Ontario surplus power exports cost consumers in January

In Ontario, people do laundry in the middle of the night; in New York they say, hurray for cheap power from Ontario!
In Ontario, people do laundry in the middle of the night; in New York they say, hurray for cheap power from Ontario!

New York: WE love Ontario’s cheap power—thanks!

Ontario’s neighbours are once again thanking the electricity customers of Ontario for their generosity and giving spirit, as demonstrated in January 2015.  What a nice way to start the New Year, getting all that cheap electricity generated by their Ontario neighbours!

In January Ontario exported 2,043,768 megawatts (MWh) and for an average price of $29.55 per/MWh while Ontario electricity customers picked up the additional costs of the Global Adjustment pot of $50.68 per MWh.

The sale of that surplus (enough to supply about 2.5 million Ontario homes with power for the whole month) represented 15.6% of Ontario’s total demand. It resulted $58.5 million in revenue but cost Ontario electricity ratepayers $164 million.  That means all Ontario’s electricity customers reached into their pockets to make sure that wind and solar power developers like Florida-based NextEra, Enbridge and Germany-based wpd Canada, and others were fully compensated for all the power they generated (or didn’t generate) and was probably exported.

The $106.5 million extra that Ontario’s kindly ratepayers paid in January was about $25 for each ratepayer so it will hardly be missed unless you are a senior on a fixed income, living at the poverty line, have a family to feed, or are disabled.

So, Ontario ratepayers, do you think we can keep this up for the full year?

©Parker Gallant,

February 19, 2015

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

P.S. Upset about the role of wind power in Ontario’s electricity sector and its effect on our economy? Time to make your voices heard —join Wind Concerns Ontario!

Comments

John Vincent
Reply

Great this news is getting out. Now to get it into the news media and get them on side, That’s be the harder sell.
Now that Ontario Power Authority has taken ovee IESO, the “Green” sell will come easier for that side.
The consumer side is going to be worse this year, what with the Pontypool and Manvers windmills going in the ground. Add to that the soalr plants in Zephyr, Kawartha Lakes and elswhere being added to the list this year.
I’m really surprised the mainstream media doesn’t latch ont this.

Barbara
Reply

The MSM caters to the money interests involved in renewable energy.

Barbara
Reply

And the HVDC underwater Lake Erie transmission cables from Ontario to Pennsylvania could be the next exporters?

Ann
Reply

If ppl really believe that wind is the reason for outrageous hydro bills than were not the intellectual bunch we claim to be . the nuclear projects running astronomical over time budget, opg overages & fraud have all played a part not to mention the continued paying of the 1970’s debt on our hydro bills & the huge scam of smart meters! Just saying

Parker Gallant
Reply

No, it’s not only wind! It’s wind and solar and gas plants to back them up and its spilled hydro and constrained wind and steamed-off nuclear at Bruce, not to mention billions on transmission lines to hook up those wind and solar developments. It’s $500 million annually spent to push conservation, it’s granting LDC the right to increase our rates after we conserve, it’s paying ridiculous salaries and indexed pensions, it’s $1.5 billion of spending on the smart grid, conversion of coal plants to biomass, building the worlds biggest tunnel under Niagara Falls at a cost of $1.5 billion for marginal power, etc., etc.

People forget the nuclear overruns were principally caused by political interference. Darlington was stopped and started three times and ran up interest costs of over $6 billion because of that. They also had to retain staff that had been trained to run nuclear plants at an additional cost of $1 billion. Nuclear isn’t causing the run-up in our bills, it’s all of the above.

Exporting 15% of our demand every month is simply the icing on the cake!.

What it comes down to is our climbing energy bills have been caused by political interference by people who don’t have a clue!

Greg Latiak
Reply

Thanks, Parker.
Your continuing contributions on behalf of rationality and the common good are appreciated. Too bad its not government policy.

Rachel
Reply

Do you know who is profiting in New York? I don’t imagine the consumers are having the discount passed onto them.

Parker Gallant
Reply

The imports will go into the supply mix and included and averaged out so all NY consumers should benefit. Its the same for Ontario. If Ontario didn’t have cheap hydro & nuclear supplying about 80% of our demand our prices would be two to three times higher. A scary thought

Barbara
Reply

Champlain Hudson Express merchant 1,000 MW HVDC line fro Quebec to New York City.

In July 2010 ir was estimated that this line would save New York customers $8.1 billion on the first 10 years of operations 2015-2024.

http://en.wikipedia.org/Champlain_Hudson_Power_Express

This project can also be compared to the development of the Ontario 1,000 MW HVDC merchant underwater Lake Erie line from Ontario to Pennsylvania now in progress.

Some of the same parties who developed the Champlain Hudson line are associated with the Ontario HVDC line to Pennsylvania.

Digger Dan
Reply

REWARD

$1,000,000

For information which leads to the arrest, conviction and incarceration of any member of the Outlaw Dalton Gang involved in lawless acts against Solid Gold and its stakeholders.

There are 200 sq km’s of highly fertile geology at stake here and there is a high grade gold discovery right in the middle of it.

The Dalton gang, with the assistance of the FN Indians and a few outriders, are attempting to steal the Gold in a cunning oppression swindle.

There is a breakdown in the rule of law, the sheriff has fled and politics has entered the Queens Court so citizens without capacity are abandoned to protect their property rights by other devices.

We will continue

Ps. Premier Wynne come clean on the Solid Gold scandal, then resign.

Karen
Reply

Parker,
It is hard to imagine that these people in the Liberal administration “don’t have a clue”. Over and over again they demonstrate the deft twisting and manipulation of facts. Whether for ideological reasons or just plain greed and power — possibly a combination of both they certainly appear to be followers of Saul Alinsky’s plan and we seem to be well on our way. All we need now is to have Trudeau in control of Canada.
How to create a social state by Saul Alinsky:
There are eight levels of control that must be obtained before you are able to create a social state. The first is the most important.
1) Healthcare– Control healthcare and you control the people
2) Poverty – Increase the Poverty level as high as possible, poor people are easier to control and will not fight back if you are providing everything for them to live.
3) Debt – Increase the debt to an unsustainable level. That way you are able to increase taxes, and this will produce more poverty.
4) Gun Control– Remove the ability to defend themselves from the Government. That way you are able to create a police state.
5) Welfare – Take control of every aspect of their lives (Food, Housing, and Income)
6) Education – Take control of what people read and listen to – take control of what children learn in school.
7) Religion – Remove the belief in the God from the Government and schools
8) Class Warfare – Divide the people into the wealthy and the poor. This will cause more discontent and it will be easier to take (Tax) the wealthy with the support of the poor.

Jimmy
Reply

There’s an important fact missing in this story and that is that by taking our excess power at off-peak times our neighboring power jurisdictions are actually doing Ontario a huge favor and believe it or not actually saving Ontario money! The problem lies with our nuclear reactors, they have to run 24/7 whether we need power or not. Shutting them off for 8 hours over night is not an option as they take days/weeks and millions of dollars to shutoff and restart. So our neighbors are actually doing us a favor by constraining they’re plants (probably past what would be considered optimum) to make room for our excess capacity, they’re doing us a favor, and it’s not free!

swag
Reply

I’d like to find out more? I’d care to find
out some additional information.

idjut
Reply

Here’s an idea, how about reducing the cost of hydro to manufacturing facilities by 1/2 and attracting new business and jobs. Then we would not have “excess” power, we’d use it and have jobs! This is not rocket appliances folks!

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