October 2014: Ontario’s breath-taking, record-breaking month for electricity bills
Wind power significant in surplus power sell-off
Special report by Parker Gallant and Scott Luft
Summary:
New figures reveal that in October, the Ontario government paid $1 billion more for electricity than the electricity market value of that power. Numbers released by the Independent Electricity System Operator (IESO) show the Global Adjustment for the month of October topped $1.0 billion for the first time ever. This estimate exceeds the September estimate by more than $200 million.
The record-breaking month will eventually affect all electricity users, but the immediate direct impact is on any electricity user holding a retail contract. In November, they will be charged an additional 10.1 cents per kWh on top of their contracted price, likely in the range of 4 – 6 cents per kWh. For an average household using 800 kWh per month, this would mean an extra charge of $80. For industrial or agricultural users, the added cost would be much higher.
The situation has developed as a result of Ontario’s rush to incorporate renewable energy in the form of wind, solar and biomass into the grid without proper planning on how this new capacity would align with demand. The result is that during the spring and fall seasons, when demand is lower, IESO has a surplus supply capacity of over 100% during many hours of the day. Through the Global Adjustment fund, Ontario’s electricity consumers pay contracted generators to idle or curtail generation of thousands of megawatts .
In October, wind power generators produced almost 600,000 MWh of electricity at a cost of $81 million and additionally were paid for another $11 million for 100,000 MWh that they could have produced, but were asked not to add to the grid. Due to the glut of power in October, Ontario sold this power to neighbouring jurisdictions at an average of 4.31 per MWh or $2.6 million, meaning a loss of almost $90 million for Ontario electricity users.
This estimate does not include the amounts paid to Bruce Nuclear for 400,000 MWh of “steamed off” nuclear production. As wind power is guaranteed priority access to the grid under the Green Energy Act, other sources of production must be reduced in the event of surplus wind and solar power generation.
Despite this situation, Ontario continues to push for an expansion of unreliable wind power capacity. Currently there are over 700 megawatts of capacity under construction, in the approval process, or the subject of various appeal procedures. In each of these cases, the Ontario government has options to do the sensible thing and end these projects, saving Ontario electricity consumers from a 20-year commitment to the green energy folly. Instead, the Ontario Power Authority has plans to issue an RFP for an additional 300 MW of on-shore wind capacity in early 2015.
Parker Gallant and Scott Luft
See the full paper Gallant-LuftRecord-breakingOctoberNov5
9 Comments
Herwig
21% of eligible voters made a majority out of the greedy, lying and cheating Ontario Liberals. Add the 48% of eligible voters, who did not vote, makes nearly 70% of eligible voters, who are reponsible for this disastrous majority government and the gradual destruction of Ontario. Being such a huge majority of eligible voters, they should all foot the bill for all the waste this Liberal Government has created and relieve the other 30% of the horrendous costs. A horrible example of what a few misguided voters and a lot of non-voters can achieve.
thebiggreenlie
Ontario is a basket case that will never recover from these fiscal bandits!
Franis
And if you compare the names of Liberal insiders that are getting rich off this scam the list would be the who’s who of Dalton McGuinty confidants.
The Ontario Liberal Party should change its name to the Ontario Liberal Carpetbaggers, Thieves and Scam Artists Party
Alison
There is a need to explore alternatives. The cost of the Smart meter rollout alone is HUGE and far from saving money on electricity people bills have risen enormously. There’s a lack of privacy with the Smart grid, and safety but the worst are the serious health impacts. The whole system needs a rethink. See what the experts are saying at http://EMFsummit.com
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