Ontario’s $12-million New Year’s Day hangover
Happy New Year New York and Michigan!
Once again Ontario’s oh so generous ratepayers, ushered in the New Year by treating our neighbours to some very cheap electricity. We were much nicer this January 1st than last year, as we exported a record 87,000 megawatt hours (MWh) at a bargain price. That sale generated revenue of about $275,000 to offset a small part of the costs to Ontario’s ratepayers. We exported 38,000 MWh more (+ 78%) than on January 1, 2014, and a year ago we generated $1,450,000 for the smaller number of MWh sold.
Wind was presumably a big factor in this year’s export sales as wind power developers also produced a record 58,800 MWh — power we didn’t need. That cost Ontario’s ratepayers of about $7.3 million, based on the estimated contract costs. The cost falls to $7 million if we allocate the sales revenue from the exports just to wind, despite knowing other types of generation were included.
Back on January 1, 2014 wind generators produced only about 11,400 MWH so compared to 2014 wind power generation for January 1, 2015 increased by 47,400 MWh, or more than 400%. Out of the 87,000 MWh exported, 62,000 MWh were sold to Michigan and New York for $4.41 per/MWh (not a weighted average) which accounts for the $275K of export revenue generated.
In total, January 1, 2015’s generation cost Ontario’s ratepayers $7 million (net) for wind, another $400,000 for curtailed wind, about $1.2 million for steamed off nuclear, almost $1 million for “embedded” wind and solar and about $3 million for the Net Revenue Requirement for those idling gas plants.
Put those all together and the New Year’s Day party left Ontario’s ratepayers with a $12.6 million hangover.
Happy New Year!
January 2, 2015