from 2005 to 2015, please see data available at the IESO Website.
In sum, generation additions (plus removal of coal costs) are in the order of $35 billion and additional investments relate to transmission and distribution assets.
I take strong exception to her last statement suggesting that the 3.2 percent per year (on average) increase in total electricity cost from 2006 to 2015 in real 2016$. The source for this information is a matter of public record and is available at the IESO website.
Ms Giannetta’s assertion is complete nonsense because she does not understand the difference between electricity bill and generation cost. Let Ms Gianetta identify the “blatant flaw.”
As for the electricity bill that the consumer sees, there is a wide variation across Ontario and this is primarily related to Distribution.
The Ontario Energy Board report on Electricity Rates in different cities provides a view across Ontario:
For example, the average bill for a for a typical 750kWh home Ontario comes is $130 per month.
In Toronto it is $142, Waterloo at $130 and Cornwall at $106. On the high side is Hydro One networks is $182 and this is primarily related to cost of service for low density, rural areas.
Your Table 2 Total Electricity Supply Cost is helpful and correctly highlights the cost differences of different generation supply.
Only wilful blindness on Ms Giannetta’s part would suggest that wind and solar are coming in at a low cost.
Jatin Nathwani, PhD, P.Eng
Professor and Ontario Research Chair in Public Policy for Sustainable Energy
Executive Director, Waterloo Institute for Sustainable Energy (WISE)
Faculty of Engineering and Faculty of Environment Fellow, Balsillie School of International Affairs (BSIA)
Glenn Thibeault claims his energy policies saved lives. Photo: Darren MacDonald Sudbury.com
In a recent interview, Ontario Energy Minister Glenn Thibeault spoke in defence of his government’s energy policies, which he admits have been responsible for escalating electricity bills and creating “energy poverty” in the formerly prosperous province.
The Minister claimed that his government didn’t self-promote the benefits of its policies often enough, and offered some public health figures as proof.
“When I talk about energy,” the Minister said, “we don’t [talk] about the fact we haven’t had a smog day in three years. Our air pollution hospitalizations are down by 41 per cent, deaths are down 23 per cent.”
Parker Gallant took the initiative to query the Minister’s office on the source of those dramatic figures and learned that whoever provided them to Mr. Thibeault for “talking points” had actually taken them from a report which in turn referenced another report, which had nothing whatever to do with energy and electricity generation in Ontario.
The figures actually came from a report by Toronto Public Health on air pollution in that city, Gallant says in his Energy Perspectives blog.
Here is the relevant excerpt:
These estimates include the impact of pollution originating in other parts of Ontario and the United States and represent a decrease of 23% in premature deaths and 41% in hospitalizations as compared with 2004 estimates. Air pollution in Toronto comes mainly from traffic, industrial sources, residential and commercial sources, and off-road mobile sources such as rail, air, and marine sources. Of these sources, traffic has the greatest impact on health, contributing to about 280 premature deaths and 1,090 hospitalizations each year…”
To be sure, air pollution is a major concern in public health, but for a Minister of the Crown to misappropriate figures to bolster policy in another area entirely is unacceptable, and deceitful.
We recall again the fact that two Auditors General for Ontario chastised the government for having implemented a green energy program including highly invasive wind power projects in quiet rural communities against their wishes, with no cost-benefit analysis. The truth about health benefits might have shown up, if a real independent analysis had ever been done.
Parker Gallant and Scott Luft have put together the numbers for the electricity sector over the Easter weekend … and it’s nowhere near as pretty as an Easter bonnet.
Demand is so low that 99,000 megawatt hours (MWh) of wind power had to be “curtailed” or constrained at a cost of $11.9 million for the three days, and the total cost of wind power was estimated to be $20 million. That brings the cost of delivered wind power to 33.5 cents per KWh.
The nice weather on Easter weekend in Ontario disguised the fact that April 14th, 15th and 16th were really bad days for electricity customers.
Scott Luft’s daily reports detailed the bad news, even before the Independent Electricity System Operator or IESO got out their daily summary for April 12th. Some of the information in Scott’s reports are estimates, but they have always proven to be on the conservative side. These three reports paint a disturbing picture of what’s going on, and how badly the Ontario government is mismanaging the electricity file.
Here are a few of the events that our Energy Minister Glenn Thibeault and Premier Wynne should find embarrassing. They also confirm what many of us have been telling them for several years.
First, Thursday April 13th saw a disclosure from the Energy Ministry that Ontario paid out $28,095,332 including about $240,000 in interest to Windstream Energy to satisfy the award made to them under the NAFTA (North American Free Trade Agreement) tribunal, due to cancellation of a 300-MW offshore industrial wind turbine project.
Wasted, unneeded wind power
Second, the HOEP (hourly Ontario electricity price) market, traded all of Ontario’s generation over the three days at “0” (zero) or negative value. While total demand for electricity was 1,031,448 MWh over the three days the HOEP market valued it at -$869,220 or an average of -.84 cents/MWh. The “0” and negative values for the HOEP lasted 77 continuous hours, breaking a prior record of 62 hours.
