Six months and Ontario’s exports over $1B
Although the Independent Electricity System Operator (IESO) failed to produce their Monthly Summary for June 2015 in a reasonable and timely fashion, they did provide information that allows one to determine how much our electricity sector has removed from ratepayers pockets for the first six months of 2015.
How bad is it? Bad.
It turns out 1.9 terawatts (TWh) of Ontario’s electricity production (15.2% of Ontario’s demand of 10.6 TWh) was exported to our neighbours in Michigan, New York and Quebec, etc., in June. Ontario received payment of those exports at the hourly Ontario electricity price (HOEP) $15.31/megawatt hour (MWh) or 1.53 cents per kilowatt hour (kWh) of $29.1 million. However, the cost to produce and transmit that 1.9 TWh, was $131.43/MWh (13.14 cents/kWh) — that means it cost Ontario ratepayers $249.9 million. Most of that wound up in the big (and growing) pot referred to as the Global Adjustment (GA).
$221 million lost in just one month
So Ontario’s electricity ratepayers picked up the difference of $221 million, which when added to our export losses for the prior five months of 2015, brought costs to almost 1.1 billion1. for the first six months of 2015.
The 1.9 TWh exported in June brought total exports for the first six months of 2015 to 12.53 TWh. That’s about what the entire City of Toronto consumed in that same period.
Perhaps it’s time for Premier Wynne to realize that the losses on our exports represents a “green tax” on all of the ratepayers in Ontario and the remedy is to cancel any further renewable energy contracts. This could prevent bankruptcy and hardship for many Ontario electricity customers and avoid fulfilling the prediction of Ontario’s Chamber of Commerce that 1 in 20 businesses would “close their doors” due to high electricity prices.
August 11, 2015
1. The figure of $1.1 billion is equivalent to the cost of moving the Oakville and Mississauga gas plants but that was a one-time event whereas this cost to ratepayers will occur twice in 2015 and continue into the future.