from Parker Gallant:
In the past six months, reports from the Canadian Manufacturers and Exporters, the C.D. Howe Institute, the Association of Major Power Consumers of Ontario, the Canadian Federation of Independent Business and the Ontario Chamber of Commerce have all called for “competitive” electricity prices.
A few of the members of some of those associations already benefit from absorption of some costs by residential and small business ratepayers, but still complain their electricity bills are too high and not competitive with competing jurisdictions in Canada and the U.S.!
Ontario is cursed with probably the most complex electricity system in the world even though 80% of our electricity is generated by nuclear and hydro. Both of those generation sources produce power at an average of about 6-7 cents per kilowatt hour (kWh), yet Ontario’s delivered electricity prices are among the highest in North America. Why?
…continue reading at Wind Concerns Ontario for 22 existing reasons, and some more yet to come
I just left a comment on an article at the Globe and Mail with the topic of importing power to Ontario from Labrador- which I’ll post below.
Yesterday the National Post broke a story about Ontario looking to import electricity from Labrador. There are lots of ugly aspects to the tale, and some interesting ones – but it’d require a lot of time to examine a “promise of cheaper, cleaner power [that] is, in effect, nothing more than a distraction, a promise that will never be fulfilled” – as Terence Corcoran aptly describes it.
My comment in the Globe criticized the Minister of Energy’s nonsense spin on saving money by not utilizing the natural gas fueled power plants contracted since the election of the Liberal party in 2003. If you believe Mr. Ciarelli is an honest man, it’s not that he doesn’t understand the system inherited, but that he doesn’t know the system his government created.
Thus:Read More »
The Ontario Chamber of Commerce (OCC) released a report last week:
“ Empowering Ontario: Constraining Costs and Staying Competitive in the Electricity Market, takes a look at the driving factors behind rising electricity costs in Ontario.
It’s about time – at best; it may be too late.
Near the end of 2015’s first quarter I wrote Ontario’s new electricity pricing program essentially taxes businesses to fund social program, which concluded many of the OCC’s members would be walloped by coming pricing changes:
Businesses below 3 MW average monthly peak:
-get stiffed with the continuance of the debt retirement charge
-get stiffed with the OESP [Ontario Electricity Support Program]
-get stiffed with the expansion of the class A program
I’m sure that’s confusing to many, but that “Businesses below 3 MW average monthly peak” class of customer did see the commodity rate it pays for electricity rise 25% from 2014′s second quarter to 2015′s, so I’m not surprised there’s some motivation to address the issues. However, they’ve got some more work to do in getting through the confusion.Read More »