Warning: your blood will boil (and your wallet will drain) on reading this
Another weekend of paradise for wind developers in Ontario?
The weekend of November 9th and 10th were great days for the wind power developers but horrible for ratepayers as I pointed out in a recent article (on Energy Probe)—in fact, it cost Ontario ratepayers upwards of $20 million.
This past weekend was even better for the wind power developers who supplied the grid with almost 60,000 megawatt hours (MWh) in 48 hours and who were obligated to constrain (and got paid for constraining) what looks to be another 3,500 MWh.
While the developers were being paid for that, Ontario was busy exporting 119,000 MWh at an average price of $7.06 per MWh (.07 cents per kWh) on the Saturday, and on Sunday we received
67 cents per MWh. All of the exports generated around $450,000 over the weekend to slightly offset the dollars that will be billed to ratepayers via the Global Adjustment (GA).
While the cost to ratepayers was once about $20 million, which included close to $14 million paid to the wind power companies for generated and constrained power, there is more: perhaps as much as $5 million was paid to Bruce Power for steaming off up to 2,500 MW per hour of nuclear, and another $1 million or so to the gas plant generators for sitting idle. Not included in that estimate is revenue lost to OPG for spilling clean hydro which may have gone to reduce the “residual stranded debt.”
What does it all mean? The IESO Market Summary reports for the two days on the weekend indicated Ontario’s demand was collectively 690,000 MWh but ratepayers were obligated to pay for approximately 900,000 MWh or 30% more than we consumed, without factoring in line losses which would add another 1-9%.
So the next time you go shopping for anything supplied by the governing Ontario Liberal Party be prepared to pay them 30% more than the value of what you are purchasing. You should also look for November to produce the highest GA amount so far as the Hourly Ontario Energy Price (HOEP) has averaged $9.98 per MWh or 1 cent per kWh which means, come May 1, 2014, we should expect electricity rates will climb again.
Actor Alan Alda is supposed to have said that “Insanity is just a state of mind.” Maybe that represents the way this province is run, considering the state of mind of our Energy Ministers and the giant, expensive mess they have created.
November 19, 2013