Third, during the three days, ratepayers picked up the bill for 99,109 MWh of curtailed wind which exceeded the transmission (TX) and distribution (DX) connected wind by 60.2%. Curtailed wind at an estimated $120/MWh alone cost ratepayers $11.9 million, driving the price of delivered wind (61,882MWh) to a cost of $335.34/MWh or 33.5 cents a kWh. Total wind costs were $20.8 million.
Fourth, solar power over the three days generated and curtailed (1,124 MWh) 35,539 MWh at a cost of $16.8 million, which works out to $472.86/MWh or 47.3 cents/kWh.
Fifth was the cost of gas which in three days produced 18,433 MWh, but the cost was $12.5 million and $676.56/MWh or 67.7 cents/kWh. The 9,943 MW of IESO grid-connected gas operated at 2.6% of actual capacity during the three days.
Sixth was the generosity shown to our neighbours in New York, Michigan and Quebec who took delivery of 157,768 MWh of free power along with a payment of $132,525.
The quick math on the above indicates a cost of wind, solar and gas generation plus the payment for exported power comes to $50.2 million.
Nuclear and hydro was all we needed
That’s bad enough, but if you look at nuclear and hydro generation during those three days, clearly the $50.2 million was “money for nothing” paid for by Ontario’s ratepayers. Nuclear (including steamed-off of 49,118 MWh) was 688,981 MWh and combined with hydro generation of 324,001 MWh of could have provided 1,012,982 MWh versus Ontario’s demand over those three days of 869,232 MWh leaving 143,750 MWh of surplus. Three days of nuclear and hydro cost $61.9 million or 6.1 cents/kWh.
Bottom line? Ontario ratepayers picked up the bill for not only the $28.1 million paid to Windstream for a canceled offshore wind project, but also another $50.2 million, making the past four days very expensive for everyone.
The $78.3 million could have been better spent on health care or so many other pressing needs!
It’s time to kill the Green Energy Act and cancel any uncompleted wind and solar contracts before all our weekends turn out like this one!
The sitting Liberal government persists in “green” ideology despite energy poverty, no environmental benefit from industrial-scale wind turbines
Sam Oosterhoff, MPP for Niagara-West Glanbrook, put forward a Private Member’s Bill in the Legislature yesterday, proposing the government halt all wind power approvals in unwilling host communities.
An excerpt from his speech:
Industrial wind turbines are one of the reasons people are facing a choice between heating and eating. Expensive and counterproductive power subsidies for turbines we don’t want or need have contributed to the soaring hydro prices that are among the greatest burdens the people of Ontario have to face.
Whether they are spending billions of dollars to stretch out future debt payments or handing out rich subsidies to industrial wind turbine operators, this government will always stick Ontarians with the bill.
I’m not just tilting at windmills like Don Quixote, but a comparison is in order. Cervantes, in his famous novel, wrote about a dreamer of no substance who could not perceive reality—sounds a lot like the Liberals and their hydro plan. This government’s scheme does nothing to address the root cause of the Ontario energy affordability crisis: the Liberals’ Green Energy Act. We call it the bad contracts act because it was designed to benefit Liberal corporate donors, and locks taxpayers into a 20-year contract for overpriced wind and solar power. It’s also for energy we don’t need.
Since 2009, Ontario has given away $6 billion—$6 billion—in surplus energy to US states. States that have lower energy costs than Ontario are getting electricity from us at discount prices. We’re giving businesses across the border a competitive edge over our own Ontario businesses. Truly, Premier Wynne is the best Minister of Economic Development the United States has ever had.
Speaker, I’d like to remind everyone that although the NDP also like to complain about high hydro costs and say that they too are on the side of local communities, they were complicit in setting the stage for industrial turbines being forced down the throats of rural municipalities across Ontario. The NDP joined the Liberals to pass the bad contracts act that enabled the government to sign contracts with big hydro companies that aren’t transparent and can’t be examined. Municipal governments also say that their planning authority was eliminated by this provincial legislation. …
The Minister of Energy has acknowledged that this government has made mistakes with the energy file. The Premier has acknowledged that there are serious issues on the energy file that her government is going to be working on. Yet they don’t seem willing to address the fundamental reasons behind those mistakes. Today, I’m giving them a chance, and I hope they’ll take up the chance that this government can make remedy. If they’re actually sorry, they will vote for this motion. If the Liberal government is actually willing to listen to rural residents, to listen to municipalities and to follow up on the words of their throne speech, I hope their caucus will vote in favour of my motion.
Several other MPPs spoke as well, including Jim McDonell, PC Energy Critic Todd Smith, and Michael Mantha and Gilles Bisson for the NDP.
Read the transcript and the results of the recorded vote here.
DUTTON – A year after it was approved by the province, residents of a London-area rural township are still fighting against a wind farm that’s going ahead despite an overwhelming local vote against such projects.
Thursday, more than 60 people gathered at the Dutton Community Centre during one of two public meetings, organized by Chicago-based Invenergy, to protest against what they say is another broken promise by the Liberal government and a violation of their rights.
“Everything about it is a slap in the face, especially when you look at what is happening to our hydro bills,” said Dave Congdon of Dutton Dunwich Opponents of Wind Turbines, a community group opposed to the project that organized Thursday’s demonstration.
