Where did the $50B that spiked hydro bills actually go, Premier?

Energy Minister and Premier Wynne: What they’re not saying, Where the $50 billion went [Photo: Toronto Star]
Parker Gallant looks at recent promises made by the Energy Minister and Premier and still has a question: where did the money actually go?

 

Last September 13, Minister of Energy Glenn Thibeault issued a press release announcing the  Ontario Liberal government would reduce electricity bills for five million families, farms and small businesses.  The relief granted was equivalent to the 8% provincial portion of the HST. The press release also claimed Ontario had “invested more than $35 billion” in new and refurbished generation.

Fast forward to March 2, 2017 and that $35 billion jumped to $50 billion in a press conference the Premier jointly held with Minister Thibeault. An increase of $15 billion in six months!

The press conference was to inform us the 8% relief announced by Minister Thibeault would be added to, with a further 17% reduction. A Toronto Star op-ed Premier Wynne wrote March 7, 2017 reaffirmed the $50 billion investment claim made the previous week, and further claimed: “By delivering the biggest rate cut in Ontario’s history and holding rate increases to inflation for at least four years, this plan provides an overdue solution.”

That made history alright, but not the way she meant. What the Premier forgot to say was that her government had brought us the biggest rate increases in Ontario’s history.  In March 2011 the Ontario Energy Board (OEB) website shows the average electricity rate was 6.84 cents per kilowatt hour (kWh) and on May 1, 2016 it had increased to 11.1cents/kWh.  In just over five years, the price of the commodity — electricity — increased 62%, a multiple of the inflation rate during that five years, which added about $400 to the average consumer bill.

Electricity price goes down, your bills go UP

From 2010 to 2015 Ontario demand fell by 5 TWh (terawatt hours) to 137 TWh.* That is enough to provide electricity to 550,000 “average” Ontario households for a year, yet the price for residential consumers increased 62%.   The increase was not driven by the trading value via the hourly Ontario electricity price (HOEP) market.  In fact, the market treated Ontario generated electricity badly as it fell from an average of 3.79 cents/kWh in 2010 to 1.66 cents/kWh in value for 2016 —  a 56.2% drop.

As to how they were achieving this “relief,” Wynne and Thibeault told us they were pushing the payback period for the 20-year contracts (wind and solar) out another 10 years. Those generation sources are the principal cause of the increase in electricity prices.  (For further proof of that, read  Scott Luft’s recent analysis on the costs of “other” generation in 2016 which confirms its effect on our rising electricity rates.)

Where did the money go?

What the Wynne/Thibeault announcement means is, ratepayers will pay for the intermittent and unreliable power for their 20-year contracted term(s), and continue to pay for the same contracts which, by that time use equipment that will be heading for, or already in the scrap yard.

It is time for Minister Thibeault to disclose what is behind his claim of $35 billion invested and for Premier Wynne to disclose the details of the $50 billion she says went to “necessary renovations” to rebuild “the system.”

Time to come clean.

(C) Parker Gallant

* Ontario consumption remained at 137 TWh in 2016.

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

Editor’s Note: The Ontario government has $5 billion in new wind power contracts that have not yet been added to consumers’ electricity bills.

 

Comments

Notinduttondunwich
Reply

Looks like Ole Katty Wynnde is telling people that they don’t know shat again!!
Wagging her authoritative finger at people like…
The auditor general…. “well I don’t know where you got your numbers from auditor general but…. they’re wrong… so obviously we are right!!!”

Maybe shes wagging the finger at The hydro one ratepayers…… “Well YOU BAD ACTORS in Ontario are the reason for hydro prices spiking!!!! because you conserved so much hydro so now we have to increase the hydro prices…. dummies….

Maybe shes wagging her finger at all Ontarions…. “well you can thank me later for spreading out all those payments on them over priced wind and solar contracts Ontarions made the lieberal party sign…..

Maybe shes wagging her finger at the good folks of Dutton Dunwich….
” you people are too simple to understand how our great lieberal minds work so you just sit down… shut up… and let this foreign multinational company erect giant useless environment devastating industrial wind turbine project that will kill… birds… bats… bees…. people… ground water… the economy….. and people’s lives….

Barbara
Reply

The issue of Ontario growing the energy export market for electricity to be sold elsewhere is now out in the open.

