Ontario’s Power Trip: Not a FIT review

Ontario’s Power Trip: Not a FIT review | FP Comment | Financial Post:

By Parker Gallant

The long anticipated Ontario Feed-in Tariff (FIT) two-year review report was sent to the current Minister of Energy, Chris Bentley, this week. The ministry released its position on the “report” only three days later and basically endorsed the recommendations found in it.

The FIT review avoids discussion of the impact on electricity ratepayers. To the Minister`s doubtless embarrassment, a submission Wednesday to the Ontario Energy Board by Aegent Energy Advisors reveals what the review report does not. The Aegent report, produced on behalf of five parties, including diverse groups such as the Canadian Manufacturers and Exporters and the Vulnerable Energy Consumers Coalition, forecasts double-digit increases through to 2016. At the low end affecting large direct consumers, the submission estimates rate increases of a minimum of 36% and as much as 48%. Residential consumers face rate hikes up to 58%. The Aegent report is consistent with other forecasts of similar rate increases over the next few years.

In contrast to the Aegent report, which shows soaring power prices, the FIT review pretends that the province runs a tight ship that will become tighter still. It recommends, for example, reducing prices paid to wind and solar developers nominally by 15% and 20% respectively. Yet the new prices will still leave Ontario leading the way in respect to subsidizing those two unreliable and intermittent sources of electricity generation compared to most G20 countries.

The FIT review, prepared by Fareed Amin, deputy minister of agriculture, isn’t much to look at. It could have been pieced together by simply referencing past press releases issued by the former and current energy ministers. It contained no surprises. It’s a Liberal “stay the course” report.
Read Parker Gallant’s full article at the Financial Post site

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