Hurting Michigan

Parker Gallant has called for the Ontario government to “shutdown the intertie line with Michigan” – in an article that notes some of my work. I feel I should offer some support as Michigan is being a lousy neighbour and it would feel therapeutic, if nothing else, to respond.

I’ll try to stick to data.

The system operator in Ontario (IESO) data indicates the Michigan intertie is the most lucrative for exports – but that’s not saying much: exports at that intertie were bought in Ontario for an average of just 1.2 cents/kWh ($12/MWh) in 2020 – but were in such high demand another 0.9 cents/kWh of congestion rent was paid. Over the past 5 years congestion rents comprise 46% of the revenue on the Michigan intertie. The IESO’s insiders’ committees are considering sharing this revenue with exporters, whereas in the past its only benefitted internal Ontario consumers.

Action #1: hell no. Issue a ministerial directive that congestion rents will only benefit consumers in Ontario.

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