Barbara
Reply

MI Energy/Michigan Agency for Energy, Sept.23, 2016

Spotlight section > ‘Studies on electric reliability, possible U.P. Ontario connection begin. (PDF)

http://www.michigan.gov/energy

Bert
Reply

The Wynne/Thibeault plan is to subsidize more surplus wind power with our tax money. Than give away the subsidized surplus energy to Michigan. Cheap, so they can take over our industries and jobs.
Where did the 15 billion go? Will the 15 billion pop up in time, for Wynne to balance the books, before the elections?

Maks Zupan
Reply

Ms Wynne is not the leader in the green energy field -as she and her energy minister like to claim- she is the world leader in wasting the largest amount of public money for NOTHING.
I think it is realistic to say that nobody in the Ontario history has caused such a damage to its economy. It is time to hold her and her predecessor legally responsible.

Sommer
Reply

People in rural Ontario whose lives have been drastically changed because of turbines having been sited too close to their homes and who have been pleading with this government for protection, to no avail, would fully agree with you. The anger, disillusionment and sense of betrayal is beyond anything I’ve ever seen.
People who know that climate science did not/ does not validate the fear mongering alarmism that was used as the rationale for turning parts of rural Ontario into ‘sacrificial zones’ for this industrial wind experiment want justice served.

Notinduttondunwich
Reply

Let’s do it Maks…. how do we get the ball rolling… how do we purge publicly elected positions for irresponsible and reckless behaviour. Is there a form I can submit to someone with a $100.00 fee plus HST…??? Let me know please….. someone…

Notinduttondunwich
Reply

I know Barbara…. I was livid when I read Glenny Glen Glen Thibeault is out making deals with our hydro again… Dutton Dunwich councillors will make a declaration to Invenergy this Friday…. it will all start to unwind out here after this meeting…. constant barrage of unanswered letters to the Premier…. the energy minister…. and his excellency surfer dude Justin Treadeau…. to please review the policies and decisions your government has made on behalf of us…. unsuccessfully….. again someone has taken all the used rubber tires from the collection box…. what for I wonder….

Notinduttondunwich
Reply

RED ALERT !!! RED ALERT!!!
ATTENTION ALL ONTARIONS…..
WIND ALERT WIND ALERT…..

Gridwatch.ca

16.9% wind power
2545 MW per hour EXPORT ….

RED ALERT RED ALERT…

ALL CITIZENS OF ONTARIO ARE TO SHUT OFF ALL POWER SOURCES IMMEDIATELY……
OR FACE FINES OR IMPRISONMENT OR BOTH OR SOMETHING ELSE….

THIS IS GREED ENERGY ACT LEGISLATION….
TO AVOID OUR ELECTRICAL GRID FROM MELTING DOWN WHEN THE WINDS BLOWS YOU ARE BY LAW REQUIRED TO CUT ALL POWER SOURCES IMMEDIATELY SO THAT EXPORT DEMAND CAN BE FULFILLED PROMPTLY WITHOUT FURTHER PENALTY TO RATEPAYERS…..

RED ALERT…..

Glenny Glen Glen wouldn’t let that happen to us… he has lots of experience in the field his ministry represents….. his governmentis transparently…. . the public has been consulted… how could it go wrong…..

Notinduttondunwich
Reply

CRITICAL CRITICAL CRITICAL
RED ALERT….

WIND GRID CAPACITY AT 18.5%

MANDATORY BLACKOUTS!!!
MANDATORY BLACKOUTS!!
ALL ONTARIONS RATEPAYERS MUST BLACKOUT!!! RATE INCREASES…. FINES … AND IMPRISONMENT WILL LEVIED AGAINST YOU….. IF YOU FAIL TO COMPLY WITH THE “GREED ENERGY ACT “” TO GUARANTEE EXPORT QUOTAS BE FULFILLED PROMPTLY OR PENALTIES WILL BE LEVIED AGAINST YOU…

Notinduttondunwich
Reply

Lol… kk … I’m done…. I’m going to go out and try to stop the wind….

Notinduttondunwich
Reply

http://m.huffpost.com/ca/entry/15525376

Just like what the lieberals tell the good folks of Ontario…

it’s none of your business how we spend your cash….. so shut up and sit down!!!

Notinduttondunwich
Reply

Wow… what an incredible speech today by Darrel Chrisjohn from our local native band…. check out the Facebook page at Dutton Dunwich opposition to wind turbines to see this incredible pledge… it was so emotional to watch and he’s right… they Eagles are calling…. I hear them!!!

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