“As a democratic society we voted in opposition of this (project) and yet here we are still fighting them . . . it doesn’t seem to matter that we don’t want (the turbines).”
Dutton Dunwich, in Elgin County, in 2014 became Ontario’s first municipality to hold a referendum asking residents their opinion on such mega-projects.
More than half the residents took part, with 84 per cent voting against the wind farms.
Last year the province gave Invenergy the green light to proceed with the project, called the Strong Breeze Wind Farm, in part thanks to the support of six Ontario First Nations groups, one of them located 1,000 kilometres and a time zone away from the municipality.
One local First Nations man at the rally said outside aboriginal communities have no business in Dutton Dunwich’s affairs.
“They have no right and no say in bringing corporations to this land,” said Darryl Chrisjohn, a member of the Oneida Settlement near Dutton Dunwich.
Protestors say the provincial Liberals are ignoring residents.
“That’s what bugs people the most,” Dutton Dunwich Mayor Cameron McWilliam said. “They don’t want to have, as I call it, the ‘province of Toronto’ dictating to rural communities what to do.”
James Murphy, vice president of business development for Invenergy, defended the project, saying it has received 75 per cent support from adjacent landowners to the site.
“We are well aware of the sentiment in the community and we are doing everything we can to help address it,” he said.
Murphy said the company is still in the permitting process and is expected to present a final application to the province this summer. If everything goes as planned, the company would begin in 2019 the construction of 16 to 20 wind turbines capable of generating a combined 57.5 megawatts of green energy, with the facility going online later that year.
Last fall, the Dutton Dunwich group circulated a petition among residents asking the government to reverse its decision of approving the project. Congdon said his group collected more than 1,400 signatures and the petition was sent to Premier Kathleen Wynne.
“We have to continue to believe that we can stop it from happening, and it’s not something just for our community but for everyone in Ontario,” Congdon said.
The government “has admitted already many times that they have made mistakes when it comes to the energy sector, so hopefully, they will wake up and realize this is another mistake.”
NOTE: DDOWT is a community member of Wind Concerns Ontario
Parker Gallant looks at recent promises made by the Energy Minister and Premier and still has a question: where did the money actually go?
Last September 13, Minister of Energy Glenn Thibeault issued a press release announcing the Ontario Liberal government would reduce electricity bills for five million families, farms and small businesses. The relief granted was equivalent to the 8% provincial portion of the HST. The press release also claimed Ontario had “invested more than $35 billion” in new and refurbished generation.
Fast forward to March 2, 2017 and that $35 billion jumped to $50 billion in a press conference the Premier jointly held with Minister Thibeault. An increase of $15 billion in six months!
The press conference was to inform us the 8% relief announced by Minister Thibeault would be added to, with a further 17% reduction. A Toronto Star op-ed Premier Wynne wrote March 7, 2017 reaffirmed the $50 billion investment claim made the previous week, and further claimed: “By delivering the biggest rate cut in Ontario’s history and holding rate increases to inflation for at least four years, this plan provides an overdue solution.”
That made history alright, but not the way she meant. What the Premier forgot to say was that her government had brought us the biggest rate increases in Ontario’s history. In March 2011 the Ontario Energy Board (OEB) website shows the average electricity rate was 6.84 cents per kilowatt hour (kWh) and on May 1, 2016 it had increased to 11.1cents/kWh. In just over five years, the price of the commodity — electricity — increased 62%, a multiple of the inflation rate during that five years, which added about $400 to the average consumer bill.
Electricity price goes down, your bills go UP
From 2010 to 2015 Ontario demand fell by 5 TWh (terawatt hours) to 137 TWh.* That is enough to provide electricity to 550,000 “average” Ontario households for a year, yet the price for residential consumers increased 62%. The increase was not driven by the trading value via the hourly Ontario electricity price (HOEP) market. In fact, the market treated Ontario generated electricity badly as it fell from an average of 3.79 cents/kWh in 2010 to 1.66 cents/kWh in value for 2016 — a 56.2% drop.
As to how they were achieving this “relief,” Wynne and Thibeault told us they were pushing the payback period for the 20-year contracts (wind and solar) out another 10 years. Those generation sources are the principal cause of the increase in electricity prices. (For further proof of that, read Scott Luft’s recent analysis on the costs of “other” generation in 2016 which confirms its effect on our rising electricity rates.)
Where did the money go?
What the Wynne/Thibeault announcement means is, ratepayers will pay for the intermittent and unreliable power for their 20-year contracted term(s), and continue to pay for the same contracts which, by that time use equipment that will be heading for, or already in the scrap yard.
It is time for Minister Thibeault to disclose what is behind his claim of $35 billion invested and for Premier Wynne to disclose the details of the $50 billion she says went to “necessary renovations” to rebuild “the system.”
Time to come clean.
(C) Parker Gallant
* Ontario consumption remained at 137 TWh in 2016.
The opinions expressed are those of the author and do not necessarily represent policy on Wind Concerns Ontario
Editor’s Note: The Ontario government has $5 billion in new wind power contracts that have not yet been added to consumers’ electricity bills.