Following a recent post in which I displayed the growth in hours the market failed to produce a positive price for electricity I was advised a much better indication of Ontario having too much committed supply is when the price exceeds the taxes on hydroelectric generators. I’ve since performed some research, and analysis, that do show this is a better methodology for estimating periods of surplus baseload generation (SBG).
The Ontario Ministry of Finance shows two charges levied on hydro-electric (hdyro) generators: property taxes and a water rental charge of 9.5% of “a stations’s gross revenue from annual generation”. The property tax escalates with the production level: 2.5% (of revenues) on the first 50 gigawatt-hours (GWh), 4.5% on the next 350 GWh, 6% on the next 300 GWh, and 26.5% on all annual generation above 700 GWh. This makes the top rate 36% (combining water rental and property tax).
OPG’s hydro generators have a number of rates, but all are between $40 per megawatt-hour (MWh), and $45/MWh. For simplicity, I picked $15/MWh (36% of $41.67/MWh) to query IESO data in order to estimate the percentage of hours Ontario has experienced surplus baseload generation.Read More »
Ontario continues to waste its water rights on the Niagara river.
I revisited some posts I’ve written on this topic today, and updated data to bring the graphics up to the end of 2015
A very quick refresher to explain this first graphic.
The U.S. and Canada share water rights on the Niagara river. Ontario Power Generation (OPG) runs the Niagara river power plants in Ontario, and there are similar plants on the U.S side (R. Moses Niagara). When I first encountered the issue in 2011, the U.S. side had additional generation because OPG could not get enough water through its turbines to utilize the full allocation.
This was first posted on my coldaircurrents site – which I use for posting found items of interest. This post went beyond pointing out OPG’s 2014 results, with enough of an edge I’m double posting it here.
OPG’s final 2014 results have been released and the net income they are reporting is, if my records are correct, the highest since 1998
[Toronto]: – Ontario Power Generation Inc. (OPG or Company) today reported income of $568 million, before extraordinary gain, for 2014 compared to $135 million for 2013. Net income, after extraordinary gain, for 2014 was $811 million, compared to $135 million in 2013.
Let me tell you about extraordinary items.
There are new business segments for contracted generation (biomass, hydro and gas partnerships) and eliminated business segments (thermal, or fossil fuels, and non-regulated hydro).